chapter 1 summary - princeton.edu

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Chapter 1

Summary

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Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Computerland Information Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .National Information Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Purpose and Limitations of the Study . . . . . . . . . . . . . . . . . ..;...... . . . .

Computers, Information Systems, and Society. . . . . . . . . . . . . . . . . . . . . . . . .Nature of Computer-Based Information Systems. . . . . . . . . . . . . . . . . . . . .Future Trends in Computer-Based Information Systems. . . . . . . . . . . . . . .The Computer-Based Information Society, . . . . . . . . . . . . . . . . . . . . . . . . . .

The Structure of Information Policy Issues . . . . . . . . . . . . . . . . . . . . . . . . . . .Information Policy, Law, and Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . .System Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Information Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Secondary Policy Impacts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Long-Term Societal Effects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Public Policy Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Innovation, Productivity, and Employment ..,. . . . . . . . . . . . . . . . . . . . . .Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . * * * .

Government Management of Data Processing. . . . . . . . . . . . . . . . . . . . . . . . .Society’s Dependence on Information Systems . . . . . . . . . . . . . . . . . . . . . . .Constitutional Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Regulatory Boundaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other Issues... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3356

889

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131314151616

16161819

2021222424

TABLE

TableNo. Page

l. Structure of Information Policy Issues... . . . . . . . . . . . . . . . . . ..00,.. . . 14

LIST OF FIGURES

FigureNo. Page

l. The One-Chip Computer: Offspring of the Transistor. . . . . . . . . . . . . . . . . . 32, Drop in Average Computer System Cost per 100,0OO Calculations

From 1952-80. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43. Increase in Capability of Semiconductor Chips From1956-80. . . . . . . . . . . 44. Computer Technology in a National Information System . . . . . . . . . . . . . . 65. Communication Technologyin a National Information System . . . . . . . . . 76. Four Sector Aggregation of the U.S. Work Force by Percent, 1860-1980. . 137. Value Triad of Information: Conflict and Competition Among Private,

Commercial, and Public Value . . . . . . . . . . . . . . . . . . . . . . ● ***... . . . . . . . 15

Chapter 1

Summary—Introduction

Computers and InformationSystems

Computers have become a major tech-nological tool of American society during thepast quarter of a century. New develop-ments in computer and communication tech-nology promise within this decade an evenmore radical revolution in the way that in-formation is collected, stored, used, anddisseminated.

Large-scale integrated circuit technologyallows hundreds of thousands of electroniccomponents to be fabricated on a thin siliconwafer smaller than a paper clip (see fig. 1)thus providing computing capability hun-dreds of times less expensive, less energy-consuming, and more reliable than was avail-able only two or three decades ago, as shownin figure 2. Because these microelectronicdevices are changing the economics of com-puter access and use, they are dramatically

Figure 1. —The One-Chip Computer: Offspring of the Transistor

,.

Photo cred~f Be// Labs

The MAC-4 one-chip computer, developed for a variety of telecommunications applications, is comparedto a standard-sized paper clip. The chip’s numerous functional areas are labeled

3

—

4 . Computer-Based National Information Systems: Technology and Public Policy Issues

Figure 2.— Drop in Average Computer SystemCost per 100,000 Calculations From 1952-80

1.00

0.1

001

0001

0.0001

000001

L Cost per100,000

$1.26 Year calculatlonsa

IA 1952 $1.26k 1958 0,26

k $0.261964 0.121970 0.01

‘L 1976 0.005k$o 12 1980 0.0025

1950 1960 1970 1980Year

aco~t per 100 OOCI Calcu Iat tons IS based on data for the followlng I EM com Puter

systems (w I ;h year In parentheses) 701 (1952), 7090 ( 1958), 360/50 ( 1964),370/1 66 (1970), 3033 (1976), 4300 (1980)

SOURCE Off Ice of Technology Assessment and President’s ReorganlzatlonProject, Federa/ Dafa Processing Fleorgan/zat/orr Sludy Basic Reporfof the Sc/ence and Technology Team, Washington, D C June 1978,pp 2930

affecting the ways in which computers areused, and who is using them.

This change has been accompanied byequally rapid improvement in communica-tion technology. * New telecommunicationtechnologies such as direct satellite broad-casting, local area distribution cables, andlong-distance data communication networksallow computers to be used in ways thatwere unimagined a decade ago. Although ini-tially distinctly different, computer and com-munication technologies are increasinglyinterdependent, and are being combined toform new products and services and tochange the nature of information systems inseveral ways:

*The development of communication technology is ex-

amined in detail in the OTA report, Telecommunication Tech-nology and Public Policy, in press.

Computers are becoming smaller andless expensive, thereby increasing theirrange of applications. Today, computerlogic is even being built into commondevices such as ovens and automobilecarburetors, and complete small com-puter systems are being sold throughconsumer retail outlets at a priceequivalent to a first-rate high-fidelitystereo set. At the center of this trans-formation is the integrated circuit chip,a tiny device capable of containing anentire computer system. The increasingcapability of these circuit chips isshown in figure 3. As a result, the largecomputer that occupied one or severalrooms in the late 1960 will soon fit in adesk drawer, and a medium-size com-puter will fit in a briefcase or even a coatpocket.Computers can be connected inexpen-sively to communication lines making itpossible to provide access economicallyto large computer data bases from any-

Figure 3.— Increase in Capability ofSemiconductor Chips From 1956-80

107

106

105

104

103

102

10

11950 1960 1970 1980 1990

Year

SOURCE: Instltute of Electrical and Electronic Engineers, IEEE Spectrum. vol.17, June 1980, p 48, and VLSI/LSl IEEE Spectrum VOI. 18 January1981, pp. 57-61

Ch. l—summary ● 5

where in the country or the world. Net-works of remotely sited computers pro-vide services such as credit card andcheck authorization or airline schedul-ing to users nationwide.

c Techniques for the organization anddisplay of information are improving asare methods of instructing the com-puter to perform its tasks, thus makingit easier for nonexperts to obtain usableinformation.

● Information storage technology whichis less costly and more compact makesit feasible to store large amounts of in-formation for long periods of time inelectronic form. In many cases it costsless for electronic storage than to main-tain paper records, and access to spe-cific items is faster and more accurate.

National Information Systems

The focus of this study is on national in-formation systems that are made possible byadvances in computer and communicationtechnology.

The term “national information systems”as used here means systems that: are sub-stantially national in geographic scope (i.e.,multistate); are organized by Government orprivate organizations or groups to collect,store, manipulate, and disseminate informa-tion about persons and/or institutions; andare in some significant manner based oncomputers and related information and com-munication technology.

Furthermore, the focus is primarily onlarge, interconnected national systemswhere a substantial national interest is in-volved (e.g., in the financial, postal, military,and air traffic safety areas). Examples ofsuch systems include:

●

●

the computer-based National Crime In-formation Center operated by the Fed-eral Bureau of Investigation;the FEDWIRE electronic funds trans-fer network operated by the Federal Re-serve System;

c

●

●

●

●

●

the nationwide electronic mail servicesoperated by several private firms andsoon to involve the U.S. Postal Service;the nationwide computer-based creditcard and check authorization services(e.g., VISA, American Express, Master-Card, Telecheck, Telecredit);the computerized air traffic controlsystem operated by the Federal Avia-tion Administration;the computerized military commandand control systems operated by theDepartment of Defense;the nationwide computer-based airlinereservation systems operated by majorair carriers (e.g., United, TWA, Amer-ican); andthe computerized automatic quotationsystem for obtaining over-the-counterstock prices operated by the NationalAssociation of Securities Dealers.

A secondary focus of the study is on theuse of personal computers* when intercon-nected as part of a larger network. For exam-ple, MicroNet and The Source are new serv-ices, designed to link owners of personal com-puters with each other and with larger com-puters, data banks, and information proc-essing services, over a nationwide network.Also, in the future, stand-alone computergames when combined, for instance, with atelevision set and a telephone will be able toserve as a terminal with similar access to anationwide network.

A typical national information system isillustrated in figures 4 and 5. In the example,there are seven cities (nodes) in the network:New York, Washington, D. C., Chicago, Dal-las, Atlanta, Los Angeles, and San Fran-cisco. Information (for instance, on inven-tory, sales, credit transactions, and the like)is stored by the headquarters office of a na-tional retail sales company in a central (host)computer in Dallas, as shown in figure 4. Theregional offices also store information in

*Small but fully capable computers currently selling forseveral hundred to a few thousand dollars and designed foruse by individuals in the home, business, or school.

6 ● Computer-Based National Information Systems: Technology and Public Policy Issues

Figure 4.—Computer Technology in a National Information System (illustrative)

m’ Mlnl - Mini-computer

Datacomputer Telephone

PI“=

rcommunication i

Ilnk

Terminal

/

~See figure 1-4)

%~p -

Terminal Terminal Terminal Terminal 4—

MinkHostcomputer

Chicago Washington, D C. New York L

Personalcomputer

.

ml/\l Terminal

L!&&hAtlanta

SOURCE: Off Ice of Technology Assessment based on IEEE Specfrurn. vol 17, October 1980, p 24, and AR I NC CorrJ Overv/ew 01 L30rnesl/c Te/ecornrnun/caf /ens

Common Carrier Industry, September 1979

their own minicomputers. * All terminals onthe network can access the headquartersdata base (in the host computer) and the re-gional data bases distributed around thecountry. The information is disseminatedfrom one city to another via the satellite andmicrowave communication links illustratedin figure 5.

This is an example of current technologyused by a growing number of private firmsand some Government agencies in what isknown as a “distributed data processing net-work . Distributed means that the databases (and computer capability) can be inseveral locations (e.g., branches of a retailstore as above, or regional offices of a Gov-

*Small computer systems currently selling for under$50,000.

ernment agency) rather than in one centralcomputer. Furthermore, owners of a per-sonal computer could plug into such a net-work, with the appropriate code words andauthorization, via a telephone line (see fig. 4)in their own home or office and actuallytransact business by computer.

Purpose and Limitations—of the Study

This overview study is intended tobroad introductory examination of

be acom-

puter-based national information systemsand related technology and public policyissues that Congress is likely to face over thenext few years. It will also serve as a founda-tion for the other OTA information systemsstudies and for future in-depth examination

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Ch. l—Summary ● 7

Figure 5.—Communication Technology in a National Information System (illustrative)

A

. ./! :.

Rooftopstation

Data communication by satellite

FI

m, D.C.

1\.

Rooftopstation

1

a. . . . . . . . . .-- -------------- . . . . . . . . . .---”Q-*” . . . . . . . . . .

--- ------ *-.. —

I 4

Terminaland minicomputer

Terminaland minicomputer

Data communication by microwave

RooftoD City City Rooftoptransceiver nod-e node transceiver

SOURCE Office of Technology Assessment based on /EEE Specfrurn VOI 17, October 1980, p 24, and ARINC Corp Overv/ew of Dornesf/c Te/ecofnrnun/caf/errsCommon Carr/er /ndusfry, September 1979

of particular systems and issues. It also ex-amines the increasingly critical role that na-tional information systems play in society.

It would not be possible for any one studyto capture succinctly a single set of policyissues that would apply to all national in-formation systems in American society. Thespecific system applications are too diverse,the potentials and problems too complex,and the parties-at-interest and relevant in-stitutional and legal frameworks too dis-parate. Only a few of the many issues ex-amined in this study will be important forany particular system.

Consequently, OTA is also conductingcase studies of three specific national in-formation systems:

1.

2.

3.

an assessment of the National Crime In-formation Center Computerized Crim-inal History System;a preliminary assessment of the role ofthe U.S. Postal Service in electronicmessage systems; anda preliminary assessment of electronicfunds transfer systems.

These case studies will provide a more de-tailed look at the impacts and issues asso-ciated with a specific national informationsystem.


Computers, Information Systems, and Society

Nature of Computer-BasedInformation Systems

Traditionally, computers have beenviewed as super calculators that automateprocesses that were previously performed bypeople sitting at mechanical adding ma-chines. However, computers carry out a widevariety of tasks associated with processinginformation. It is important to understandthe entire range of these capabilities in orderto appreciate the nature and magnitude ofthe potential social impacts of this tech-nology when used in information systems.

Computer capabilities fall into seven maincategories:

1. Data collection. When attached to var-ious sensing devices, computers can de-tect and measure such external physicalphenomena as temperature, time, pres-sure, flow rate, or any number of othervariables. Also, computers can keep arecord of transactions. For example, acomputerized cash register can collectand store information about a sale thatincludes bookkeeping entries, taxes,commissions and inventory, and caneven reorder stock. Some computer-based door locks require individuals tocarry magnetic identity cards. Suchlocks not only can control access butalso can create a record of whose cardwas granted access, when, and for howlong.

Technological advances are beginningto provide computers with the ca-pability to directly process visual andaudio input, thus greatly increasingtheir applicability to data collection.Computers already have a limited abili-ty to recognize human speech, to readdirectly a variety of typewritten formsand handprinted texts, and to detectpatterns in video images. These func-tions will be improving rapidly over thenext decade and will soon appear incommercial equipment.

2.

3.

4.

5.

Information storage. Computers canstore large amounts of information forlong periods of time in an electronicallyreadable form that is easily and quicklyrecoverable. Depending on the par-ticular application, the methods ofstorage vary widely, from signals inelectronic circuitry, to magnetic pulseson tape, to holes in cards. New advancesin memory technology eventually willallow trillions of characters of informa-tion to be stored conveniently andcheaply wherever there is even a smallcomputer. The cost of storing informa-tion electronically will soon be substan-tially lower than the cost of storing thesame amount of information on paper.Information organization. Computerscan be used to rearrange information sothat it is more suitable for particular ap-plications. For example, if the data in atelephone directory were stored in acomputer’s memory, it could be in-verted to allow one to look up a tele-phone number that corresponds to aparticular address. More generally,computers can simplify and restructurevast amounts of raw data to assist peo-ple in drawing significant meanings orconclusions.Calculations. Computers perform arith-metic calculations millions of timesfaster than can human beings. They areused to make numerous simple calcula-tions, such as those required in proc-essing the payroll for a sizable or-ganization; to make sophisticated sta-tistical calculations on large amounts ofdata, such as those for social science re-search; or to perform highly complexscientific calculations, such as thoseneeded for weather research or formodeling fusion energy systems.Communication. Through connectionsover a communication system, com-puters can transmit data around theNation and the world either to humanusers or to other computers, which per-

Ch. l—Summary ● 9

6.

7.

mits the sharing of work and dataamong groups of linked computers(known as computer networking). Pri-vate firms are beginning to offer specialcommunication services to supportcomputer networking. In addition, com-puters make possible the more effectiveuse and management of the communica-tion systems themselves.Information presentation. Computerscan put out information in a variety offorms. Through graphical display, andmore recently through voice response,they can make data readily understand-able and useful to nonexperts. It ispossible to display data and computerschematics on screens in a multicolored,three-dimensional format for design andanalytical purposes. Also, data such asnumbers and statistics can be organizedby the computer in an easy-to-under-stand tabular presentation. Much of theprograming effort in developing modernmanagement information is directedtoward designing ways in which the in-formation generated by the computercan be presented most clearly to themanager who needs it.Control. Computers can be used to con-trol a machine tool or a production linewithout human intervention. Many con-sumer devices—including microwaveovens, automated home thermostats,automobile engines, television sets, andtelephones— incorporate computer con-trols using new microprocessor technol-ogy. Such uses are increasing rapidly.

Future Trends in Computer-BasedInformation Systems

The use of computers during the 1980’swill likely follow the key trends discussedbelow and covered in depth in chapters 13and 14.

● Growth in the use of personal computers.The small computer will become commonboth in the home and in business. Despitetheir small size, these systems will behighly capable–the equivalent of ma-

Photo credit: Texas Insfrurnenfs. Inc.

INSIGHT Series 10 Personal Information Terminal. Standingonly 12 i riches high with a 51A-inch swivel display screen

chines that sold for as much as a milliondollars in the 1950’s. They may appear inthe guise of video games, television sets,or telephones that will also have a com-puter capability available for other pur-poses. This trend will stimulate morewidespread computer literacy in society,and in turn be reinforced by the conse-quent increase in the ability of people toprogram and use computers. The firstgeneration to grow up with computers isnow reaching maturity. These “computerliterate” young adults accept computersas a natural part of their world. Computerdesign and use will be taught more both inschool and as part of adult education, andwill enhance an already thriving marketfor specialized application programs de-signed for small computers.

Expansion in the number and size of com-puter networks. By the end of the decade,most computers, even small ones, will beconnected to a communication network atleast part of the time.

The communication system may bededicated to a single application in whichall the machines on the network performportions of a larger task. Public data net-works, on the other hand, provide anyhome or business computer with access to


●

●

a wide range of data bases or special pro-grams that may be wanted for occasionaluse. Such multiuser national networksthat can be interconnected now exist, andthe number of users is expected to grow ata rapid rate.The trend toward information services.The computer industry has traditionallybeen concerned with selling hardware(desktop, mini, and mainframe computersand related auxiliary equipment). How-ever, current trends in both pricing andthe structure of the market are driving theemphasis toward providing computer-based information services, such as bib-liographic and data base searches, elec-tronic publishing, electronic banking, andthe like. A number of these services willstill require that the user possess a com-puter. However, many will be offered overdata communication lines to homes and of-fices, and will be accessible through amodified (“intelligent”) telephone or tele-vision set. Examples include two-waycable television, videotext, and the AT&TElectronic Information Services experi-ment that provides an electronic tele-phone directory over a telephone line to ahome terminal. Eventually, informationservices of all kinds will dominate the dataprocessing market in terms of dollarvolume.The competition among giant corpora-tions for the data communication servicesmarket. IBM, AT&T, Exxon, and GTE,among others, are preparing to offer avariety of data communication services.Large corporations such as these have ac-cess to the capital required to install thetechnological base for the planned serv-ices, such as communication satellite sys-tems and fiber optic transmission lines. Aseries of recent rulings by the FCC, somestill under challenge, are intended to clearthe way for open competition among theseand other corporations to provide informa-tion services of all kinds over communica-tion lines. Resolution of the pendingchallenges by the courts or by Congresswill have significant implications over the

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●

long term for the data communication in-dustry.*Higher level integration of data services.Many individual networks for servicingspecific corporate and governmentalneeds will continue to be built. Some ofthese networks will become integrated.For example, most airlines, car rentalagencies, and large hotel chains have theirown reservation systems. It is now tech-nically feasible to build an integratedsystem that would provide travel agentsaccess to all of these reservation systemsthrough one desktop terminal.

Similar integrated information systemsare also feasible in insurance, banking,travel, entertainment, law enforcement,commodities exchanges, medical services,and many other sectors that now use sev-eral separate information systems. How-ever, implementation of these systems willdepend on perceived need, economicviability, and other related factors.The software bottleneck. According tomany computer and industry experts, theincreasing capability of computer hard-ware is not being fully utilized due to prob-lems encountered in creating suitable soft-ware programs for these new machines.The major problems are the relativelyslow increase in the productivity of pro-gramers—their cost efficiency—comparedwith that of the hardware, and the dif-ficulties encountered in managing largeprograming projects.

These problems have created bottle-necks in the development of new applica-tions. Computer programing has beenrelatively resistant to productivity im-provement, at least when compared withcorresponding improvements in hardwareperformance. Programing is by naturelabor intensive. Its cost is rising due tothe increased programing requirements ofnew hardware coupled with a shortage ofprograming personnel with the requiredtraining and experience, New mechanisms

*For a detailed discussion, see the OTA report Telecommu-nication Technology and Public Policy, in press.

Ch. 1—Summary ● 11


one-third of the research effort at BellLabs is devoted to the software problem.

The Computer-BasedInformation Society

An information industry analyst recentlyobserved that “every society is an informa-tion society.”* That is, all human organiza-tions, no matter how simple, depend for theirfunctioning on an intangible resource called‘‘information. In any society, informationserves several purposes. It can be, for exam-ple, a commodity of commerce, an indicatorof wealth or power, a basis for making de-cisions, or a source of entertainment.

Several key trends are transforming theUnited States into a computer-based in-formation society:

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●

The tasks being undertaken by the largeorganizations that serve American SOC-ety are growing in complexity. The airtraffic control system handles nearly 20million flights yearly. Every year thefinancial system clears over 30 billionchecks, the U.S. Postal Service deliversover 100 billion pieces of mail, and theInternal Revenue Service (IRS) receivesmore than 140 million tax returns. Theuse of computer-based systems is oneway to cope with this vast and complexinformation flow.The service sector of the economy isgrowing at a relatively faster rate thanthe industrial and agricultural sectors.Many services such as medicine, law,education, and Government involve thetransfer of large amounts of informa-tion. Resistance to productivity im-provements in this sector, which rep-resents a large part of the economy, has

*Anthony G. Oettinger, “Information Resources: Knowl-edge and Power in the 21st Century, ” Science Magazine, vol.209, July 1980, p. 191.

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impeded overall productivity growth.Greater application of information tech-nology has been proposed as a chiefremedy. For this reason, it is highlylikely that in this decade the servicesector will increasingly depend on theuse of computer-based informationsystems.The information sector itself has grownto account for over half of the U.S. workforce. An examination of the trends inthe work force reveals the extent towhich the economy has shifted. The re-sults shown graphically in figure 6 il-lustrate the transitions from an econ-omy dominated by agriculture, to onedominated by manufacturing, to a serv-ice and information economy.

The information sector includes thosewho generate and sell information aswell as those who produce informationtechnology. Included are typewriterand word processor manufacturers,newspaper publishers, and producers offilms and broadway and televisionshows, all of whom are rapidly in-corporating computer-based informa-tion systems into their operations. Theinformation sector also covers informa-tion services and products used by anyorganization for its own internal pur-poses. Examples are internal account-ing and production management, andinventory control systems, many ofwhich are already computerized.Greater international economic com-petition coupled with the decreasingavailability of basic resources are re-quiring industry and Government toboth improve and speed up their deci-sionmaking capabilities. Computer-based information systems are growingin importance for this purpose. Deci-sions about design, marketing, financ-ing, and resource allocation all require amore sophisticated approach to the col-lection and use of information.

Ch. 1—SummarY ● 1 3

Figure 6.— Four Sector Aggregation of the U.S. Work Force by Percent, 1860-1980

(Using median estimates of information workers)

Stage Ill. *- - - - - I n f o r m a t i o n#-

\.“% . Service-\*\ / ‘-”----

#.

/ “% Industry

/ ’

:860 1880 1900 1920 1940 1960 1980

Year

SOURCE Marc V Porat The In formaflon Economy Stanford Unlverslty Inst!tute for CommunlcatlOn Research. report no 27, VOI 1, p 189, August 1976 See ch 4 for

further discussion

The Structure of Information Policy Issues

Information Policy, Law, In the course of this study, OTA identifiedand Regulation 14 major areas of law and regulation* that

affect information systems or are affected byAs these computer-based systems become them. There are undoubtedly many others.

more important to American society, par-ticularly for Government administration, The analysis made by OTA has led to

they create corresponding public policy these findings:

issues. Current policies governing informa- s There are numerous laws and regula-tion systems are a composite of many spe- tions, some overlapping and some po-cific regulations and laws, which are based tentially or actually conflicting, thaton three main factors: directly and indirectly affect the op-

1.

2.

3.

the areas affected or the regulatory con-cerns (privacy, freedom of information,etc.);the affected sector of society (banking,education, Government, etc.); andthe lawmakers and/or rulemakers (Con-gress, the Federal CommunicationsCommission (FCC), State legislatures,the Courts, etc.)

erators and users of information sys-tems, the consumers of information

*These areas are privacy, freedom of information, firstamendment, 14th amendment, due process, communicationregulation (Computer I I decision of the FCC), computercrime, proprietary rights (patent, trademark, copyright),evidence, liability, antitrust, taxation, Government provisionof information, and Government procurement of informationsystems.


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services, and the’ subjects of personalinformation data banks.There appears to be neither a strongtrend nor sentiment at present amongpolicymakers in favor of a uniform Fed-eral information policy that would en-compass all the problems that couldarise from the many possible uses ofdata systems. *There is a lack of focus on informationpolicy as such, and consequently theemerging issues are not being directlyaddressed.**Continuation of the present situationcould inhibit many socially desirable ap-plications of information systems orcould create even more intractable pol-icy problems in the future.

The term “information policy” as usedhere does not suggest that there is or shouldbe a single uniform policy governing all theuses of information systems in both the pub-lic and private sectors. In fact, no such pol-icy exists, nor does one appear to be likely.

“Information policy” does suggest theneed for consideration of the currently con-fusing array of laws and regulations-andtheir strengths, overlaps, contradictions,and deficiencies—within some overall policyissue structure or framework. The structure

*Some recently proposed legislation would establish a com-prehensive approach to certain specific problem areas, e.g.,privacy and freedom of information. See H.R. 2465, 96thCong., “Omnibus Right to Privacy Act of 1979. ” Also the Na-tional Telecommunications and Information Administration(NTIA) of the Department of Commerce has made an effortto formulate—or at least to develop a framework for—national information policies. See Arthur A. Bushkin andJane H. Yurow, The Foundations of United States Informat-ion Policy, NTIA, Washington, D. C., June 1980, and Jane H.Yurow, et al., Issues in Information Policy, Helen A. Shaw(cd.), NTIA, February 1981. See also, Donald A. Dunn, “In-formation Resources and the New Information Technologies:Implications for Public Policy, ” National Science FoundationReport to the President and Members of Congress, The Five-Year Outlook on Science and Technology, vol. II, May 1980,pp. 493-507.

**The “paperwork Reduction Act of 1980” (Public Law96-51 1) enacted by the 96th Congress does set out a morecomprehensive policy and management approach for FederalGovernment information systems, The Act establisheswithin the Office of Management and Budget (OMB) an Of-fice of Information and Regulatory Affairs and assigns tothat Office a broad range of authorities and required actions.

developed by OTA for use in this and relatedstudies is shown in table 1.

System Issues

The policy issues related to informationsystems per se focus on their design, im-plementation, and operation. They generallyare concerned with whether the system per-forms the tasks expected of it with reliabili-ty, with appropriate security, and in an effi-cient and timely manner. These objectivesmainly are of interest to the organizationoperating the system, and place major con-straints on the system designer.

Technical, operational, and reliability fac-tors all can have broader societal sig-nificance even though they originate in theoperational goals of the system itself. In re-cent years, for example, public attention hasbeen focused on areas such as:

● the safety and reliability of the air traf-fic control system;

Table 1 .—Structure of Information Policy Issues

Level of issues Character of issues Example issues

System level Relate to the Government procure-design, implementa- ment policy,tion, and operation Efficiency andof particular in for- economy ofmation systems. operation.

Security of informa-tion systems.

Information level Relate to the hand- Privacy (record-ling of data: collec- keeping). Freedom oftion, storage, use, information regula-and dissemination. tions. Copyright

and patents as re-lated to computerprograms.

Secondary policy Exist independent of Privacy (surveillance).impacts the particular infor- First Amendment

mation systems, but rights.are changed in mag- Fourth Amendmentnitude or character rights.by use of Social vulnerability.technology. Federal State

relations.

Long-term societal Long-range societal Privacy (socialeffects impacts that are not attitudes).

currently reflected Psychological self-in specific policy image of humans.problems, but which Educational needs.may ultimately af - Social-politicalfeet the nature of effects.U.S. society. Cultural impacts.

SOURCE: Office of Technology Assessment, see ch. 5

Ch l—Summary ● 1 5

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the reliability, security, and control-lability of military command and con-trol systems, existing and proposed;the security of large-scale electronicfunds transfer systems; andthe reliability, accuracy, and respon-siveness of the social security informa-tion systems.

There is a strong societal interest in theproper and reliable technical operation ofeach of the systems cited above, and poten-tially high costs to society if they fail.

In format ion I ssues

The three differing fundamental values ofinformation shown in figure 7 motivatemany of the laws and regulations affectinginformation. Individual regulations or lawsusually address only one aspect of informa-tion. Policy issues, then, arise from theinherent tensions between the particularvalues reflected in different laws. Congressis called on to establish balances. These ten-sions are illustrated below:

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Public v. private value. Freedom of in-formation laws (reflecting public value)can conflict with individual or pro-prietary concerns (reflecting rights toprivacy). For example, in serving thepublic interest, Government collects anextraordinary amount of informationabout citizens, businesses, and otherorganizations. Some of this informationtheoretically has been available to thepublic by law for a long time but hasbeen protected, in fact, by the amountof effort required to retrieve it frommanual recordkeeping systems. Auto-mated systems reduce the cost and timebarriers to wider access to these publicrecords, and thereby may accentuatethe issue of the extent to which this in-formation can and should be publiclyavailable.Commercial v. public value. As informa-tion becomes a more valuable com-mercial commodity, increasing tensionsare arising between those who wish tosell it through new information sys-

Figure 7.— Value Triad of Information: Conflict andCompetition Among Private, Commercial,

and Public Value

Privatevalue

y

u- Value c}

\

“9Mad of

informationin society

CommericalCompetition

Publicvalue value

4 *Conflict

Commercial value of Information: Information has been a commod-ity of commerce for centuries Books and newspapers, and in thiscentury the broadcasting Industry, all sell Information. As societybecomes more dependent on Information, its value Increases. Thevery high growth rate of the computer-based information industry il-lustrates this trend.

Private value of information: In an Information society, economiccompetition is often based on access to special Information, suchas a formula for a soft drink, an econometric projection, marketingplans, or geological data. Commercially important information isconsidered by organizations to be proprietary Similarly, individualsoften consider Information about themselves to be private, eitherbecause damage can be done by its disclosure or simply because ofdesiring to be left alone.

Public value of informat/on: American society has always viewed in-formation as having a public value, and has asserted the public in-terest in a free flow of information. Examples include: the publicsupport of Iibraries, schools, and museums; a tradition of academicfreedom and a system of open scholarly publication. the firstamendment guarantees, and freedom of information laws

SOURCE Off Ice of Technology Assessment see ch. 4.

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terns, and those like the publiclibrarians whose traditional role is totreat information as a public good avail-able to all. These tensions may alsostem from the competition betweenGovernment-collected data, made avail-able through freedom of informationlaws, and commercial data services.Commercial v. private value. Commer-cially marketable information may in-vade privacy or proprietary rights, as inthe case of computerized mailing lists


that may be compiled from third-partyinformation sources without the knowl-edge or consent of the individuals in-volved.

Secondary Policy Impacts

Computer-based information systems, byincreasing the quantity of information col-lected, the efficiency of its collection anddissemination, its utility, and its ease ofstorage can cause qualitative changes in thebehavior of Government, individuals, andorganizations as well as in the nature oftraditional conflicts. Thus, the use of auto-mated information systems can have sec-ondary effects on policy problems that haveexisted for years and in many ways are inde-pendent of the technology. Because muchmore information can be obtained, handled,processed, and distributed so much faster,old problems are not merely exacerbated,but new ones are created.

For example, the increased scale andpresumed efficiency of computerized crim-inal justice recordkeeping intensifies the ten-sion society has always experienced betweenthe needs of law enforcement and the in-dividual rights of citizens. Similarly, thetendency of the technology to encourage cen-tralized record systems creates problems ofFederal-State relationships, a particularlytouchy issue in law enforcement. Some ex-perts believe this centralization trend couldreverse through the use of of smaller com-puters with distributed data bases.

Long-Term Societal Effects

Social scientists engaged in futures stud-ies have suggested that the information rev-olution, spurred both by advances in com-puters and communication and by thechanging role of information in U.S. society,will have profound long-term effects asdramatic as those caused by the invention ofthe printing press.

Just as the printing press, by stimulatingliteracy and speeding the flow of ideas, sup-ported the Renaissance and the transitionfrom medieval society to the age of en-lightenment, so the new information sys-tems could profoundly transform the socialand political environment of U.S. and worldsociety. Indeed television and sophisticatedcomputer-based polling technology havealready had observable effects on the po-litical processes in the United States. ThirdWorld leaders calling on UNESCO for a“new world information order” express thebelief that information technology will havea central influence on the social andeconomic development of their countries aswell as on international relationships.

This overview study has not attempted toaddress in detail these broader questions.However, given the potential for significantsocial change, research funded publicly,privately, or in some jointly developed proj-ects could provide valuable insights into thelong-term societal effects of computer-basedinformation systems and related public pol-icy choices.

Public Policy IssuesThe overview study examined the national and regulatory and other issues. See chap-

information system issues judged by OTA ters 6 through 12 for further discussion.to be among the most important and likelyto warrant congressional attention over the Innovation, Productivity, andnext few years. These issue areas include: Employmentinnovation, productivity, and employment;privacy; security; Government management Innovation, the continual generation ofof data processing; society’s dependence on new technological ideas and products andinformation systems; constitutional rights; services based on those ideas, is a prime req-

Ch. 1—Summary ● 1 7

uisite for a healthy industry in a high tech-nology field like computers and informationsystems. Innovation in information tech-nology improves the productivity of the in-formation industry itself and also offers thetools for improving the productivity of manyother sectors of the economy.

Based on anticipated advances in artificialintelligence, robotics, computer control, andinput-output technology over the next fewyears, computer-based factory automationwill make a substantial contribution to im-proving manufacturing productivity. Wordprocessing and other forms of office automa-tion are already improving clerical produc-tivity and may have similar potential formanagerial productivity. Intelligent cashregisters and automated checkout are direct-ly improving the productivity of retail clerksand indirectly the productivity of retail man-agement (e.g., accounting, inventory control,procurement). The full impact is yet to befelt of these and other applications that areonly now starting to be installed in themanufacturing and service sectors of theeconomy. However, they are likely to help re-store an upward trend in the Nation’s pro-ductivity.

Photo credit: IBM Corp.

The I EM scanner uses holography, a technique for creatingthree-dimensional images, to read data on packages

From a larger societal perspective, the in-creased productivity brought about by ad-vances in computer technology may be re-flected not only by greater output per em-ployee, but perhaps also in terms of betterproduct quality, improved work environ-ment and job satisfaction, and longer termsocial benefits such as improved job safetyand greater opportunities for on-the-joblearning and career advancement.

Congress will be confronted by a numberof issues concerned with innovation in com-puter technology and its effects on produc-tivity and employment:

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R&D support. Innovation in computerand information technology depends oncontinued, aggressive R&D. Many U.S.corporations in the information in-dustry, realizing that their success de-pends on continued innovation, have es-tablished their own research centers.Several Federal agencies* support com-puter R&D, although the major part ofdevelopment support comes from theDepartment of Defense and relatedagencies. An important issue is whetherresearch in the applications of computertechnology to problems in the private(civilian) sector—in such areas as edu-cation,** health, transportation, envi-ronmental quality, and job safety—isreceiving adequate Federal support,given the critical nature of computertechnology to the Nation’s well-being.Vitality of academic computer science.Basic research in computer science islargely carried out in universities. Be-cause of the close connection betweenapplied technology and basic research,the vitality of the computer industry isin part dependent on the vitality ofacademic computer science. However,university departments of computer sci-ences are experiencing problems in ob-

*Including the National Science Foundation, NationalAeronautics and Space Administration, and Department ofEnergy.

**Information Technology and Education is the subject ofanother OTA assessment in progress.


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taining the faculty, facilities, and fundsneeded to do the research and to trainnew experts. This situation is par-ticularly critical in systems design andsoftware engineering.Impacts on employment. It is still un-certain whether the productivity in-creases brought about by computertechnology will increase or decrease theoverall employment level. Structuralshifts in the economy are likely to occursince any innovation which creates newproducts and new industries will elim-inate some jobs only to create others.Even if new jobs are created or old onesredefined, not all workers will find iteasy or desirable to shift. Some em-ployees may be unwilling or unable toadapt themselves to the new technologyor may be untrainable in the new pro-cedures.Support for computer impact research.The area of employment impacts is agood example of the need for computerimpact research, a new field developedover the last decade by computer andsocial scientists. To date, however,university groups and others have ex-perienced difficulty in securing financialsupport, in part because this subjectdoes not fit comfortably into traditionalscientific research programs. Computerimpact research is not pure computerscience; neither is it classifiable as pure-ly social or political science. The resultsof such research could supply valuableinput to the kinds of public policy issuesidentified in this overview study.International competitiveness. Comput-er and communication technologies aremoving ahead so rapidly that productscan become obsolete within a few years.Although the United States holds asubstantial positive balance of trade(and employment) in certain areas of in-formation technology, the maintenanceof this balance depends in part on con-tinued R&D and innovation and on sup-

portive public policies. * Because ofaggressive import competition fromEurope, Japan, and Canada, even do-mestic markets are vulnerable to anyfaltering in the technological lead.

Privacy

Privacy-related issues dealing with thecollection, dissemination, and use of per-sonal information are likely to remain on thecongressional agenda for a number ofreasons:

● An omnibus v. a selective privacy pol-icy. The Federal Government hasdeliberately chosen up to now to reactto privacy issues associated withrecordkeeping on a case-by-case basisrather than through omnibus legisla-tion, which would cover all data sys-tems both public and private in whichpersonal information is maintained.

With the selective approach, Congresswill be considering a long series of pri-vacy bills. To catch up with currentcomputerized recordkeeping practiceswill require a substantial legislative ef-fort. An immediate concern is to de-velop privacy rules for computer ap-plications in banking, medicine, socialand medical research, credit, insurance,and criminal justice. Privacy is also like-ly to be a major issue in the develop-ment of electronic mail.

Congress may need to consider alter-native approaches to privacy policy.

● New technologies, new problems. Newapplications for computer and commu-nication technology, such as an auto-mated securities exchange, in-home in-formation services, electronic pub-lishing, and the automated office, maycreate new environments for privacy

*Relevant policy instruments include taxation, antitrust,and standards, among others. U.S. industrial competitive-ness in the international electronics and computer marketsis the subject of another OTA assessment in progress.

Ch. 1—Summary ● 19

policy issues to arise. As Governmentagencies such as the Department ofJustice, IRS, or the Social SecurityAdministration begin to use the latestgeneration of information technologyfor their recordkeeping activities, pri-vacy problems that were not specifi-cally addressed in previous legislationmay have to be dealt with by Congress.

● Secondary use of personal information.A fundamental assumption underlyingmuch of the privacy debate in the1970’s was that collecting personal in-formation is in the nature of a trans-action—the individual yields personalinformation in exchange for some bene-fit. Thus, much of the fair practice doc-trine centers on the requirement thatthe recordkeeper abide by obligationsimplicit in that transaction. However,individuals will increasingly be encoun-tering computerized systems that col-lect and store information about themwithout their knowledge or consent.Very little law exists pertaining to theownership or disposition of such in-formation, even when its use may becontrary to the individual’s perceptionof his or her interests.

● Microprocessors and surveillance. Thepotential now exists for the develop-ment and marketing of a wide variety ofmicroprocessor and computer/commu-nication devices either specifically de-signed or capable of being used for thesurveillance of individuals without theirconsent. Microprocessor-based lockscan provide detailed records of thewhereabouts of anyone in a building.Devices called “pen registers” provide asimilar capability for monitoring tele-phone traffic. Abuse of this technologyfor illicit purposes may become aserious problem. Even seemingly legit-imate applications (e.g., employermonitoring of employee phone calls todeter nonwork-related conversations)

may, if abused, raise in new forms theclassic issues of civil rights versus bothlaw enforcement and the rights of em-ployers to monitor their employees.

Security

The technology for securing computersystems from theft, sabotage, natural haz-ards, and the like is improving steadily, andusers are becoming more aware of the needto protect information. However, the in-creasingly complicated computer-basedinformation systems being designed andbuilt make secure operation more and moredifficult.

Among the several difficult issues involv-ing computer security that are likely to con-front Congress, the following appear to bethe most significant:

c Protection of Federal systems. Federalinformation systems control the dis-bursement of an enormous amount ofmoney. The Social Security system it-self disburses over $2 billion per week.Other Federal systems contain infor-mation that could be used directly or in-directly to make profitable financial de-cisions, e.g., information on Federalmonetary policy, on commodity mar-kets, and on energy resource estimates.Still others contain sensitive in-formation relating to personal privacyor national security. All would be highlyattractive to theft, manipulation, oreavesdropping.

These are not the only threats to Fed-eral computer systems that Congresswill need to consider. A more subtlethreat is a system’s potential diversionby the bureaucracy from its intendeduse; for example, the use of computer-ized criminal histories for employmentor licensing purposes. As the Gov-ernment continues to automate, prob-lems of bureaucratic accountability and


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the responsibility for oversight will con-front Congress with the need to betterunderstand and more closely monitorthe use of large Federal informationsystems.Protection of vital domestic informationsystems. There is a Federal respon-sibility for certain information systemsthat, although privately operated, arefundamental to social well-being. Thesecurity and reliability of automatedsystems for nationwide bank checkclearing, electronic message systems,and computer-based commodity trad-ing, for example, would all be under thepurview of Congress. The vulnerabilityof such systems is of governmental con-cern because of the harm that a majorsystem failure could cause to the Na-tion’s economy and to its citizens.Development of data security and cryp-tographic capability. The Federal Gov-ernment, due to its traditional concernfor the protection of military and dip-lomatic communications, has a high de-gree of expertise in the field of datasecurity. For example, the NationalBureau of Standards is developing com-puter security guidelines and standardsfor use by Federal agencies. The firststandard to emerge from this effort isthe Data Encryption* Standard (DES)for protecting data communication.

While the DES is public, much of theFederal expertise is either classified orin the hands of highly sensitive or-ganizations such as the National Securi-ty Agency. The appropriate role of theFederal Government has not been de-fined in transferring this knowledge,supporting computer security researchin both the public and private sectors,setting standards for non-Federal sys-tems, and certifying security tech-nology.

The lack of such policy definition isvisible in the current debate overGovernment control of cryptographic

*Encryption is the coding of a message so that it is onlyunderstandable to a receiver who knows the secret decodingprocedure and/or key.

technology. In this debate, the needs ofthe private sector for increased com-munication security, and hence for theexistence of a civilian commercial cryp-tographic capability, are set against theperceptions of the defense communitythat such development threatens na-tional security concerns by putting sen-sitive information in the public domain.A related issue is the desire in theacademic community for the freedom toconduct research on the mathematicsunderlying cryptography.

Government Management ofData Processing

In the early days of computing, the Fed-eral Government as a user was a principalstimulus to the development of the field.Although a few instances of Federal exper-tise at the leading edge of computer applica-tions remain, the Federal Government israpidly falling behind the private sector inits use and management of up-to-date com-puter and information technology. Such alag would penalize Government operationsin two ways:

1. potentially lost opportunities to use thenewest technology to improve the efficiencyand effectiveness of Government programs;and

2. increased cost and decreased reliabilityresulting from operating systems that arebecoming obsolete, from archaic manage-ment procedures, and from burdensome pro-curement restrictions.

Cheaper computing hardware, the emer-gence of data communication-based sys-tems, and new software techniques arechanging the way computers are used in in-dustry. The next 10 years will see significantmovement in the private sector towardautomating the flow of information in of-fices, toward experimenting with new man-agement structures based on high-volumedata communication, and toward auto-mating decision support systems for use byhigher management. To the extent thatthese applications fulfill their promise of


improvement in both the quality and produc-tivity of management, the Federal Govern-ment would be remiss in not making use ofthem where appropriate.

The most recent legislative action to ad-dress this problem is Public Law 96-511,known as the Paperwork Reduction Act of1980, which establishes central oversight inthe Office of Management and Budget of theinformation policies and practices of the ex-ecutive branch. Perhaps most important,this Act emphasizes the basic need for re-structuring the way information resourcesand supporting technologies are managed inthe Government. This represents a new andas yet untested approach by giving manage-ment of information resources similar im-portance to that traditionally assigned tomanaging financial and personnel resources.

Many other issues and questions also needattention from this broader perspective. Forexample:

● Automated bureaucracy. There is aneed to better understand the effects oflarge-scale information systems on theinternal organization and managementof Government agencies and on Federaldecisionmaking. What effects do thesesystems have on the location of respon-sibility, the quality of the decisions, thenature of due process for clients af-fected by those decisions, and the ac-countability of the bureaucracy tohigher-leve policymakers in the ex-ecutive branch and to Congress itself?

● Social values and goals. The process bywhich appropriate social values andgoals are reflected in Federal informa-tion systems design needs clarification.Major new systems will need to beevaluated for their effects on privacy,security, constitutional rights, andmany other issues that are not normallythe concern of the designer or operatorof an information system.

Three fundamental approaches areavailable to deal with social value ques-tions:1. Congress could assess the potential

social impacts of each new system de-

2.

3.

sign that is proposed on a case-by-case basis.Congress could codify a social impactpolicy concerning all Federal informa-tion processing systems. An appro-priate agency could be designated asresponsible for seeing that all newsystem designs are evaluated in rela-tion to that policy.Congress could continue to examineagency proposals system by system,but would base its evaluation on asocial impact framework encompass-ing a set of principles for the designand operation of Federal informationsystems.

Whatever the approach, it will be nec-essary for Congress to balance the need tospeed up design and procurement of Federalsystems, against the requirements that taxmoney be spent as effectively and asequitably as possible and the necessity toconsider carefully the societal impacts ofthese systems. !

Society’s Dependence onInformation Systems

The nature of risk is being changed bymuch of the new high technology on whichmodern society depends—jumbo commercialairlines, nuclear powerplants, oil super-tankers, or large computer-based informa-tion systems. In general, because new tech-nologies can be designed to operate morereliably than the ones replaced, the risk thatany particular mechanism may fail has beenreduced. However, should an accidental ordeliberate disruption occur, its cost can bemuch larger, even catastrophic. Further-more, when society becomes highly depend-ent on the reliable functioning of a single in-tegrated technological system or small col-lection of such systems, the possibility of a“domino-like” collapse of several of the in-dividual connected units could also bedisastrous.

This evolution to dependency can be seenalready in the reliance of safe public air


transport on the continuous operation of thecomputerized air traffic control system. * Inthe commercial sector, large stores andbanks rely on the smooth uninterrupted op-eration of their computer systems.

Thus, as society moves toward electronicfunds transfer systems, widely availableelectronic mail service, and other large ex-tensively used information systems, thefollowing factors warrant consideration:

The ways in which public policy canhelp to allocate and balance the riskssociety may encounter from national in-formation systems against the benefitsit may receive, under conditions wherefailure rates appear to be low but poten-tial losses may be high should a failureoccur.The ability of society to retain the op-tion to end its dependence on a par-ticular information system if it hasunanticipated undesirable effects; inother words, to avoid the possibility ofbecoming “locked in” to the use of cer-tain information systems once they areinstalled.The capability of providing alternativesto persons or institutions choosing notto accept perceived risks in a new in-formation system.The ways in which technology can beutilized-to reduce the risks, for exampleby introducing additional system re-dundancy (alternative paths betweenpoints in the system, distributed databases, backup computers). The risks in-herent in U.S. dependence on a nation-wide, interconnected telephone system(which itself is rapidly being com-puterized) are minimized by the largenumber of circuit switching centers andparallel trunklines.

Large complex information systems con-tain millions of logical connections and arecontrolled by programs that themselves canbe composed of millions of instructions. Con-sequently, it is difficult to calculate their

*The airport and air traffic control system is the subject ofanother OTA assessment.

reliability and to predict the failure rate ofany particular part of the system, as well asthe effect of a failure on the operation of theentire system. New research in risk analysisis needed to address the problem of esti-mating risks under these conditions.

Constitutional Rights

Little legal precedent exists, in manycases, for applying constitutional law to theissues raised by computer-based informationsystems. This overview study identified sev-eral areas of constitutional rights that maybe affected by information systems, as il-lustrated below:

The first amendment guarantees freedomof religion, speech, the press, peaceableassembly, and the right to petition forredress of grievances.

A principal first amendment issuefacing the Government may be how toencourage the maximum freedom of ex-pression–fostering the “marketplace ofideas’ ‘— in new electronic media thathave been tightly regulated in moretraditional forms. For example, thescarcity of frequency spectrum andchannel capacity that provided a basisfor regulation of broadcast televisionmay not apply to new versions of TVsuch as cable, direct-to-home satellite,and videotext.Another first amendment issue may begenerated by extensive data collectionand possibly surveillance by Govern-ment and private organizations thatcould, in fact, suppress or “chill”freedoms of speech, assembly, and evenreligion by the implicit threats con-tained in such collection or surveillance.These threats might be directed asmuch at the “ l istener” as the“speaker.” Clearly, automated informa-tion delivery systems possess a muchgreater capability for recording, stor-ing, and analyzing in detail the flow ofinformation from all sources into homesand offices, than do manual svstems


such as bookstores, newspapers, andthe like.

The fourth amendment protects the per-sons, houses, papers, and effects of in-dividuals against unreasonable searches andseizures by the Federal Government.

● Fourth amendment issues may developfrom:—the use of personal and statisticaldata contained in automated informa-tion systems as a justification forsearch and seizure;

—the search and seizure of informationper se as personal property, particular-ly in electronic form; and

—the use of automated information sys-tems as a tool for search and seizureoperations.

An electronic mail cover illustrates the lat-ter type of fourth amendment issue. A non-electronic mail cover requires approval bythe Postal Inspection Service but not asearch warrant because only the outside ofan envelope is examined. In an electronicmail system, however, no distinction may ex-ist between the “outside” (or address) andthe “inside” (or contents) of a message.Therefore, it maybe difficult to distinguish amail cover from a wiretap, which would re-quire a warrant issued by a court upon prob-able cause, unless some form of coding wasused to “seal” an electronic message as anenvelope seals a physical one.

The fifth amendment guarantees that aperson may not be compelled to be a witnessagainst himself or be deprived of life, liberty,or property without due process of law.

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A fifth amendment issue could arisefrom the use of personal or corporatecomputer data that have been collectedby the Government for one purpose asevidentiary material in unrelated crim-inal or regulatory cases.Another fifth amendment issue coulddevelop from the delivery of Govern-ment services by computer-based infor-mation systems. For example, verylarge systems that “mass produce” de-

cisions in such areas as health benefits,student loans, or tax returns may havesubtle biases “built in” to the programor code of the computer. These systemsmay react quickly to what the computerrecognizes as “normal” applications,but reject “unusual” claims. If, as aconsequence, citizens are subjected toan unacceptable amount of hassle, delayand/or error, the program or code usedby the computer to define “normal” orthe entire information system may be-come subject to due process challenge.

The sixth amendment guarantees, amongother things, the right of a speedy and publictrial by an impartial jury.

● A sixth amendment issue may be raisedby the growing use of computerizeddossiers of potential jurors along withcomputer models for predicting jurorbehavior. At this time, computer-basedjury selection is very expensive and itsvalue is controversial. However, futurecomputer technology and social scien-tific techniques may make this applica-tion cheap and improve its effective-ness. If so, the entire concept of an “im-partial” jury may be challenged.

The 14th amendment guarantees that aState cannot deprive any person of life, liber-ty, or property without due process of lawnor deny any person within its jurisdictionthe equal protection of the laws.

c Fifth and 14th amendment issues maydevelop from a similar application ofcomputer-based social science and sta-tistical models to predicting criminalbehavior and to aid in such tasks as ap-proving credit, determining insurabili-ty, or hiring and promoting employees.Essentially, individuals may be deniedrights, privileges, and benefits based,not on past performance, but on aprediction of future tendencies. For ex-ample, society cannot imprison a personthat a computer model predicts maysomeday rob a bank. But should thatknowledge be “probable cause” to

24 ● Computer-Based National Information Systems: Technology and Public Policy lssues

monitor such a person closely or denyemployment?

Regulatory Boundaries

As computer-based information systemsevolve, they challenge traditional conceptsof boundaries—physical or social—that arereflected in the law and regulatory policy.The integration of computer and commu-nication technologies creates systems thatcross boundaries between nations, States,and organizations. The issue of transborderdata flow discussed in chapter 12 exemplifiesthe kinds of international problems created.Others include the following:

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Interstate conflict of laws: When Stateshave conflicting laws involving informa-tion or information processing, for ex-ample, property laws that cover com-puter data bases, an integrated datasystem that exists in a number of dif-ferent States can raise difficult ques-tions of legal jurisdiction.Federalism: Linking Federal data sys-tems with State and local systems com-plicates problems even further. Issuesof federalism could arise with systemscontaining data on criminal history,taxation, welfare, education, medicalcare, and drug abuse, among others.Antitrust: Policy issues may arise withrespect to whether large integrateddata systems using shared facilitiescreate monopolistic barriers to new en-trants or are mechanisms for control ofthe market, or whether they encouragecompetition by reducing the cost of ac-cess for smaller firms.

Information technology is changing formso fast that it is tending to outstrip theworking definitions of devices and servicesthat serve as the basis for law and regula-tion. These definitional problems relate bothto the technology itself, and to the productsand services that depend on it.

● Computers or communication: The bestknown example is the continuing at-tempt by the Federal Communications

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Commission to establish what servicesand what technologies are already‘‘communications, thus regulated, andwhat are ‘‘computer’ services andtechnologies, thus not regulatable.Their second inquiry on these ques-tions, which began in 1976, only re-cently resulted in an opinion that is nowunder court challenge. Even if thedefinition is accepted, there is no reasonto believe that the problem has beenpermanently resolved.Branch banking: Many States havelaws that either prohibit or tightly regu-late branch banks. An issue that hasbeen widely debated is whether theautomated extensions of banking (e.g.,automatic teller machines or pay-by-phone services) constitute “branches”in the usual meaning of the law.The status of electronic mail: Electronicdata transmission has opened a majorpolicy question about the definition ofmail. As with the computer/communica-tion issue above, this definition is sig-nificant because it places a class of serv-ices under one or another set of reg-ulations. Unlike many other countriesthat have combined postal and telecom-munication services under one nationalagency, the United States has pursuedcompletely different approaches to reg-ulating each service category. Elec-tronic mail, in its various forms, pro-vides a new service with features ofboth manual delivery and telecommu-nication, and may pose new and dif-ficult regulatory questions.

Other Issues

Four other issue areas were identified asimportant although not analyzed in greatdetail:

1. Computer crime: Crime directed againstcomputer-based information systems orin which these systems are used as toolsfor criminal activity.


2.

3.

Transborder data flow: Problems thatarise from differing national attitudesand laws regarding the increasing flowof data and interconnection of informa-tion systems across national bound- 4,aries.Information gap: The possibility thatsome individuals or groups would bedenied access to information services

vital to their survival in an informationsociety because of technological illit-eracy, lack of economic resources, orother reasons.Computer software protection: The con-cern that continuing uncertainty aboutcopyright and patent protection forcomputer software is significantly im-pairing software R&D and innovation.

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