IGF 2017 WS #14 Internet Governance 2017: Realizing SDGs through Policies Enabling Digital Trade

Short Title: 

Realizing SDGs through Policies Enabling Digital Trade

Proposer's Name: Ms. Barbara WANNER
Proposer's Organization: U.S. Council for International Business
Co-Proposer's Name: Ms. Karen MCCABE
Co-Proposer's Organization: IEEE
Co-Organizers:
Ms. Karen McCabe, Technical Community, IEEE
Ms. Christine Arida, Government, National Telecom Regulatory Authority, Government of Egypt


Session Format: Round Table - 90 Min

Proposer:
Country: United States
Stakeholder Group: Private Sector

Co-Proposer:
Country: United States
Stakeholder Group: Technical Community

Speaker: Hosuk Lee-Makiyama
Speaker: Arrow Augerot
Speaker: Hossam ElGamal
Speaker: Riccardo Masucci
Speaker: Christopher Yoo
Speaker: Makoto Yokozawa
Speaker: Rachel Bae
Speaker: Christopher Wilson
Speaker: Esther Peh
Speaker: Helani Galpaya
Speaker: Karen McCabe Karen McCabe
Speaker: Carolyn Nguyen

Content of the Session:
The Internet-enabled transformation to the global economy has advanced cross-sectoral development, commercial opportunities for small businesses in developing countries, innovation, exchange of knowledge and opinions, and greater societal inclusion. The power of ICTs and digital innovations have the potential to help realize many of the UN Sustainable Development Goals (SDGs) in the coming decade if they can be effectively utilized.

This promise depends on stakeholder opportunities to invest and compete, sufficient infrastructure, and cross-border flows of data and information. These essential elements have been challenged by some government measures that aim to promote domestic industry, innovation, and/or privacy and security, but have the potential to limit growth of the digital economy –acting as barriers to the use of the Internet and ICTs to advance global development. A key task with respect to Internet governance, therefore is to identify policies that enable digital trade to serve as an engine for realizing the SDGs and societal inclusion goals.

Trade stakeholders should draw upon expertise in the Internet governance community to map and understand these potential enablers and barriers to digital trade. Internet governance stakeholders, for their part, should engage in constructive dialogue with the trade community to discuss how trade policy might be deployed to address Internet barriers. An important complement is to build user trust in the online environment through interoperable privacy and security frameworks aimed at optimizing the benefits of digital trade. In addition, business acknowledges a responsibility to channel its digital innovative advancements and trade-related benefits into initiatives aimed at bridging global development gaps.

Speakers will address the following agenda:

1. The Evidence Base: What research tells us about the economic developmental benefits of digital trade

2. Digital Trade Rules: Instruments for economic development and societal inclusion

3. Localization Rules: Impact on Realizing the SDGs

4. Fostering Users’ Trust in the Digital Economy: Addressing privacy/security concerns while optimizing digital trade benefits

5. Business Responsibility: Channeling trade benefits to education and economic opportunities

6. Best Practices in Internet Governance: Making the connection between Internet governance and digital trade to realize sustainable development and societal inclusion


Relevance of the Session:
This workshop will be directly related to the 2017 IGF theme as it will enable representatives from all stakeholder groups and diverse regions to explore how to “shape their digital futures” by finding the appropriate policy balance that leads to greater economic prosperity through digital trade but also ensures a trusted and open Internet environment that fosters social inclusion and societal benefits.

The 2030 Agenda for Sustainable Development reflects a growing understanding that ICTs, the spread of global inter-connectedness, and an open Internet have great potential to enable economic development and new forms of cross-border commercial activities that will bridge the digital divide and expand societal inclusion.

The WSIS+10 Outcome Document echoes this theme, noting that ICTs have increased the efficiency and ingenuity of all sectors, and that cross-border flows of digital information and technologies have proved critical to realizing breakthroughs in business, agriculture and science.

Workshop speakers will examine how a constructive approach to digital trade and effective use of ICTs will serve as an engine for realizing many of the Sustainable Development Goals (SDGs) and expanding societal inclusion.


Tag 1: Internet & ICTs for the Sustainable Development Goals
Tag 2: Digital Trade
Tag 3: Data Localization

Interventions:
Speakers have been selected to ensure both a diversity of stakeholder groups as well as different regional perspectives. Also important, the speakers will bring rich substantive backgrounds in international trade, ICTs as enablers of trade and economic growth, global technical standards, and privacy and security frameworks.
1. Rachael Bae, OECD (IGO-France), and Hosuk Lee-Makiyama, ECIPE (civil society-Belgium), will provide IGO and civil society perspectives on what research tells us about the economic and developmental benefits of digital trade

2. Hossam ElGamal, Government of Egypt (Africa group), Esther Peh, Mission of Singapore to the WTO (government-Asia Pacific ), Prof. Makoto Yokozawa, Kyoto University (civil society- Asia Pacific, Helani Galpaya, LIRNEasia (civil society-Sri Lanka), and Arrow Augerot, Amazon (private sector-USA) will offer points of view from Asia, Africa, and the USA about how digital trade rules may serve as important instruments for economic development and societal inclusion.

3. Karen McCabe, IEEE (technical community-USA), Helani Galpaya, LIRNEasia (civil society-Sri Lanka), Hossam ElGamal, Government of Egypt (Africa group), Rachel Bae, OECD (IGO-France), and Carolyn Nguyen, Microsoft, (private sector-USA) will provide both developed and emerging economy perspectives about how localization rules, often employed for privacy and security-related reasons -- and which range from mandates for certain technical standards to data storage and server requirements -- can have adverse and unintended consequences to economies and citizens alike creating very insecure conditions and discouraging investment, innovation, and growth.

4. Riccardo Masucci, Intel (private sector-Europe), Prof. Christopher Yoo, University of Pennsylvania Law School (civil society-USA), Chris Wilson, 21st Century Fox (private sector-USA), and Prof. Makoto Yokozawa, Kyoto University (civil society-Asia Pacific) will offer diverse perspectives on policy approaches that address security and privacy concerns while optimizing the benefits of digital trade.

5. Arrow Augerot, Amazon (private sector-USA), Karen McCabe, IEEE (technical community-USA), Carolyn Nguyen, Microsoft (private sector-USA), and Chris Wilson, 21st Century Fox (private sector-USA), will propose some new approaches to corporate social responsibility, which recognizes the importance of channeling the benefits of digital trade into new educational and employment opportunities to enable ever-larger shares of the work force to become active participants in the Internet economy.

6. All of the speakers will provide diverse stakeholder and regional perspectives on best practices in Internet Governance that will enable digital trade to serve as an engine for realize the SDGs and societal inclusion.

Diversity:
Each stakeholder group is represented in the roster of confirmed speakers -- private sector, government, civil society, technical community, and IGO. We also have sought to ensure diverse regional representation, drawing speakers from the African region, Asia Pacific region, Europe, South Asia, and the United States.

Co-Organizers not only come from three stakeholder groups -- private sector, technical community, and government -- but also reflect perspectives of the USA and a member of the African regional group. In addition, all three co-organizers are female, demonstrating gender balance.

Among the speakers, online moderator, and substantive rapporteur, there also is abundant evidence of gender balance and regional diversity. Two of the female speakers are from the Asia Pacific and South Asia; the online moderator is a promising young ICT professional from South Asia.

First-time IGF session speakers include: Arrow Augerot, Amazon (private sector, WEOG); Rachel Bae, OECD (IGO, WEOG); and Esther Peh, Government of Singapore (government, Asia Pacific).

Onsite Moderator: Mr. Eric Loeb, AT&T
Online Moderator: Ms. Sharada Srinivasan, University of Pennsylvania Law School
Rapporteur: Ms. Judith Hellerstein, Hellerstein Associates

Online Participation:
The pre-IGF preparatory process will entail reaching out to and confirming the participation of remote discussants, particularly from emerging economies, who the Moderator will invite to offer comments or pose questions via the Remote Moderator following each agenda topic. In addition, the co-organizers will explore with Roundtable participants the potential for establishing remote participation hubs, particularly in emerging economies, delving into technical capabilities and needs that could be addressed by the business community.

For the workshop itself, online participants will have a separate queue managed by the Online Moderator. Questions and comments will be rotated between the online queue and the in-person queue at the microphone. The Moderator will work closely with the Online Moderator during the pre-IGF preparations to establish effective means of communication between them to ensure the timely insertion of a remote question/comment. The Online Moderator will be strongly encouraged to participate in pre-IGF training provided by the IGF Secretariat as well as the preparatory teleconferences, the latter to thoroughly familiarize herself with the workshop substance. The Online Moderator also will be "backed up" by the workshop organizer, so that any unexpected technical problems or communication issues with the Moderator can be addressed expeditiously.

Discussion facilitation:
The Moderator was selected not only for his substantial expertise in Internet governance and digital trade, but also for his extensive experience moderating Roundtable discussions at global conferences on multi-faceted topics involving 10 or more speakers.

Drawing on this background, the Moderator will work with the co-organizers and speakers in a series of pre-IGF preparatory teleconferences to orchestrate a coherent "flow" to the discussion, which also respects the 90-minute time constraint. Speakers will be asked to identify two or three key points they want to make to address their specific topic; the Moderator, in turn, will interweave these points into a series of questions aimed at encouraging both expert commentary as well as discussion among the speakers and between the speakers and in-person/on-line participants. The Moderator will preview these questions and anticipated "flow" of the session with speakers in advance of the IGF so speakers can sharpen their comments and, if needed, gather additional statistics or supporting evidence. PowerPoint presentations will be discouraged. The emphasis will be on fostering an inclusive and informed conversation between the workshop speakers and with both in-person/online IGF participants.

The pre-IGF preparatory process also will entail (1) confirming on-site discussants, who will attend the workshop and be prepared to ask a relevant question as a means of "breaking the ice" and encouraging other audience questions; and (2) reaching out to and confirming the participation of online discussants, particularly from emerging economies, who the Moderator will invite to offer comments or pose questions via the Online Moderator.

Conducted a Workshop in IGF before?: Yes
Link to Report: http://www.intgovforum.org/multilingual/index.php?q=filedepot_download/4098/219

Additional Reference Document Link: http://www.oecd.org/sti/ind/Item%207_2%20Susan%20Stone_TAD_localisation%20barriers.pdf

Background Paper

Additional Speakers: 

Ellen Blackler, The Walt Disney Company (private sector-USA)

Agenda: 

1. The Evidence Base: What research tells us about the economic developmental benefits of digital trade

2. Digital Trade Rules: Instruments for economic development and societal inclusion

3. Localization Rules: Impact on Realizing the SDGs

4. Fostering Users’ Trust in the Digital Economy: Addressing privacy/security concerns while optimizing digital trade benefits

5. Business Responsibility: Channeling trade benefits to education and economic opportunities

6. Best Practices in Internet Governance: Making the connection between Internet governance and digital trade to realize sustainable development and societal inclusion
 

Report: 

Session Title: Realizing SDGs through Policies Enabling Digital Trade

Date:  December 19, 2017

Time: 16:40-18:10

  • Session Organizer: Barbara Wanner, USCIB
  • Chair/Moderator: Eric Loeb, AT&T
  • Rapporteur/Notetaker: Judith Hellerstein, Hellerstein & Associates
  • List of Speakers and their institutional affiliations: Esther Peh, Singapore Mission to UN/Geneva; Rachel Bae, OECD; Karen McCabe, IEEE; Ellen Blackler, Disney; Helani Galpaya, LIRNEasia; Audrey Plonk, Intel; Christopher Yoo, University of Pennsylvania; Carolyn Nguyen, Microsoft; Hossam ElGamal, Government of Egypt; Makoto Yokozawa, Keidanren/Kyoto University
  • Key Issues raised (1 sentence per issue):
    1. The Evidence Base: What research tells us about the economic developmental benefits of digital trade
    2. Digital Trade Rules: Instruments for economic development and societal inclusion
    3. Localization Rules: Impact on Realizing the SDGs
    4. Fostering Users’ Trust in the Digital Economy: Addressing privacy/security concerns while optimizing digital trade benefits
    5. Business Responsibility: Channeling trade benefits to education and economic opportunities
    6. Best Practices in Internet Governance: Making the connection between Internet governance and digital trade to realize sustainable development and societal inclusion
  • Please describe the Discussions that took place during the workshop session (3 paragraphs):

Developing the Evidence Base - Eric Loeb (AT&T) inquired what research tells us about the economic development impact on trade and SDGs. Christopher Yoo (UPENN) spoke about the need to collect some hard data on connectivity. Looking at other ways of collecting hard evidence. Need hard evidence showing how Connectivity advances goals where there is a gap in the literature trying to do what we can to push this forward. Carolyn Nguyen (Microsoft) noted that more than 50 percent of trade is digital services and that digital services are essential in traditional sectors such as manufacturing and agriculture. In particular, the use of digital services in agriculture to measure moisture, determine fertilizer and pesticide levels, and so forth, will promote attainment of SDG-2, which aims to conquer world hunger.

Measurement Challenges--The OECD has been trying to develop metrics for growth and digital trade but found that there are distinct challenges in developing metrics to quantify the economic impact of digital trade because of the very nature of the digital economy. There is a lack of clarity on what digital trade actually means. They have worked with other groups within the OECD to try and get interoperable data sets so can offer some good comparisons. Developing framework of measurement so we can be in a position to capture the statistics and decide the percentage of international trade is digital trade.

Struggle to Develop Trust -- There is a continued struggle between security and being viewed as trusted. To be secure and trustable we need to be open and transparent, but the WTO is neither so this is where the problems are for other groups. Civil society is not speaking with a unified voice hence there is no clear message or many conflicting messages and this is the problem. It is thus difficult to understand who is representing what. This makes figuring out a solution that would be amenable to both parties difficult. How would we be able to solve it on a multi stakeholder manner. This is problematic when the WTO is not viewed as multistakeholder. Ellen Blacker (Disney) stated that entertainment is what motivates people to use the Internet. Growth of entertainment options drives the growth of the net. However for continued growth need to have payment systems that are effective and this requires setting up the policy framework that will allows for growth.

  • Please describe any Participant suggestions regarding the way forward/ potential next steps /key takeaways (3 paragraphs):

Localization Rules--Topic of data localization was very important especially in light of the GDPR and Governments interest in privacy and security. There was a discussion of the cost benefits of Separating out personal data from business data and at what costs. This is especially problematical with cross border data. How to you separate out personal data from business data and how do you abide by local laws geared to ensuring the privacy and security of data when data is cross border. OECD has been working on an impact analysis to better understand the shock to the economic system when legal and legislative issues change how this is used and kept. Carolyn Nguyen (Microsoft) talked about the needs of different stakeholders which necessitate the need for different governance requirements and what is the best way within the current rules and trade agreements to optimize the data flows.  Karen McCabe (IEEE) stated the best way to optimize the data flow is to put a focus on standards and the role standards bodies play in trade. Chris Yoo (UPENN) stated that today’s regulation is the new trade war, it’s not about tariffs anymore. Is that going to stop trade from happening and direct investment from happening?. No. Is it going to make it harder? Yes.

Balancing Security/Trust with Business Needs --Christopher Yoo (UPENN) highlighted the issue that it is impossible to get 100% data localization or even 100% security and this should not be our focus. What we need is a system that balances the needs of security with those interests of the government, the private sector, and consumers. We need to recognize that law enforcement has some valid needs but also so do consumers and need to find one that has the proposer balance between those two. We also need to find a system that creates the right type of incentives for investment and innovation. As this will allow for increased economic growth, there needs to be the right incentives for the private sector to invest and create products and services which grow the economy and enable all to meet the sustainable development goal. The current processes and regulations are outmoded and the costs to meet them are expensive. If these can be streamlined it could help become more efficient in their data collection and thus lower the cost of production of new products.

Innovative Regulatory Approaches: Esther Pei (Government of Singapore) described how the Government of Singapore has shifted its mindset on regulation to help enable innovation. For new technologies and business models about which regulators do not yet know enough, the government has established “regulatory sandboxes” to facilitate experimentation in a very contained environment for a limited period. Singapore has used “sandboxes” for the fledgling FinTech sector. Through the sandbox, the monitoring authority relaxes regulation requirements on a case-by-case basis for the duration of a very specific project. The Singapore Government is pleased with how this approach has fostered innovation, but also enabled regulators to learn more about the technologies before determining if, how, or when the sector should be subject to some regulation

Gender Reporting

  • Estimate the overall number of the participants present at the session:   Audience size: 45-50 people
  • Estimate the overall number of women present at the session:  About equal mix between men and women
  • To what extent did the session discuss gender equality and/or women’s empowerment?  Gender equality and women's empowerment was not the subject of this panel and so these issues were not discussed.
  • If the session addressed issues related to gender equality and/or women’s empowerment, please provide a brief summary of the discussion: Not applicable, because gender issues were not the subject of this discussion.

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