Dylan Matthews has an interesting piece up in Vox, 'How effective altruism let SBF happen'. I feel very conflicted about it, as I think it contains some criticisms that are importantly correct, but then takes it in a direction I think is importantly mistaken. I'll be curious to hear others' thoughts.
Here's what I think is most right about it:
There’s still plenty we don’t know, but based on what we do know, I don’t think the problem was earning to give, or billionaire money, or longtermism per se. But the problem does lie in the culture of effective altruism... it is deeply immature and myopic, in a way that enabled Bankman-Fried and Ellison, and it desperately needs to grow up. That means emulating the kinds of practices that more mature philanthropic institutions and movements have used for centuries, and becoming much more risk-averse.
Like many youth-led movements, there's a tendency within EA to be skeptical of established institutions and ways of running things. Such skepticism is healthy in moderation, but taken to extremes can lead to things like FTX's apparent total failure of financial oversight and corporate governance. Installing SBF as a corporate "philosopher-king" turns out not to have been great for FTX, in much the same way that we might predict installing a philosopher-king as absolute dictator would not be great for a country.
I'm obviously very pro-philosophy, and think it offers important practical guidance too, but it's not a substitute for robust institutions. So here is where I feel most conflicted about the article. Because I agree we should be wary of philosopher-kings. But that's mostly just because we should be wary of "kings" (or immature dictators) in general.
So I'm not thrilled with a framing that says (as Matthews goes on to say) that "the problem is the dominance of philosophy", because I don't think philosophy tells you to install philosopher-kings. Instead, I'd say, the problem is immaturity, and lack of respect for established institutional guard-rails for good governance (i.e., bureaucracy). What EA needs to learn, IMO, is this missing respect for "established" procedures, and a culture of consulting with more senior advisers who understand how institutions work (and why).
It's important to get this diagnosis right, since there's no reason to think that replacing 30 y/o philosophers with equally young anticapitalist activists (say) would do any good here. What's needed is people with more institutional experience (which will often mean significantly older people), and a sensible division of labour between philosophy and policy, ideas and implementation.
There are parts of the article that sort of point in this direction, but then it spins away and doesn't quite articulate the problem correctly. Or so it seems to me. But again, curious to hear others' thoughts.
Follow-up to my previous comment: I was responding to the post written here, not the underlying article in the above comment. I've now read the article, and broadly agree with it (esp on the significant over-focus on philosophy and controversial ideas within EA, and how this is harmful), but think that the claims about governance are badly argued and don't hold up, even if the conclusions may be correct
The specific part of the article on the importance of good, professional governance in foundations, is something I feel more confused about, though Matthews' was not arguing that EA being better governed would have prevented FTX collapsing, more that it would have reduced general harm to EA + limited SBF's power.
Like, sure, I think SBF's various foundations being further from him would have been a good idea a priori (and even better in hindsight!). But I don't actually see how the FTX disaster is evidence for this, beyond being evidence of SBF's poor judgement and bad intentions. Like, the issue at hand is not that SBF funded a bunch of pandemic prevention etc! I don't think it's even that he was involved in the foundation's decisions ("foundation staff would sometimes cc SBF on a pitching email"). I think it's that funding was unstable and got pulled out unexpectedly/there's risks of clawbacks, it harmed the reputation of those that received it, that the funding was gained immorally (though evaluating this is confusing to me, since some of their money was gained legitimately, some was from stealing from customers), that it's harmed the reputation of the movement + causes he donated to, and that the giving plausibly allowed him to launder his reputation in a way that gained him more credibility and less suspicion to perpetuate the fraud. None of these are that related to how involved he was in the foundations!
And, finally, I'd argue that the Future Fund was actually much more de-centralised and democratic than eg OpenPhil, given their enormous regranter program. It wasn't quite just giving people money and letting them do whatever they wanted with it, but I'd say that it made giving much more diverse and accounting for many more different perspectives than any other foundation I'm aware of. (I think this comes with many downsides, to be clear, though I'm net a fan of the regranter program. Just that criticising it as SBF being too involved seems silly)