t-mec: desafíos y oportunidades en la economía digital@itifdc. t-mec: desafíos y oportunidades en...
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@ITIFdc
T-MEC: Desafíos y Oportunidades en la Economía Digital
Daniel CastroVice President, ITIF
March 12, 20202
@castrotech
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About ITIF
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Independent, nonpartisan research and education institute focusing on intersection of technological innovation and public policy.
Formulates and promotes policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress
World’s top think tank for science and technology policy, according to the University of Pennsylvania’s authoritative Global Go To Think Tank Index
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The Pacing Problem
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Pace
of C
hang
e
Time
Technological ChangePolitical Change
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Rate of Digital Adoption Exacerbates Pacing Problem
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Past and Future Waves of Digital Innovation
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Mainframe Economy
Network Economy
Internet Economy Data Economy Algorithmic Economy
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Data is Transforming the Economy
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Min
ing
Auto
Rep
air
Ranc
hing
Hea
lthca
re
Man
ufac
turin
g
Farm
ing
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Building Blocks for Success in the Digital Economy
Data Scale Global Platforms
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Changing Business Models
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Policies to Support the Digital Trade Agenda
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•Intermediary liability•Remove illegal content
•Market access•Fair treatment•Small packages
•Competition policy•Access & connectivity•Digital literacy
•Data protection•Free flow of data•Open data•Data poverty
Data Scale
PlatformsGlobal
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GDPR – A GLOBAL “GOLD STANDARD”?
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GDPR Has Failed
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GDPR Has Failed
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GDPR Has Failed
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Percent of EU respondents who “Tend to Trust” the Internet, 2009-2018
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GDPR Has Failed
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0 20 40 60 80 100 120 140
Netherlands
Ireland
Denmark
Iceland
Finland
Data Breaches per 100,000 People (2019-2020)
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GDPR Has Failed
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James Pavur
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Why Privacy Laws Fail – Wrong Principle
Precautionary Principle: Until proven safe, the government should limit the use of new technologies.
Focus is on minimizing risk
Innovation Principle: The vast majority of new technologies are beneficial and pose little risk, so government should encourage them.
Focus is on maximizing benefits
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Why Privacy Laws Fail – Misunderstand Nature of Data
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Oil Data
Rivalrous Fungible Constant returns
Non-rivalrous Non-fungible Diminishing returns
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Why Privacy Laws Fail – Too Soon
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Balancing Consumer Protection and Innovation
1. Maximize Consumer Welfare, Not Just Consumer Privacy
2. Address Real Privacy Concerns
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Enabling the Free Flow of Data
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Policies to Support the Digital Trade Agenda
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•Intermediary liability•Remove illegal content
•Market access•Fair treatment•Trade facilitation
•Competition policy•Access & connectivity•Digital literacy
•Data protection•Free flow of data•Open data•Data poverty
Data Scale
PlatformsGlobal
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Open Access to Markets
Do not discriminate against other nations
Treat local and foreign goods and services the same
Prohibit market access restrictions, including source code disclosure
Eliminate measures requiring service firms to maintain a local presence as a condition for supplying a service
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Trade Facilitation
World Bank Enterprise Survey:
– 20% of firms in Latin America (11% of firms in Pacific Alliance countries) identify customs and trade facilitation as a major constraint to SMEs. (vs. 4% of firms in advanced economies)
Intra-Regional Shipping Delays
– 23 days in Latin America vs. 9 days in advanced economies
WEF: Improving trade costs to half of global best practice would increase exports in Latin America by 30%.
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Policies to Support the Digital Trade Agenda
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•Intermediary liability•Remove illegal content
•Market access•Fair treatment•Small packages
•Competition policy•Access & connectivity•Digital literacy
•Data protection•Free flow of data•Open data•Data poverty
Data Scale
PlatformsGlobal
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Establish Intermediary Liability Protections
Defines responsibility of intermediaries for content posted by users.
Goals:
– Reduce harm
– Incentivize innovation
– Promote free expression
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Regional Opportunities for Improving Digital Trade
Percent of B2C e-commerce (compared to retail) in LatAm half that of North America and Europe
Percent of global e-commerce share small (4%)
Very low average # of online transactions per capita
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Competing Models for Digital Trade
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Digitally enabledLarge marketsCommon languageInnovation-friendly rulesInteroperabilityOpen markets
Digitally enabledLarge marketsCommon languageInnovation-friendly rulesInteroperabilityOpen markets
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A Digital Trade Agenda for Latin America
Available electronically (English and Spanish) at www.itif.org.
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Nigel CoryAssociate Director,
Trade Policy
Daniel CastroVice President