Good Cop Bonds: how to incent bad cops to do good

Also published at: Substack

How do you stop police and other law enforcement officials from abusing their power?

It's a hard problem. On the one hand, cops must necessarily be able to use force to stop and apprehend criminals.

On the other hand, cops sometimes abuse their power. See the work of Radley Balko and Billy Binion for numerous examples of police malfeasance.

And once a police force becomes corrupt, it's very difficult to root out the corruption. Corrupt officers are incentivized to punish or drive out the good cops and prevent any new ones from entering the force. Reporters and whistle-blowers must risk persecution at the hands of the police if they publicize police wrongdoing. Politicians who try to root out corruption face similar persecution, plus the loss of campaign funds, voters, and police endorsements.

The Good Cop Bond System : incenting bad cops to do good

"Good Cop" Bonds (GCB's) are intended to work around these problems. The GCB system consists of the following three components: the "Good Cop Foundation", the Police Brutality Survey, and the "Good Cop Bond" market.

  1. The Good Cop Foundation (GCF) is a 501c3 non-profit devoted to measuring and reducing police brutality.

  2. As part of its mission, the GCF would administer the Police Brutality Survey (PBS), a regular, anonymous survey of randomly sampled members of a community, similar to the National Crime Victimization Survey.

    Every quarter, the PBS would measure "police brutality incidents" (PBI's), such as Excessive Force, Prisoner Rape, Extortion, Asset Forfeiture, Warrant-less Search, Racial Profiling, Planting Evidence, Speed Traps, Lying Under Oath, Extortion, Bribery, etc. The PBS would also measure community improvements, such as reduced accident rates / crime / prisoner population, etc. The survey data would be then used to create the Police Performance Index (PPI), which combines the data into a single overall measure of police performance.

  3. The GCF would also raise money for "Good Cop" bonds (GCB's). GCB's are tradable performance bonds that pay out to the owners if the cops meet their performance targets, as measured by the PPI. They're a variant of social policy bonds invented by economist Ronnie Horesh.

"Good Cop" bonds could be funded from a variety of sources: private individuals, nonprofits, city governments, companies, etc.

Though the system will work better if government officials endorse the program, the system doesn't require government buy-in to work. GCB's only require the willingness of at least some people to:

For example, let's suppose that you're a black person, and you believe the police are harassing black people in your city unjustifiably. You could issue bonds that pay out the owner $100 each if the the number of PBI's in your city declines by 50% from year to year. Buyers of the GCB's would be incented to reduce police harassment. Maybe the best way to reduce police harassment would be to give some of them to the police commissioner. He would then be incented to crack down on bad behavior and/or fire bad cops.

The City of San Francisco might issue bonds to the SFPD officers themselves, as part of their pay package. At the beginning of the year, the city could give the police force bonds that will pay out if they meet their PPI target But if the police fail to meet their target, the bonds would pay into the SF Whistle-blower's Protection Fund. The restitution fund would pay for things like rape counseling, housing/food assistance, medical bills, attorney fees, and so on for people who whistle-blow against corrupt cops/officials.

The bonds could be issued with different time frames, from short term to long term. Say 1 year, 3 years, 5 years, etc. They might also be set up to payout based on rolling measures to smooth out random spikes. For example, a bond might be set up to pay out based on the rolling average of the last three years of survey data, instead of the just the past year.

What are the challenges of implementing the GCB system?

What are the expected benefits?

How can the GCB system be implemented?

With the growth of anonymous, decentralized DAO / smart contract systems such as Darkfi, users will be able to create and operate such markets in a decentralized, censorship resistant fashion. The Darkfi system is still at an early stage, so it's probably best not to rely on its anonymity protections too heavily just yet. But once it's been vetted a bit more fully, it should be posible to issue, trade, and pay out GCB's with little risk of government persecution.

If you'd like to help make GCB marketplaces happen faster:

  1. Share this newsletter with folks you think are likely to be supportive. I will be sending out updates as the DarkFi system evolves.

  2. Follow @darkfisquad on Twitter.

  3. Help test / document the Darkfi DAO/smart contract system.

  4. If technically inclined, help write the smart contacts for GCB's.

  5. Start a Good Cop Foundation in your area.

  6. When they become available, donate to GCB's in your area.

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