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DigitalizationPOLICY PAPER 2020

TRANSFORMING FOR INCLUSIVE GROWTH

Version 4

Table of Contents

Foreword by the Taskforce Chair.........................................................3Executive Summary............................................................................4Introduction.....................................................................................10

Overall approach: 11Recommendation 1: Enabling resilient digital infrastructure (IoT, 5G) and fostering cyber security readiness of individuals, MSMEs, large businesses and public institutions. 11Recommendation 2: Advancing all aspects of artificial intelligence 22Recommendation 3: Laying the foundations for smart cities 35Recommendation 4: Driving digital inclusion and growing digital skills 47Conclusion: 58

Annex..............................................................................................59Schedule of Taskforce Exchanges......................................................60Distribution of Members...................................................................61Taskforce Members..........................................................................62

Timea SUTO, 05/12/20,

COMPARISONUpdated to reflect changes of headers Rec 1.

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Foreword by the Taskforce Chair

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3 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E R

TASKFORCE CHAIR PICTURE

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Executive Summary

Recommendation 1: Enabling resilient digital infrastructure (IoT, 5G) and fostering cyber security readiness of individuals, MSMEs, large businesses and public institutions.

Policy Action 1.1: Implementing a global roadmap for the enablement of digital infrastructure – The G20 should

Adopting/Building on existing global principles, e.g. ISO/IEC 27000 for a stable and predictable regulatory environment to set the foundations for a global digital infrastructure and convert into national legislation.

Build on national and global action plans to fully achieve the newly agreed upon Connect 2030 Agenda and the SDGs, and ensure governments report periodically to the ITU on progress.

Create a digital platform for public-private partnerships to advance the development of digital infrastructure that serves consumers’, businesses’ and governments’ needs.

Boost investment in digital infrastructure to reduce the connectivity and access gaps between individuals, organizations and countries while supporting the build-out of digital networks with robust capacity to handle demand surges and meet the needs of society in times of greatest need.

Incentivize digital infrastructure companies to develop profitable business models and make digital access more affordable through investment support e.g. tax reduction or tax reliefs to provide the opportunity for digital access to all.

Policy Action 1.2: Developing robust cyber strategies against cyber-attacks for individuals, MSMEs, businesses and governments - The G20 should

Promote a national ecosystem to foster collaboration amongst governments, businesses and universities/research centers to gain a clear understanding and endorsement for criteria regarding the trustworthiness in the business environment, e.g. transparency, strong ethical practices and proven track record of adherence to cybersecurity principles.



COMPARISONNew text added



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Implement a multi-stakeholder approach and establish principles for a global platform for the prevention of, incident management during and deduction of learnings from cyber-attacks.

Promote a catalogue of minimum recommended mandatory cybersecurity standards based on a risk-based approach including built-in cyber security controls, regular testing of technologies and penalties for not addressing known cybersecurity vulnerabilities ensuring that those standards are also implementable for Micro, Small and Medium Enterprises (MSMEs) to ensure cyber readiness.

Provide incentives such as tax reliefs for businesses investing in cyber security

.

Policy Action 1.3: Investing in Human Capital in the field of cyber security and protecting communities from cyber threats - The G20 should

Recognize the importance of national and global educational platforms on all aspects of cybersecurity for citizens, businesses and governments.

Drive information and communication campaigns from government on the dangers of cyberattacks and prevention measures. such as European Union Agency for Cybersecurity (ENISA) or OECD Global Forum on Digital Security for Prosperity.

Support the involvement of independent standards organizations in certifying online products and applications to build trust of consumers and businesses in digital products.

Develop an international information platform on cybersecurity education degrees that candidates can use to inform themselves on career options.

Agree on key elements for a common curriculum of training for cybersecurity professionals by education institutions as well as guidelines for training on the job by companies.

Increase awareness of cyber insurance coverage and promote a collective understanding of the challenges and opportunities of cyber risk insurance.

Recommendation 2: Advancing all aspects of artificial intelligence (AI)–

Policy Action 2.1: Creating a favorable and trust-building regulatory environment for usage of AI and data – The G20 should



COMPARISONRemoved a previous bullet point, that stated:Creating an international cybersecurity readiness rating for organizations

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Create AI national action plans to ensure responsible stewardship and implementation of trustworthy AI based on the voluntary OECD AI principles endorsed by G20 leaders.

Build upon the work of the OECD AI Policy Observatory to strengthen the multidisciplinary, evidence-based and multi-stakeholder dialogue around analysis of public policy on AI.

Promote accountable frameworks for the protection of data privacy and data safety across nations so that beneficial uses of AI are preserved while risks of privacy harms are assessed and mitigated consistent with local legal requirements.

Support regulatory sandboxes for AI applications to advance public sector regulation and innovation

.

Policy Action 2.2: Educating businesses, governments and society on artificial intelligence – The G20 should

Support public information campaigns with visibility and funds that communicate businesses and society’s needs for AI e.g. cancer diagnosis in order to increase trust and support the use of AI.

Show political will to implement AI use cases in the public sector with support of the private sector, e.g. use of AI virtual assistant to manage customer calls in social welfare institution.

Encourage universities to elevate AI to a full degree as well as introduce shorter courses on AI for secondary and tertiary education institutions to ensure that sufficient trained professionals are available for research, development and operation of AI applications.

Commit to create national employee online learning programs that convey rules of ethics and safety to employees using AI applications and make passing the online course a prerequisite for these jobs.

Policy Action 2.3: Advance AI benefits for all – The G20 should Encourage businesses and research institutions to create data sets and

analytics that represent a wide range of different societies and so that AI can benefit people and the planet by driving inclusive growth, and contribute towards a fair and just society.

Collaborate with the OECD AI policy observatory to define measures that ensure the spread of the benefits of AI into countries and areas of society



COMPARISONRemoved “that have been educated on the OECD AI principles”




COMPARISONRemoved previous bullet point, that stated:Build upon Osaka Track’s Data Free Flow with Trust (DFFT) initiative to create an interoperable mechanism for nations to share data on agreed upon purposes.


COMPARISONParagraph rephrased from:Pursue development of interoperable regulations governing standards for good data stewardship, e.g. adherence to data privacy, safety and sharing guidelines (e.g. API based data access) across nations, so that individual data protection laws remain in place while data at a population level, machine data and anonymized data is leveraged for training of Machine Learning (ML) algorithms.


COMPARISONRemoved “and action”



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that have been disadvantaged in access, e.g. women and girls, the elderly and vulnerable groups, rural regions, developing countries and MSMEs.

Recommendation 3: Laying the foundations for smart cities –

Policy Action 3.1: –Installing the key building blocks for smart cities to succeed – The G20 should

Create and communicate a global definition of what smart cities are. Work towards similar technical requirements to enable innovation for

smart cities, e.g. interoperable standards for Building Information Modelling (BIM) to enable a shared infrastructure.

Strengthen cooperation among all those involved in the creation and running of smart cities and smaller smart city elements such as smart buildings on the basis of the G20 Global Smart Cities Alliance global policy framework and guiding principles.

Give clear frameworks for the protection of data privacy and data safety across nations so that the benefits of sharing data among stakeholders of smart cities can be preserved while risks of privacy harms are assessed and mitigated consistent with local legal requirements.

Drive the modernization of the smart city back office by strengthening top-level planning for information technology infrastructure such as networks, computing power, storage and platforms, and encourage relevant stakeholders to share solutions and best practices.

Policy Action 3.2: Increasing societal acceptance of smart cities – The G20 should

Co-fund public communication campaigns to communicate the benefits of smart cities (e.g. climate-friendly, inclusive, safe and healthy) and the advantages of efficient utilization of emerging technologies in day-to-day life.

Support bottom-up initiatives and open source libraries that allow local citizens to participate in the development of smart cities from scratch.

Maximizing the use of data at population level such as traffic flows for smart mobility while taking into account the existing regulations around data privacy, data protection and security of individuals, e.g. individual movement patterns.



COMPARISONParagraph rephrased from:Give clear guidelines for cross-border data collection, transfers and data sharing among all stakeholders of smart cities to enable economic data sharing and analysis.


COMPARISONRemoved a previous bullet point, that stated:Make public-sector, private sector and personal anonymous data available to research institutions for advancement of ML algorithms, prevention of data bias and ensuring a wide application of AI.



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Actively promote light house smart city projects through government institutions such as garbage collection, public lighting and sanitation, to advance the adoption of the Smart City model by citizens.

Define measures to promote the application of smart city technology in the fields of safer transportation, efficient (and environment-friendly) energy use, medical care, education and healthy ageing and provide access to convenient, efficient, low-cost and personalized services so that the benefits of smart cities can spread to less advanced economies and regions.

Policy Action 3.3: Supporting municipalities in the rollout of smart city elements, e.g. smart buildings – The G20 should

Encourage municipalities and smaller communities to cooperate among smaller entities of smart city elements within one municipality, e.g. advancement of smart towns, smart villages or smart building hubs.

Create a global information and engagement platform to inform municipalities on the different options for investments in and financing options in smart city infrastructure today and in the future.

Engage in private public partnerships for necessary but less profitable deployments where solely private investments are not sufficient.

Recommendation 4: Driving digital inclusion and growing digital skills –

Policy Action 4.1: Overcoming the digital divide – The G20 should Support partnerships and platforms of high quality educational

programs that teach individuals of all countries, regions, gender, socioeconomic status, vulnerable groups and ages how to utilize digital services including how to be protected from misinfirmation, online exploitation and violent extremism.

Promote multistakeholder partnerships to combat cyber violence and create safe digital environments for all.

Support the digitization of government services to increase public adoption and facilitate business operations especially for MSMEs while ensuring that all stakeholders have the capabilities to use these services.

Policy Action 4.2: Introducing and advancing innovative methods for



COMPARISONRephrased from:Join together in a global taskforce with the private sector to develop policies to combat cyber violence, especially towards girls and women , and create safe digital environments for all.








COMPARISONRephrased from:Define measures to strengthen the innovative application of the new generation of information technology, promote its application…

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digital education – The G20 should Reform education systems in order to better provide the skills for the

future of work (stronger emphasis on Computer Science and other STEAM subjects) as well as teaching students using digital solutions.

Encourage and co-fund educational establishments such as vocational training colleges and private sector companies especially MSMEs to offer “nano-degrees and trainings” that are tailored to specific digital tasks of jobs and emphasize life-long learning and foster the use of dual accreditation via academic qualifications and industry certification.

Develop a national digital education strategy that employs a range of tools and approaches including upskilling and reskilling on-the-job to to bridge the gap between the skills the workforce has to offer and the jobs available in the job market.

Policy Action 4.3: Providing more digital job opportunities to women – The G20 should

Create awareness on how to reduce barriers and wage gaps for women in global and national tech and digital companies especially in leadership positions together with the private sector.

Set up a dedicated fund together with the private sector such as the female founders’ fund that supports women to become founders of tech and digital companies.

Establish training programmes, networks and support communities to develop the leadership, knowledge and skills of women entrepreneurs and women working in the digital sector.





COMPARISONRephrased from:Create national action plans to reduce barriers and wage gaps for women in global and national tech and digital companies together with the private sector especially in leadership positions.


COMPARISONRephrased from:Develop a national education strategy that employs a range of tools and approaches from digital workforce initiatives, including requalification, on-the-job training and job-sharing, to bridge the gap between the skills the workforce has to offer and the jobs available in the job market.



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Introduction

Digitalization affects every aspect of our lives. It pushes the boundaries of human abilities. It can improve services and help address a wide range of policy challenges, including healthcare, agriculture, tax, transport, education, climate change, and public governance. Over 60% of global GDP will be digitized by 2022.1 Digitalization also accelerates progress towards the attainment of the Sustainable Development Goals (SDGs). 103 of the 169 SDG targets can be directly influenced by digital technologies such as digital access, faster internet, cloud, the internet of things (IoT), cognitive, digital reality, and blockchain.2

However, we have to ensure that the benefits of digitalization reach all aspects and members of society. Three aspects have to be considered: Access: 3.5 billion people still remain offline and are therefore, unable to directly reap digital dividends.3 The Digital divide ranges across multiple dimensions – age, income, gender geography.Enablement: As the speed of digital transformation is much faster than earlier technological revolutions, urgent action is needed to prepare everybody for a digital future.Regulation: Regulatory frameworks for digital technology and digital interactions are needed. Concerns over data privacy and security remain a key factor.

>> Work in Progress <<

1 WEF (2018), Digital Transformation Initiative2 GESi (2019), Global e-Sustainability Initiative3 ITU (2019). Individuals using the internet 2005-2019 (retrieved from website 3rd of April 2020)



COMPARISONReplaced “the workforce” with “everybody”

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Overall approach: >> Work in Progress <<

Recommendation 1: Enabling resilient digital infrastructure (IoT, 5G) and fostering cyber security readiness of individuals, MSMEs, large businesses and public institutions.

Overview

Policy Action 1.1 Implementing a global roadmap for the enablement of digital infrastructure

Policy Action 1.2 Developing robust cyber strategies against cyber-attacks for MSMEs, businesses and governments

Policy Action 1.3 Investing in Human Capital in the field of cyber security and protecting communities from cyber threats

Context

Digital connectivity plays a crucial role in increasing prosperity around the world. Many studies have verified the beneficial impact of greater broadband penetration on the growth of GDP. An International Telecommunication Union (ITU) study reviewing several other studies stated that for every 10% increase in penetration, the contribution to GDP growth ranged from 0.25% to 1.38%.4 A World Bank study even found that a 10% increase in penetration was correlated with a 1.35% and 1.19% increase in GDP for developing and developed countries, respectively.5 GDP Growth spills over to other macroeconomic factors such as small business growth and job creation. Likewise, there exists a positive relationship between the application of digital technologies and quality of life. Problems in health, education, basic financial services6, government services, access to information and knowledge, traffic, energy, agriculture, resource management and disaster prevention can be helped by digital technologies.7

The number of internet users rises constantly. The global digital population rose to 4.1 billion in 2019 from 2 billion in 20108. Global online penetration rate is

4 ITU (2012), Impact of Broadband on the Economy 5 Scott (2012), Does broadband Internet access actually spur economic growth?6 For details on benefits of giving access to financial services to unserved and underserved see B20 Finance and Infrastructure Taskforce Policy Paper (2020), Policy recommendation 37 WEF (2016), Internet for All Framework Accelerating Internet Access Adoption 8 ITU (2019). Individuals using the internet 2005-2019 (retrieved from website 3rd of April 2020)


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57% with North America and Northern Europe both having internet penetration rates of 95% among their populations. [See Exhibit X]

EXHIBIT XInternet Access of G20 countries


Source: ITU

As the number of users and digital products rises, cyber threats are becoming a larger threat to society reaping the benefits of digitalization. Governments, businesses and citizens are more and more affected by data breaches, identity theft and the disruption of operations and critical infrastructure. Cyber-attacks and data fraud or theft are perceived as one of the top five risk by the WEF Global Risk survey in the last three years with 82% of survey respondents expecting the risk of cyber-attacks to rise9. Studies also suggest that cybercrime is costing the world more and more – up from $6 trillion annually by 2021, up from $3 trillion in 201510. Data breaches are becoming larger for businesses (e.g., the Yahoo hack affected 3 billion records) and11 public institutions (e.g., the Pentagon hack affected 1.8 billion records). Cyber-attacks are also becoming more frequent and complex (e.g. WannaCry affected 230.000 computers)12. [See Exhibit x]

EXHIBIT XOverview Cyber-Attacks 2010-2018


9 WEF (2019) Global Risk Report10 Cybersecurity Ventures (2019). 2019 Official Annual Cybercrime Report11 DataLossDB.org and BCG analysis12 Panda security (2017) PandaLabs Report


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Source: BCG Analysis (2019)

Business and government should thus focus on the following three areas of policy:

(1) Enabling a resilient digital infrastructure(2) Developing robust cyber strategies against cyber-attacks (3) Expanding awareness of good cyber practice and cyber hygiene

Policy Action 1.1: Enabling resilient digital infrastructure (IoT, 5G) and fostering cyber security readiness of individuals, MSMEs, large businesses and public institutions. - The G20 should

Adopting/Building on existing global principles, e.g. ISO/IEC 27000 for a stable and predictable regulatory environment to set the foundations for a global digital infrastructure and convert into national legislation.

Build on national and global action plans to fully achieve the newly agreed upon Connect 2030 Agenda and the SDGs, and ensure governments report periodically on progress.

Boost investment in digital infrastructure to reduce the connectivity and access gaps between individuals, organizations and countries while supporting the build-out of digital networks with robust capacity to handle demand surges and meet the needs of society in times of greatest need.

Create a digital platform for public-private partnerships to advance the development of digital infrastructure that serves consumers’, businesses’ and governments’ needs.


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Incentivize digital infrastructure companies to develop profitable business models and make digital access more affordable through investment support e.g. tax reduction or tax reliefs to provide the opportunity for digital access to all.

The increased use of outsourcing, cloud services and shared services as well as the increasing digitization of organizations and value creation, and the many emerging technologies driving both the global economy and societal development, such as Smart Health, and Autonomous Driving are putting an additional strain on the existing digital infrastructure. In this paper, we define digital infrastructure as the telecommunication networks such as 5G as well as IoT.

The delivery of continuous, high-speed wireless connectivity in a cost-efficient way by telecommunication providers will be crucial to achieve a beneficial spread of these technologies across society. As massive investments in digital infrastructure, e.g. for 5G rollout are needed, businesses and investors require stable and predictable regulatory environments to be able to commit the large investment sums required for new digital infrastructure. The G20 could set the foundations for a global digital infrastructure by building on existing global principles, e.g. ISO/IEC 27000 and aim to convert requirements into national legislation.Since 2015, the G20 countries have made several commitments aimed at supporting the development of information and communication technologies. In Antalya, in 2015 they acknowledged “threats to the security of and in the use of ICTs, risk undermining our collective ability to use the Internet to bolster economic growth and development around the world” and committed to “bridge the digital divide” and “promote security, stability, and economic ties with other nations. 13 In 2016, in Hangzhou the G20 countries committed “to achieve innovation-driven growth and the creation of innovative ecosystems, we support dialogue and cooperation on innovation, which covers a wide range of domains with science and technology innovation at its core”.14 18 out of 20 countries have fully complied with this commitment.15

In the following year, in Hamburg they mentioned the need to “ensure that all our citizens are digitally connected by 2025 and especially welcome infrastructure development in low-income countries in that regard” and the need “to foster favorable conditions for the development of the digital economy”. 16 18 out of 20 countries have fully complied with the latter commitment.17

13 G20 Leaders Declaration (2015, November 16) Antalya, Turkey14 G20 Leaders Declaration (2016, September 5) Hangzhou, China15 G20 Hangzhou Summit 2016 Final Compliance Report (2017)16 G20 Leaders Declaration (2017, July 8) Hamburg, Germany17 G20 Hamburg Summit 2017 Final Compliance Report (2018)





COMPARISONReplaced “enabling” with “predictable”






COMPARISONRemoved artificial intelligence

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In 2018, in Buenos Aires they to maximize the benefits of digitalization and emerging technologies for innovative growth and productivity, we will promote measures to boost micro, small and medium enterprises and entrepreneurs, bridge the digital gender divide and further digital inclusion, support consumer protection, and improve digital government, digital infrastructure and measurement of the digital economy.” 18 17 out of 20 countries have fully complied with this commitment. 19

As a significant number of Targets from the ITU Connect 2020 Agenda have been achieved [See Exhibit X], governments and businesses now need to focus on building national and global action to achieve the Connect 2030 Agenda for Global Telecommunication/ICT Development and the potential of digital infrastructure to contribute towards the Sustainable Development Goals (SDGs):The ITU strategic plan clearly shows linkages with the following SDGs:

SDG 9 Industry, Innovation and Infrastructure and in particular Target 9.c increase access to information and communications technology

SDG 17 Partnership for the Goals as a means of implementationExpanding ICT Infrastructure will also have an impact on several other SDGs:

SDG 1 No Poverty SDG 3 Good-Health and Well-Being SDG 5 Achieve gender equality and empower all women and girls SDG 8 Decent Work and Economic Growth SDG 10 Reduced Inequalities SDG 11 Sustainable Cities and Communities SDG 12 Ensure sustainable consumption and production patterns20

EXHIBIT XHow far have the Connect 2020 Agenda goals been achieved


Source :ITU18 G20 Leaders Declaration (2018, December 1) Buenos Aires, Argentina19 G20 Buenos Aires Summit 2018 Final Compliance Report (2019)20 Sustainable Development Goals Knowledge Platform (retrieved from the website on 9th March 2020)


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The following issues are common hurdles to digital infrastructure investment experienced by all companies but especially by MSMEs:

High capital costs Susceptibility to changes in market conditions Negative or low rates of return in rural and remote areas Lack of accurate data for making informed investment decisions.21

G20 could play a role to help address some of these concerns, by Creating a digital platform for public-private partnerships to advance the

development of digital infrastructure that serves consumers’, businesses’ and governments’ needs.

Boosting investment in digital infrastructure to reduce the connectivity and access gaps between individuals, organizations and countries while supporting the build-out of digital networks with robust capacity to handle demand surges and meet the needs of society in times of greatest need.

Incentivizing digital infrastructure companies to develop profitable business models and make digital access more affordable through investment support e.g. tax reduction or tax reliefs to provide the opportunity for digital access to all. 22

Policy Action 1.2: Developing robust cyber strategies against cyber-attacks for individuals, MSMEs, businesses and governments - The G20 should

Promote a national ecosystem to foster collaboration amongst governments, businesses and universities/research centers to gain a clear understanding and endorsement for criteria regarding the trustworthiness in the business environment, e.g. transparency, strong ethical practices and proven track record of adherence to cybersecurity principles.

Implement a multi-stakeholder approach and establish principles for a global platform for the prevention of, incident management during and deduction of learnings from cyber-attacks.

21 OECD (2017) Key Issues for Digital Transformation in the G2022 For details on how policy makers can create an international policy environment conducive to strengthening e-commerce (see B20 Trade and Investment Policy Paper policy action 2.1.) and foster cooperation and best-practice sharing on cross-cutting issues regarding e-commerce, especially for MSMEs (see B20 Trade and Investment Policy Paper policy action 2.2.)



COMPARISONRephrased from:Advancing public private partnershipsPromoting investment funds Create incentives that advance the development of profitable business models that provide the opportunity of digital access for all especially in rural areas.



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Promote a catalogue of minimum recommended mandatory cybersecurity standards based on a risk-based approach including built-in cyber security controls, regular testing of technologies and penalties for not addressing known cybersecurity vulnerabilities ensuring that those standards are also implementable for Micro, Small and Medium Enterprises (MSMEs) to ensure cyber readiness.

Provide incentives such as tax reliefs for businesses investing in cyber security.

G20 leaders committed to “step up efforts to enhance cyber resilience” 23 in 2019 in Osaka and the topic will receive further attention in the coming years as cyber attacks are constantly changing:The object of the attacks is evolving constantly. While information theft is still the most expensive and fastest rising cybercrime, attacks on industrial control systems are rising. The consequences of attacks are different as well. Data is not only being copied but also destroyed and changed. In addition, techniques of cyber-attack are varying more. Cybercriminals are not only going through human behaviour but also through commercial businesses and nation-states. 24 Businesses have to step up and ensure their cyber security strategies are sufficient and up to date. Stakeholders will demand adherence to a set of criteria e.g., transparency, strong ethical practices and proven track record of adherence to cybersecurity principles that proves trustworthiness of business environments. These criteria should be developed by national ecosystems fostering collaboration amongst governments, businesses, universities and research centres to gain a clear understanding of the criteria. A multi-stakeholder approach is required to address these varying threats at a single point and unify knowledge on the prevention, management and deduction of lessons learned from all stakeholders involved, e.g. governments, businesses and universities/research centers. 25 At the same time caution should be exercised that the strategies, frameworks and policies created do not tie down businesses with compliance and control obligations, but instead focus on harmonized and pragmatic implementation for digital products and solutions. .Governments should also devote special attention to increase awareness of security threats amongst all businesses, especially MSMEs, as they are typically less equipped than larger firms with the institutional, managerial and financial

23 G20 Leaders Declaration (2019, June 29) Osaka, Japan24 Accenture (2019), Cost of Cybercrime25 For details on how policy makers can create standards that enhance trust and transparency in the financial technology sector, see B20 Finance and Infrastructure Taskforce Policy Paper (2020). Policy Action 3.2





COMPARISONRemoved:Obviously businesses also have to step up and ensure their security strategies are sufficient and up to date and fulfil minimum requirements. As businesses perceive these threats, they accordingly increase their information security spending. Gartner Forecasts Worldwide Information Security Spending to exceed $124 Billion in 2019, an increase of 9% from $114 Billion in 2018.


COMPARISONReplaced “International and national collaboration” with “multistakeholder approach”



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capacity to develop and implement appropriate digital risk management practices. G20 can take action along two measures here. Firstly, a catalogue of minimum recommended mandatory cybersecurity standards based on a risk-based approach including built-in cyber security controls, regular testing of technologies and penalties for not addressing known cybersecurity vulnerabilities. Secondly, through the provision of incentives such as tax reliefs for businesses that are investing in cyber security. Lastly, increasing IT security spending will not be sufficient to face the cyber threats as businesses also require more cyber security professionals. Increased demand for cyber security professionals will lead to a shortage of 3.5 million unfilled cyber security jobs globally by 2021, up from one million positions in 201426.

EXHIBIT XOutcomes of the Global Cyber Security ForumThe Global Cyber Security Forum (GCF) announced two initiatives related to the Protection of Children in Cyberspace, and Enabling the Role of Women in Cyber.

The GCF declaration discussed five main actions within the field of cyber security;

(1) To promote a thriving cyber security industry that fosters innovation and investment to address evolving cyber security risks.

(2) To foster a capable cyber security workforce that can respond to the demands of a technology-centric economy, emphasizing the importance of elevating the role of Women in Cyber.

(3) To cultivate cyber aware communities, empower key stakeholders, cooperate, and joint action to combat the various types of cybercrimes, focusing on means to raise Safe Children in the Cyber World.

(4) To enhance global cyber security resilience in order to mitigate cyber security risks, leveraging emerging technologies and public-private partnerships.

(5) To advance inclusive cyber security capacity building at the global level through international collaboration, focusing cyber security capacity building for emerging economies.

Source : Global Cyber Security Forum Declaration (retrieved from website on 12th March 2020)

26 Cybersecurity Ventures (2019). 2019 Official Annual Cybercrime Report




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Policy Action 1.3: Investing in Human Capital in the field of cyber security and protecting communities from cyber threats - The G20 should

Recognize the importance of national and global educational platforms on all aspects of cybersecurity for citizens, businesses and governments.

Drive information and communication campaigns from government on the dangers of cyberattacks and prevention measures. such as European Union Agency for Cybersecurity (ENISA) or OECD Global Forum on Digital Security for Prosperity.

Support the involvement of independent standards organizations in certifying online products and applications to build trust of consumers and businesses in digital products.

Develop an international information platform on cybersecurity education degrees that candidates can use to inform themselves on career options.

Agree on key elements for a common curriculum of training for cybersecurity professionals by education institutions as well as guidelines for training on the job by companies.

Increase awareness of cyber insurance coverage and promote a collective understanding of the challenges and opportunities of cyber risk insurance.

Cyber security will be a topic for all companies, employees and users: Companies from all industries and of all sizes are being attacked. In recent years healthcare, manufacturing, financial services, government, and transportation have been most affected. However, as more industries are digitizing, all businesses need to scale up their cyber protection. Employees will also be required to be much more informed and alert regarding cyber security. A company can have all the IT security in the world, but its employees will always be the weakest link in the security chain. The world will need to cyber protect 300 billion passwords globally by 2020. There are more than 111 billion lines of new software code being produced each year — which introduces a massive number of vulnerabilities that can be exploited. In 72% of data breaches, the problem did not arise because of inadequate security technology but because of organizational, process and people failures27. Moreover, while IT security spending is rising, the number of records breached is rising faster – meaning that spending available per breached record is decreasing.

27 BCG (2017), Building a Cyberresilient Organization


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Users will also be interacting more and more digitally and accordingly run more cyber risks in their daily lives during routine interactions. As everybody and every business or institution is affected by cybersecurity, increasing awareness on cyber security will be crucial. Governments should thus recognize the importance of national and global education platforms as well as informational and communication campaigns on all aspects of cybersecurity. [See Exhibit x]

EXHIBIT XCase Study ENISA


Source : ENISA Consumers also perceive the increasing cyber security threat. About 80% of people surveyed by the Centre for International Governance Innovation (CIGI) were worried about their online privacy; with over half saying, they were more concerned than they were a year ago. Part of the worry is due to users believing that governments are not doing enough to safeguard online data. In the survey more than half were worried about their personal information, especially low confidence levels were mentioned in North America (38%) and the G8 countries (39%)28. It is thus very important for G20 member countries to support the involvement of independent standards organizations in certifying online products to build the trust of consumers and businesses in digital products and guide them towards a responsible use of these. Cybersecurity dangers are particularly grave in the work environment. Business need to support employees by providing tools and incentives to help them to define and address risks. Especially as the new way of working leads to more remote and more compartmentalized work, employees require more training. Training on cyber security issues needs to be embedded into the fabric of the organization. HR, legal and IT teams need to work closely with business units to ensure employees are up to speed on the risk and prevention measures.Currently there will be 3.5 million unfilled positions by 2021, increasing from one million positions in 2014.29 In order to fill this gap, G20 members should advance the development of an international platform where candidates can inform themselves about career options in the field of cyber security. Secondly, governments should ensure quality education on cyber security issues and introduce key elements for a common curriculum of training for cybersecurity 28 CIGI (2019), CIGI-Ipsos Global Survey retrieved from Website on 28th January 202029 Cybersecurity Ventures (2019) Cybersecurity Talent Crunch To Create 3.5 Million Unfilled Jobs Globally By 2021 (retrieved from the website on 9th March 2020)



COMPARISONRephrased from:endorse established institutions that can restore the trust of consumers and guide them towards a responsible use of digital products and solutions.


COMPARISONReplaced users with consumers



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professionals by education institutions as well as guidelines for training on the job by companies so that cyber security professionals fulfill a set of common minimum criteria. Another key factor to increase cyber security will be the growing adoption of cyber insurance by large businesses and MSMEs as well as private individuals. Currently, this market is still relatively small compared to the potential size according to the cyber risks that all parties face. The market is lagging behind due to the following demand and supply factors: Demand factors such as

Inadequate regulatory push in most countries Inability to find appropriate and affordable solutions due to in transparent

markets Poor perception of risk-return trade-offs by consumers Lack of link between cyber insurance and other insurances against pitfalls,

e.g. theft of Intellectual property,These supply factors further restrict the market

Inadequate data to allow accurate pricing High cost and complexity of delivery

G20 should increase awareness on cyber risk insurance among businesses and private individuals so that everybody can assess the challenges and opportunities of insurance for the business and for personal protection.



COMPARISONNew text added to replace “standards”

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Recommendation 2: Advancing all aspects of artificial intelligence

Overview

Policy Action 2.1 Creating a favorable and trust-building regulatory environment for usage of AI and data

Policy Action 2.2 Educating businesses, governments and society on artificial intelligence

Policy Action 2.3 Advance AI benefits for all

Context

The term AI has been around for more than 60 years when it was first used at a conference in Dartmouth College, USA in 1956. All those that attended the conference were very optimistic about AI’s future. Big advances on the topic however would only pick up in the 1990ies when an IBM computer became the first computer to beat a chess champion. Since then the speed of AI innovation has picked up rapidly30.Although AI in our everyday life’s still seems quite futuristic, the topic is a key priority for government leaders and businesses of all sizes as well as for digital consumers. Impact of AI will be immense. [See exhibit X]

EXHIBIT XImpact of AI


30 Forbes (2016), A very short history of artificial intelligence, (retrieved from website 29 th January 2020)


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Source : 1. MIT Sloan Management Review & BCG (2017). Reshaping business with artificial intelligence. 2. PwC (2017). Sizing the price. What’s the real value of AI for your business and how can you capitalize? 3. Gartner (2017). Press Release. Gartner Says By 2020, Artificial Intelligence Will Create More Jobs Than It Eliminates. 4. Digital Economy Compass. 5. NVIDIA (2017). NVIDIA Paves Path to AI Cities with Metropolis Edge-to-Cloud Platform for Video Analytics. 6. Servion (2018). What makes emerging technologies the future of customer experience?

The advances of AI also pose certain direct challenges:

Ethical violations, e.g. privacy or discrimination Accidents and the loss of human life, e.g. false medical prediction or

tampered military system False business decisions, e.g. false price prediction Political, financial and infrastructure manipulation, e.g. traffic manipulation

causing accidents Also indirect risks such as:

Lack of public trust Overregulation and hampering of innovation Unequal distribution of access to technology

G20 member countries are at different levels of readiness for facing the challenges of AI. [See exhibit X] Key factors for readiness of a country are:

Existence of a national AI strategy and Data Protection Regulation Data availability and infrastructure


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Technology skills Scope and quality of (digital) public services 31

EXHIBIT XGovernment Artificial Intelligence Readiness Index 2019


Source : Oxford insights (2019) Government Artificial Intelligence Readiness Index 2019

G20 leaders first committed to “continue our work on artificial intelligence” in 2018 in Buenos Aires32. In the following year, they emphasized the “responsible development and use of Artificial Intelligence (AI) as a driving force to help advance the SDGs and to realize a sustainable and inclusive society”33.The various forms of AI can bring great efficiencies, speed, and intelligence to achieving the SDGs. Concrete potential effects on SDG targets are still being analyzed. 34

The G20 should continue to be supportive of the innovative potential of AI through:

31 Oxford insights (2019) Government Artificial Intelligence Readiness Index 201932 G20 leaders Declaration (2018, December 1) Buenos Aires, Argentina33 G20 leaders Declaration (2019, June 29) Osaka, Japan34 2030 Vision Artificial Intelligence and the Sustainable Development Goals: The State of Play


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(1) Addressing all risks of AI especially through regulatory environment (2) Informing and educating stakeholders (3) Spreading the benefits of AI to all parts of society

Policy Action 2.1: Creating a favourable and trust-building regulatory environment for usage of AI and data - The G20 should

Create AI national action plans to ensure responsible stewardship and implementation of trustworthy AI based on the voluntary OECD AI principles endorsed by G20 leaders.

Build upon the work of the OECD AI Policy Observatory to strengthen the multidisciplinary, evidence-based and multi-stakeholder dialogue around analysis of public policy on AI.

Promote accountable frameworks for the protection of data privacy and data safety across nations so that beneficial uses of AI are preserved while risks of privacy harms are assessed and mitigated consistent with local legal requirements.

Support regulatory sandboxes for AI applications to advance public sector regulation and innovation.

19 out of the G20 member countries have already introduced national regulations around AI but not all countries have taken action to make the most of AI and prepared for mitigation of the associated risks.35 One particular risk with cross-border flows is arbitrage between countries due to lack of level playing field in some jurisdictions.36

The G20 leaders should thus create national action plans that monitor the advance of AI in a responsible manner. Action plans should be based upon the OECD AI Principles. [See exhibit X] These were adopted in May 2019 by OECD member countries when they approved the OECD Council Recommendation on Artificial Intelligence. The OECD AI Principles are the first such principles signed up to by governments.

EXHIBIT XOECD AI Principles

35 OECD (2019), Artificial Intelligence in Society36 For more details on how policy makers can foster an environment that boosts innovation in financial services, see B20 Finance and Infrastructure Taskforce Policy Paper (2020). Policy Action 3.1



COMPARISONRemoved:This can be mitigated by ensuring that national regulation treats the same business model with the same risk with the same regulation.

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The Recommendation identifies five complementary values-based principles for the responsible stewardship of trustworthy AI:

AI should benefit people and the planet by driving inclusive growth, sustainable development and well-being.

AI systems should be designed in a way that respects the rule of law, human rights, democratic values and diversity, and they should include appropriate safeguards – for example, enabling human intervention where necessary – to ensure a fair and just society.

There should be transparency and responsible disclosure around AI systems to ensure that people understand AI-based outcomes and can challenge them.

AI systems must function in a robust, secure and safe way throughout their life cycles and potential risks should be continually assessed and managed.

Organizations and individuals developing, deploying or operating AI systems should be held accountable for their proper functioning in line with the above principles.

Source : OECD AI Principles (retrieved form website on 9th March 2020) G20 Governments and businesses should build upon the work of the OECD AI Policy Observatory to advance the multidisciplinary, evidence-based and multi-stakeholder dialogue around analysis of public policy on AI and “enable, nurture and monitor the responsible development of trustworthy artificial intelligence (AI) systems for the benefit of society.”37 A particular emphasis of the OECD should be placed on identifying areas where the deployment of AI systems requires approval in a defined process and highlighting these areas to government and businesses.As most business models involving AI will involve cross-border data flow, it is further particularly relevant that AI strategies of G20 countries include interoperable regulations governing standards for good data stewardship, e.g. adherence to data privacy, safety and sharing guidelines (e.g. API based data access) across nations. Regulations should ensure that individual data protection laws remain in place while data at a population level, machine data and anonymized data is leveraged for training of Machine Learning (ML) algorithms.Regulatory Sandboxes can be one policy instrument to advance the use of digital tools and speed up access to these tools for the general public. Regulatory sandboxes are defined as a “framework allowing innovators, under the oversight of a regulator, to conduct small-scale short-term testing of their innovations using live participants, in a controlled, bounded, safeguarded environment under relaxed regulatory conditions”. Recently they are becoming more frequent as developed and developing countries are experimenting with these environments for innovators to test new technologies. [See exhibit X]37 OECD AI Policy Observatory



COMPARISONNew text to replace:have common policies for data privacy and data safety as well as API-based data access and sharing mechanisms.


COMPARISONRephrased from:“G20 Governments and businesses should contribute to the OECD AI Policy Observatory to advance AI policies from around the world and….”

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Benefits of regulatory sandboxes include:A) Innovation-friendly signal to the market B) Potential path for a more seamless path towards deployment of innovationC) Emphasis of policy objectives and potential for financial inclusion benefitsD) Potential to enhance regulatory capacity and innovator knowledge E) Reduction of regulatory uncertainty 38

EXHIBIT XOverview over regulatory Sandboxes in G20 countriesRegulatory sandboxes generated interest from different regulators and innovators across the world ever since the first regulatory sandbox was launched in 2015 in the United Kingdom. Today, regularity sandboxes are reported to be live in 7 of the G20 countries:

Country Status Regulator / AdministratorAustralia Live Australian Securities & Investments

Commission (ASIC)Canada Live Canadian Securities Administrators

(CSA)China Reported Live People's Government of Ganzhou

CityIndia Report Published Reserve Bank of India (RBI)Indonesia Live Bank IndonesiaJapan Announced Financial Services Agency (FSA)South Korea Pilot Launched Financial Services Commission (FSC)Mexico Regulation to

EstablishBanco de México

Russian Federation

Live Bank of Russia

Saudi Arabia Officially announced

Saudi Arabian Monetary Authority

South Africa Being explored South African Reserve Bank (SARB)UK Live Financial Conduct Authority (FCA)US Live Office of the Attorney General

(Arizona State)Source: Columbia Institute for Tele-Information, Regularity Sandboxes (retrieved from website on 3rd of April 2020)

38 Wechsler et. al. (2018) The State of Regulatory Sandboxes in Developing Countries


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Policy Action 2.2: Educating businesses, governments and society on artificial intelligence - The G20 should

Support public information campaigns with visibility and funds that communicate businesses and society’s needs for AI e.g. cancer diagnosis in order to increase trust in AI.

Show political will to implement AI use cases in the public sector with support of the private sector, e.g. use of AI Virtual Assistant to manage customer calls in social welfare institution.

Encourage universities to elevate AI to a full degree as well as introduce shorter courses on AI for secondary and tertiary education institutions to ensure that sufficient trained professionals are available for research, development and operation of AI applications.

Commit to create national employee online learning programs that convey rules of ethics and safety to employees using AI applications and make passing the online course a prerequisite for these jobs.

For AI to work well, it needs to be fed with the required data sources, be embedded deeply into the processes it aims to support and be constantly improved with feedback loops so that it can get better. This requires that the users of the AI solution are informed and very actively involved in the design of the solution from day one.39 This requires information and education of the general public.However, people’s trust in AI is not yet wide spread. On a recent study of 18.000 respondents, the share of people who agree they trust AI varies from 13% in Japan to 70% in China.40 Governments and businesses thus need to join forces to educate the public on artificial intelligence. [See Exhibit X]

EXHIBIT XTrust in AI across countries


39 BCG (2019), How to win with artificial intelligence40 Ipsos (2018) Entrepreneurialism An Ipsos Global Advisor Survey The Emergence of Social Entrepreneurialism to Compete with Business Entrepreneurialism (retrieved from website 10th March 2020)


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Source: Ipsos (2018) Entrepreneurialism An Ipsos Global Advisor Survey The Emergence of Social Entrepreneurialism to Compete with Business Entrepreneurialism (retrieved from website 10th March 2020)

Governments need to ensure that the needs for and advantages of AI are communicated to businesses and society. Through giving visibility via government endorsement or providing funds governments should advance those institutions driving information campaigns that show case good uses of AI. [See Exhibit X]

EXHIBIT XCase Study of cancer detection by AI Breast cancer is one of the major causes of death from cancer in women. However, early detection can considerably increase treatment success rates.


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To do so, screening mammography is used. There is a large room for improving the accuracy of experts in interpreting the screening mammography images to detect breast cancer.

Artificial Intelligence is a key lever to improve the accuracy of breast cancer screening as studies demonstrate its capabilities in medical image analysis.A group of researchers has developed an artificial intelligence system to analyze mammography images and detect breast cancer.

The system was tested on a total sample of approximately 29,000 women from UK and USA. It showed a promising increased accuracy of breast cancer detection in USA by reducing false positives by 5.7% and false negatives by 9.4%. The results were also positive in UK; 1.2% and 2.7% reduction in false positives and false negatives, respectively.In another independent study against six radiologists, the AI algorithm was able to outperform all six radiologists in detecting breast cancer.

Source : Nature (27.07.2019), International evaluation of an AI system for breast cancer screening

Government should also advance the use of AI in public services. This would not only support governments in improving this particular service through improved analysis, prediction or quality and help public institutions develop their capacities in the field but also ensure citizens come in contact with a safe and monitored AI application and advance the spread of AI. [See Exhibit X]

EXHIBIT XCase Study of AI Virtual Assistant to manage customer calls in Australia’s Department of Human Services (DHS)Australia’s Department of Human Services (DHS), has deployed and AI-based virtual assistant Roxy to help reduce its staff’s workload in 2016.

Roxy answers queries from case processing officers by using machine learning and natural language processing to understand human language. It respond to questions about the rules and regulations of the department’s programs.

Previously, human experts had to assist Service Australia’s staff in every query. However, with Roxy succeeding to answer 78% of quires, staff’s workload has significantly been reduced and experts have the time to focus only on complex queries.

The department was satisfied with the outcomes of using an AI virtual assistant. Following Roxy, it deployed more than three other virtual assistants for customer and channel management.


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Source: Deloitte (2017), AI-augmented human services: Using cognitive technologies to transform program delivery; ITnews (2018), DHS brings digital assistance to myGov

A recent study suggests that the AI skill gap is vast: About 300,000 AI professionals exist worldwide, but there are millions of roles available. While demand for AI solutions and the pace of innovation and new discoveries and likewise the demand for AI experts is increasing each year, education institutions and training programs cannot keep up.41 Governments should thus contribute towards sufficient talent supply in the field of AI in two ways:

1. Formal education: Encouraging universities to elevate AI to a full degree and shorter courses on AI for secondary and tertiary education institutions as well as across other subject areas such as STEAM and business courses.

2. Informal education: Commit to create national employee online learning programs that convey rules of ethics and safety (based on the OECD AI Principles) to employees using AI applications and make passing the online course a prerequisite for these jobs.

Policy Action 2.3: Advance AI benefits for all - The G20 should

Encourage businesses and research institutions to create data sets and analytics that represent a wide range of different societies and so that AI can benefit people and the planet by driving inclusive growth, and contribute towards a fair and just society.

Collaborate with the OECD AI policy observatory to define measures that ensure the spread of the benefits of AI into countries and areas of society that have been disadvantaged in access, e.g. women and girls, the elderly and vulnerable groups, rural regions, developing countries and MSMEs.

Application of AI/Machine Learning (ML) could add $15tn of value by 2030 but its increased use also raises inclusion and distribution questions.42 Unfairness in AI and ML outcomes can arise from either from biases in the data or from biases in the algorithms: Data bias such as historical bias from existing socio-technical biases that seep into data generation process or representation bias due to the definition of the population leading to lack of geographical diversity. Mitigation measures include having datasheets that would act like a supporting document for the data reporting the dataset creation method, its characteristics, motivations, and its

41 Forbes (2018), The AI Skills Crisis And How To Close The Gap42 Forbes (2019), AI Will Add $15 Trillion To The World Economy By 2030


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skews and having labels, just like nutrition labels on food, in order to better categorize each data for each task. 43

Algorithm bias tend to have biases because they tend to be more likely to classify new observations as the majority class or weigh false positives and false negatives similarly although a false positive has much higher impact. This bias could be mitigated through modifying of datasets to boost predictive performance on minority class. 44

AI readiness varies a lot between countries and certain communities have been disadvantaged in access e.g. rural regions, women, MSMEs. One main reason is Investment and Financing varies a lot between countries. China and the US together make up 90% of the funds invested in AI. [See Exhibit X]

EXHIBIT XAI investment and financing share by country 2013-2018


Source: CAICT (2018) World AI Industry Development Blue Book

43 Mehrabi et al. (2019) A Survey on Bias aid Fairness in Machine Learning 44 Medium (2018) How to Handle Imbalanced Data in Classification Problems


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As a result, AI start-ups are also highly concentrated in the United States, Asia and European Union. [See Exhibit X]

EXHIBIT XAI Start-up distribution by countryCountry # of start-upsUnited States 1.393China 383Israel 362United Kingdom 245Canada 131Japan 113France 109Germany 106India 82Sweden 55

Source: Roland Berger (2018) Artificial Intelligence – A strategy for European startups

Similarly, these countries also hold the most AI patent applications. [See Exhibit X]

EXHIBIT XAI distribution of patent applications by country Country # of patent

applicationsUnited States 279,145China 66,508Europe 60,346Japan 58,988Germany 53,897United Kingdom 53,502Spain 42,256Sweden 42,064Switzerland 41,668Austria 41,331Total 739,705

Source: IPlytics (2019) Who is patenting AI technology

The G20 leaders should ensure that the benefits of AI spread into countries and communities that have had less access. They should collaborate with the OECD AI Policy Observatory on ensuring that existing biases are not perpetuated but


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instead “advancing inclusion of underrepresented populations and reducing economic, social, gender and other inequalities.” 45

In order to advance inclusiveness of AI, governments should also make public-sector data available to research institutions. Most G20 governments already allow access to substantial areas of public data with Australia reaching a 79% score in the Global Open Data Index, however Indonesia only receives a score of 25%. 46 [See exhibit X]

EXHIBIT XOpenness of government data by country


Source: TBD

45 OECD AI Principles (retrieved form website on 9th March 2020)46 Global Open Data Index (2020)


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Recommendation 3: Laying the foundations for smart cities

Overview

Policy Action 3.1 Installing the key building blocks for smart cities to succeed

Policy Action 3.2 Increasing societal acceptance of smart cities

Policy Action 3.3 Supporting municipalities in the rollout of smart city elements

Context

As the global population grows and urbanization accelerates, more and more people will live in cities or possibly even mega-cities (with a population over 10 Mio. citizens). The United Nation predicts 43 megacities in 2030.47 By 2050, every fifth person will be living in a megacity. [See Exhibit X]

EXHIBIT XGlobal and Urban Population development


47 UN (2018), World Urbanization Prospects 2019


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Source: BCG Analysis (2018) based on UN World Urbanization Data

At the same time, life in cities is made more complex by further challenges: Resource scarcity: Increasing water scarcity and energy demand Demographical change: Growing and ageing population Congestion: Increased pollution and housing scarcity, sanitation issues Social unrest: Increasing income gap and higher risk of civil unrest, strikes Supply Chain sensitivity: Increased frequency and severity of natural

disasters Technology dependence: increased importance of AI, cyber security, IoT

and Big Data Increased demand: Increased demand for public services, health services,

education and transportationSmart cities have significant potential to address these challenges. The concept of smart cities was first developed in 1990s and aimed to use the advancements of information communication technology for the improvement of infrastructure and city lives. Several cities and organizations, e.g. California Institute for Smart Communities started working on the transformation of cities into smart cities. Smart Cities are defined as cities leveraging digitization; new behaviors, services and ways of working, that rapidly changes society driven by new technology, to enhance the quality of old and new solutions in a citizen-centric way. Their purpose is to make society more socially, economically and ecologically sustainable and respond more effectively to the needs and desires of its residents to improve quality of life.Smart Cities increase quality of life for citizens of cities across a wide range of areas [See Exhibit X].

EXHIBIT XAreas of smart infrastructure



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Source : WEF (2015) Expanding Participation and Boosting Growth: The Infrastructure Needs of the Digital Economy

However, the advancement of smart cities can be slowed down due to48 49: Governance challenges, e.g. lack of cooperation between government and

other nodes, poor partnership between private and public sector Legal matters, e.g. lack of standardization, lack of open data and lack of

regulation Technological barriers, e.g. poor data availability and scalability and

integration and convergence issues across IT networks Social deterrents, e.g. low level of awareness of citizens on the

implications of smart city on the quality of life Economic aspects, e.g. high level of investment in IT infrastructure (e.g.

cloud computing, artificial intelligence) is required Environmental issues, e.g. lack of sustainable resources such as fresh

water

48 Rana (2019), Barriers to the Development of Smart Cities in Indian Context 49

Smart Cities Council, The barriers to smart cities (retrieved from the website on 05th February 2020)


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G20 leaders first committed to “encourage networking and experience-sharing among cities for the development of smart cities” as well as the potential of smart cities towards climate action 50 in 2019 in Osaka. The advancement of the smart city affects mostly SDG 11 sustainable cities and communities. In particular

Target 11.3 enhancing inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management

Target 11.B increase of the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement.

Three success factors are required for the advancement of smart cities today:(1) Cooperation and Coordination: Smart cities can only be a joint effort

by government, businesses, academia and citizens. Cross-sectoral alignment is required as well as collaboration across the entire value chain.

(2) Communication and Change management: Citizens should be informed on the chances of smart cities and welcome smart city elements into their lives.

(3) Commitment and Co-funding: Governments should be committed to smart cities advancements and actively support municipalities in the rollout of smart city elements, e.g. through investment and training.

Policy Action 3.1: Installing the key building blocks for smart cities to succeed - The G20 should

Create and communicate a global definition of what smart cities are. Work towards similar technical requirements to enable innovation for

smart cities, e.g. interoperable standards for Building Information Modelling (BIM) to enable a shared infrastructure.

Strengthen cooperation among all those involved in the creation and running of smart cities and smaller smart city elements such as smart buildings based on the G20 Global Smart Cities Alliance global policy framework and guiding principles.

50 G20 Leaders Declaration (2019, June 29) Osaka, Japan


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Give clear frameworks for the protection of data privacy and data safety across nations so that the benefits of sharing data among stakeholders of smart cities can be preserved while risks of privacy harms are assessed and mitigated consistent with local legal requirements.

Drive the modernization of the smart city back office by strengthening top-level planning for information technology infrastructure such as networks, computing power, storage and platforms, and encourage relevant stakeholders to share solutions and best practices.

A clear definition of smart cities among several sectors and stakeholders is needed. Already today, many different levels of “smartness” exist today; tools range from those that perform basic monitoring to advanced systems enabling predictive, analytics-based applications. It is important that a clear agreement among all those involved is reached so that all stakeholders can work towards these interoperable technical requirements, e.g. standards for Building Information Modelling (BIM), common standard APIs and information models to enable a shared infrastructure. Nonetheless, intensive collaboration is required as so many different areas are involved in the creation and running of a smart city (or smart city elements). A system-wide view, central driving force of the cross-sectorial cooperation and an integrated, cross-departmental approach based on clear regulation of roles and agreement on jurisdictions are all key enablers of successful collaboration in the field of smart cities. Decision-makers should build upon the work of the G20 Global Smart Cities Alliance that is currently working towards the creation of a policy framework using five guiding principles51:1. Transparency and Privacy2. Safety, Security and Resiliency3. Interoperability and Openness4. Operational and Financial Sustainability5. Equity, Inclusion and Societal ImpactMassive amounts of machine-generated data will be necessary for smart cities to function. This requires

An infrastructure that allows sensors and actuators remotely controllable device, e.g. building thermostats to connect with each other

A digital network to be secure, stable, offer capacity and inexpensive51 G20 Global Smart Cities Alliance (retrieved from website 10th February 2020)





COMPARISONReplaced “similar technical requirements and install similar technical requirements” with “interoperable technical requirements”

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Advanced data analytics applications for complex prediction models Secure data warehouses (cloud-based) to grand access to real-time,

“anonymized” data[See exhibit X]Governments will need to play a strong role in giving clear guidelines for data collection and data sharing among all stakeholders especially in cross-border contexts. They should provide an overall governance structure, give clear rules on what data is allowed to be collected and provide mechanisms to ensure these rules be adhered to. In addition, governments should work together with cities to help them create an overall vision and plan on data collection and data usage as well as an overview on all stakeholders collecting and using the data. Introduction of the role of a designated Data Czar could help cities overcome the challenge of conflicting interests around data as well as the need for cooperation in this multi-stakeholder environment.

EXHIBIT XMany Elements of ICT Infrastructure needed for Smart Cities:>> Work in Progress <<

Source: WEF (2015) Expanding Participation and Boosting Growth: The Infrastructure Needs of the Digital Economy

Governments have to step up to drive the modernization of the smart city back office through strengthening of top-level planning for information technology infrastructure such as networks, computing power, storage and platforms. This




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task also requires a coordinator to bring together all stakeholders under a holistic, long-term goal to share solutions and best practices.

Policy Action 3.2: Increasing societal acceptance of smart cities - The G20 should

Co-fund public communication campaigns to communicate the benefits of smart cities (e.g. climate-friendly, inclusive, safe and healthy) and the advantages of efficient utilization of emerging technologies in day-to-day life.

Support bottom-up initiatives and open source libraries that allow local citizens to participate in the development of smart cities from scratch.

Maximizing the use of data at population level such as traffic flows for smart mobility while taking into account the existing regulations around data privacy, data protection and security of individuals, e.g. individual movement patterns.

Actively promote lighthouse smart city projects through government institutions such as garbage collection, public lighting and sanitation, to advance the adoption of the Smart City model by citizens.

Define measures to promote the application of smart city technology in the fields of safer transportation, efficient (and environment-friendly) energy use, medical care, education and healthy ageing and provide access to convenient, efficient, low-cost and personalized services so that the benefits of smart cities can spread to less advanced economies and regions.

Governments will have to ensure that citizens are comfortable with the smart city developments. Fears about privacy intrusions, skepticism about mass data collection, the proliferation of digital tools into all aspects of life and worry about cyber-attacks have eroded the trust of residents in “smart” projects. 66% of participants of a recent study mentioned they would not provide highly personal information to reduce their commute.52

A case study from Toronto shows that it is crucial to bring the public along on all phases of the endeavor, have strong governance frameworks to ask the right questions and ensure the spread of technological benefits e.g. between large urban megacities and rural communities. [See Exhibit X].

52 VRGE (2018), The Techlash Paradox - Love and loathing of America's Tech Industry (retrieved from the website on 19th February 2020)


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EXHIBIT XCase Study from Toronto: Sidewalk (Alphabet Project) Alphabet won a bid to redevelop 800 acres of Toronto’s waterfront in October 2018. Citizens were sceptic, e.g. the Canadian Civil Liberties Association sued the city of Toronto in April 2019. The company thus engaged extensively with Toronto’s citizens and companies through round tables, town halls and expert panels. It released a proposed data governance plan. It stated that data gathered through the project would be kept by an independent “civic data trust” and will not be sold, used for advertising, or shared without people’s permission.

Elements of the project: ubiquitous high-speed internet low-energy buildings that rely on clean sources trash management and delivery of other city service environmentally friendly public transit options including autonomous

cars, biking and walking trails optimized traffic flow such as intelligent traffic lights and underground

delivery robots smart thermal energy grid and wooden homes.

After several newspaper articles (Toronto Star and Washington Post, Feb. 2019) on the risks of big companies using their power and influence in ways that could hurt the public interest, Toronto residents created #BlockSidewalk, a campaign to stop the Quayside project, and invited supporters across the world to sign an online petition.As a reaction, the Sidewalk Labs released its Master Innovation and Development Plan for the Toronto project in June 2019. However, this plan only raised more skepticism as citizens had questions about the many proposals in the document.

A final decision on the project will be taken at the end of the year. Source: Technology Review (24.06.2019), Alphabet’s smart city will track its citizens, but promises to protect their data; Wharton (24.09.2019), What is Fueling the Smart City Backlash? (retrieved from the website 19th February 2020)

Successful smart city projects require three elements:1. A champion that holds together all the stakeholders, excites, and informs

citizens about all the prospects of smart cities. This champion can be an elected official, a representative of the administration or can come from the business leaders community, civic organizations or public-private-partnerships. The champion should drive communication campaigns that display the benefits of smart cities (e.g. climate-friendly, inclusive, safe




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and healthy) and the advantages of efficient utilization of emerging technologies in day-to-day life.

2. Involvement of the general public through bottom-up initiatives, e.g. engagement applications, transparency on technology development through open source libraries and Application Programming Interfaces (APIs). This does not only build trust but also makes smart city applications much more citizen-centric.

3. Clear data policies that maximize the use of data at population level such as traffic flows for smart mobility while taking into account the existing regulations around data privacy, data protection and security of individuals, e.g. individual movement patterns.

New York City is a model for civic engagement and citizen-centric orientation in smart-city projects through three key characteristics.

Mayor’s office offering a comprehensive set of tools to help citizens navigate digital technology resources

Hiring experienced staff to be in charge of technology and civic innovation for the city

Having local civic organizations dedicated to improving lives through civic design, technology, and data, e.g. BetaNYC

In addition, G20 member countries should promote the use of smart technology applications such as garbage collection, public lighting and sanitation by government institutions. Offering citizens regular positive experiences will greatly advance the adoption of the Smart City model. [See exhibit X]

EXHIBIT XCase Study from NEOM: >> Work in Progress <<

Source: TBD

Lastly, ensuring the spread of the benefits of smart cities to less advanced economies and regions will be crucial to avoid widening the divide in access. The application of smart city technology for safer transportation, efficient (and environment-friendly) energy use, medical care, education and healthy ageing as well as access to convenient, efficient, low-cost and personalized services will be








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crucial for the benefits of smart cities to spread to less advanced economies and regions. 53 [See exhibit X]

EXHIBIT XCase Study for prevention of disasters The 2004 Indian Ocean Tsunami has caused catastrophic damages to a number of South Asian and African countries. In Thailand, it resulted in thousands of fatalities and crippled the country’s economy.

Thailand did not haven an early warning system for tsunami hazards at the time. However, following the tsunami, country officials realized the importance of early disaster warnings and created the National Disaster Warning Center (NDWC) to improve tsunami and earthquake warnings.

NDWC contracted Pacific Disaster Center, a specialized organization in disaster prevention, to help develop a multi-hazard early warning and decision support tool.

The tool provides timely and relevant earthquake and tsunami information to disaster managers. Through visualization of hazard information, the agency can make better impact estimations and issue early warning to residents.

Source: PDC, DisasterAWARE Platform Used by National Disaster Warning Center–Thailand, 2015

Policy Action 3.3: Supporting municipalities in the rollout of smart city elements - The G20 should

Encourage municipalities and smaller communities to cooperate among smaller entities of smart city elements within one municipality, e.g. advancement of smart towns, smart villages or smart building hubs.

Create a global information and engagement platform to inform municipalities on the different options for investments in and financing options in smart city infrastructure today and in the future.

Engage in private public partnerships for necessary but less profitable deployments where solely private investments are not sufficient.

53 For details on how digitalization can contribute towards energy and resource efficiency, e.g. smart grid, smart meters and the sharing economy, see B20 Energy, Sustainability and Climate Taskforce Policy Paper (2020). Policy Action 1.2. highlights the need for smart power transmission and distribution systems. Policy Action 1.3. emphasizes the role of the sharing economy in enabling a more resource-efficient circular economy.




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Many cities today still act in siloes when it comes to smart city applications. Different departments commission Smart City elements. There is little thought put into sharing cost, data or a joint infrastructure. The results are disconnected and often redundant applications that suffer from potentially costly issues and roadblocks such as vendor lock-in, data siloes and lack of interoperability. 54

Municipalities should thus cooperate with each other and focus their efforts on one to two projects that fall into a greater and integrated plan. They should build upon a joint infrastructure in order to leverage each other and create common standards from which further applications can than grow. It can be useful to pilot a Smart City Talent Program to attract young civil servants that work side by side with experienced city planners but without the legacy ties to particular departments. Together they should enforce a people-first perspective and create smart city applications that follow citizen’s daily journeys. Municipalities often struggle to secure funding for smart city projects. Investors are risk-averse especially when it comes to investing in a technology that has no proof of concept yet or where benefits cannot be monetized as the path to steady revenue is unclear or the return on investment is uncertain. Three clear steps need to be taken by smart city planners to prepare the funding trajectory. 55

1. Understanding business model and value generated 2. Considering funding and financing options3. Determining relevant procurement and delivery method

A global information and engagement platform can help municipalities with these decisions and support them in the search of the right partner. Private public partnerships can be a good funding option in necessary but less profitable deployments where solely private investments are not sufficient.

54 Smart Cities World (2019), Smart cities: Beyond the hype 55 Deloitte (2018), The challenge of paying for smart cities projects


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Recommendation 4: Driving digital inclusion and growing digital skills

Overview

Policy Action 4.1 Overcoming the digital divide

Policy Action 4.2 Introducing and advancing innovative methods for digital education

Policy Action 4.3 Providing more digital job opportunities to women

Context

Digitalization penetrates almost every aspect of our lives. Ranging from the way we communicate, inform ourselves and learn to the way we shop and consume to the way we work and do business. It is essential that governments work together with businesses to equip individuals and businesses with the necessary digital skills to continue all interactions with each other. Slow or uneven adoption of digital technologies can potentially cause increase in inequalities between countries, locations, gender, socioeconomic status and age.56

In order to address the challenges for citizens, employees and institutions three areas require policy attention:

(1) Overcoming the digital gap especially with regards to divides that affect users across countries, location, gender, socioeconomic status and age

(2) Advancing education and learning methods to build the required capabilities to succeed in a digital world

(3) A particular focus of decision makers will also be on achieving level playing ground for women in the digital field.

Policy Action 4.1: Overcoming the digital divide - The G20 should

Support partnerships and platforms of high quality educational programs that teach individuals of all countries, regions, gender, socioeconomic status, vulnerable groups and ages how to utilise digital services including how to be protected from misinformation, online exploitation and violent extremism.

Promote multistakeholder partnerships to combat cyber violence and create safe digital environments for all.

56 WEF (2016), Internet for all


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Support the digitization of government services to increase public adoption and facilitate business operations especially for MSMEs while ensuring that all stakeholders have the capabilities to use these services.

A digital divide can be observed, as benefits of digitalization have largely been concentrated. The divide is across

Countries: Developed vs. developing Location: Urban vs. rural Gender: Male vs. female Socioeconomic status: Educated vs. less educated Age: Young vs. old 57

Already in 2015, the G20 leaders pledged to bridge the digital divide.58 This effort was continued in 2016 in Hangzhou with the G20 Digital Economy Development and Cooperation Initiative to address the digital divide59. In 2017, the leaders committed to bridge digital divides along multiple dimensions, including income, age, geography and gender and… to ensure that all our citizens are digitally connected by 2025 … and to promote digital literacy and digital skills in all forms of education and life-long learning.” 60 Leaders emphasized the need to “bridge the digital gender divide and further digital inclusion in 2018.61 Lastly in 2019, G20 leadership reaffirmed “the importance of bridging the digital divide and fostering the adoption of digitalization among MSMEs and all individuals, particularly vulnerable groups”. 62

These efforts also influence the SDGs, particularly: SDG 4 Quality Education including Target 4.b expand number of

scholarships available to developing countries for enrolment in education, with a focus on STEM subjects.

G20 leaders should continue to take action to overcome the digital divide to ensure that individuals of all countries, regions, gender, socioeconomic status and vulnerable groups and ages are enabled to utilize digital services. This means giving everybody the right skills to participate in digital interactions so they feel confident to use these services in their daily lives. The G20 leaders

57 OECD (2019) OECD Skills Outlook Report, OECD (2018) Bridging the Digital Gender Divide58 G20 Leaders Declaration (2015, November 16) Antalya, Turkey59 G20 Leaders Declaration (2016, September 5) Hangzhou, China60 G20 Leaders Declaration (2017, July 8) Hamburg, Germany61 G20 Leaders Declaration (2018, December 1) Buenos Aires, Argentina62 G20 Leaders Declaration (2019,June 29) Osaka, Japan




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should advance partnerships and platforms of high quality educational programs that teach all individuals how to utilize digital services including how to be protected from misinformation, online exploitation and violent extremism.The G20 members should join in a global taskforce to ensure that digital environments remain a safe space for all. 63 Measures of national governments include

adopting legislation targeting forms of cyber violence ensuring that police take online violence as serious as offline violence advancing quantitative and qualitative research on adequate responses to

cyber violence from witnesses perspectives awareness-raising campaigns about cyber violence rights and available

support services introducing self-regulatory standards to avoid harmful gender stereotyping

and the spreading of degrading images of women, or imagery that associates sex with violence.

Another lever to encourage adoption of digital services it to encourage production of local content and applications in local languages that can be understood by the respective target group. This would address two additional barriers to digital uptake which are that most online content is only in a handful of languages and that there is a lack of locally appealing apps. 64

Lastly, a key lever to achieve deepening of digital access is through public institutions “going digital” in their offering to citizens. These efforts should be accompanied by programs that allow all citizens to build the required capability and gain the confidence to use these services. Following the push for e-government including secure digital IDs, accessing full health records and internet voting in Estonia, the country has seen a huge increase in digitalization. [See Exhibit X] 65

EXHIBIT XCase Study on Estonia

63 2017 European Institute for Gender Equality Cyber Violence against women and girls64 WEF (2016) Internet for All65 For more details on how policy makers can advance digital identities, see B20 Integrity & Compliance Taskforce Policy Paper (2020).



COMPARISONNew text to replace “Partnerships between digital platforms such as Google Digital Garage and the Post Office Broadband to help those who are at risk of being left behind through a mix of online learning and Drop-in sessionspartnerships”

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Source: TBD

Policy Action 4.2: Introducing and advancing innovative methods for digital education - The G20 should

Reform education systems in order to better provide the skills for the future of work (stronger emphasis on Computer Science and other STEAM subjects) as well as teaching students using digital solutions.

Encourage and co-fund educational establishments such as vocational training colleges and private sector companies especially MSMEs to offer “nano-degrees and trainings” that are tailored to specific digital tasks of jobs, emphasize life-long learning, and foster the use of dual accreditation via academic qualifications and industry certification.

Develop a national digital education strategy that employs a range of tools and approaches including upskilling and reskilling on-the-job to bridge the gap between the skills the workforce has to offer and the jobs available in the job market.

To prepare individuals for the changes to communication, education, information, consumption and work governments, teaching institutions and businesses should work together to advance what we learn and how we learn. 66 WHAT WE LEARNReforming the education system ranging from schools, to universities to liberal arts institutions:

More teaching of STEAM subjects Training in problem solving and soft skills, e.g. decision making,

communication, project planning

66 For more details on how policy makers can improve teaching techniques and environments, see B20 Future of Work Taskforce Policy Paper (2020). Policy Recommendation 5


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Personalizing learning to individual users and their specific needs, e.g. distance learning, offering electives, stronger internationalization 67 68 69

HOW WE LEARNIntroducing new ways of teaching and new learning methods facilitated by digital technology:

Blended learning where students learn via electronic and online media as well as traditional face-to-face teaching

Flipped classrooms where students are introduced to the learning material before class through an online platform and classroom time is devoted to deepening understanding through discussion with peers

Massive Open Online Courses (MOOCs) where a large group of students access an online course for free

Tailoring nano-degrees to allow individuals to acquire the required level of skills instead of following a whole degree

Using digital tools for lifelong learning to allow each person to learn at their own speed and within each individuals personal context

Offering frequent transitions between structured and unstructured learning modes, e.g. gamification with real-time support and feedback

Making learning measurable for learners through the use of dual accreditation via academic qualifications and industry certification as well as celebration of success. 70 71 72

EXHIBIT XCase Study on how Corona is influencing new learning methods

>> Work in progress <<

67 BCG Megatrends in Higher Education (retrieved from website on 5th March 2020)68 BCG (2018) A CEOs guide to Leading and Learning in the Digital Age69 WEF (2020) Two things that need to change for the future of education70 BCG Megatrends in Higher Education (retrieved from website on 5th March 2020)71 BCG (2018) A CEOs guide to Leading and Learning in the Digital Age72 WEF (2020) Two things that need to change for the future of education


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New digital learning methods will also help bridge the social digital divide (mentioned under policy action 4.1) by providing access to education to people from differing countries, locations, ages, time and resource availabilities, learning speeds and age. Device access and internet access need to be major government priorities to ensure that digital learning mitigates rather than exacerbates socio-economic divides.On top of future-proofing the education system (what and how) as outlined above governments can help businesses to bridge the digital skill gap by including by including the following levers into their national digital education strategy:

Continuously forecasting workforce and skills gaps: Governments should collaborate with the private sector to develop industry-wide skill forecasts and create quantitative models for forecasting workforce demand and supply.

Active role in matching skills and jobs: Government should partner with businesses and education institutions to create digital heat maps of particularly sought after (digital) skills that they can prioritize accordingly. 73

Establish individual learning accounts: Government should collaborate with businesses cultivating a lifelong-learning mindset by helping employees save for training purposes through individual learning accounts jointly financed by employers, government, and employees that stay with the employee. 74

Offer incentives for corporate spending on learning: Governments can offer tax breaks to encourage organizations to devote resources to training, e.g. off and on the job training initiatives and promotion of learning culture:

o Reskilling: Teaching new skills to employees/candidates to do a different job

o Upskilling: Teaching skills for employees be able to better carry out their current job

Remove barriers to labour mobility: governments can remove barriers to work-related mobility by recognizing the qualifications, certifications, or accreditations that a job candidate earns in a different country, industry, or job role.75

73 For details on how policy makers can strengthen public-private collaboration to align skills supply and demand, see B20 Future of Work Taskforce Policy Paper (2020). Policy Recommendation 474 For details on how policy makers can build lifelong learning systems, see B20 Future of Work Taskforce Policy Paper (2020). Policy Recommendation 675 BCG (2019) Decoding global trends in upskilling and reskilling




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Policy Action 4.3: Providing more digital job opportunities to women - The G20 should

Create awareness on how to reduce barriers and wage gaps for women in global and national tech and digital companies especially in leadership positions together with the private sector.

Set up a dedicated fund together with the private sector such as the female founders’ fund that supports women to become founders of tech and digital companies.


Advancing digital employment opportunities for women is particularly relevant as a) Shortages in digital labor supply are increasing, e.g. 1.1 million

computing-related job opening in the US by 202476 and more than 750 000 unfilled jobs in the European ICT sector today already77.

b) Women are particularly vulnerable to job loss from automation and AI.78

G20 leaders first committed to “women’s full economic and social participation and expansion of economic opportunities” and “gender equality in all areas, including skills training, wages and salaries, treatment in the workplace, and responsibilities in care-giving” in Los Cabos in 2012.79 In the following years G20 leaders agreed to

“give attention to groups, (e.g. women) facing the greatest barrier to finding or remaining in employment”80

“reduce the gap in participation rates between men and women in our countries by 25 per cent by 2025” 81

“economic growth that serves the needs of everyone… in particular women”… through entry of women into the fields of science, technology

76 BCG (2018) Winning the Race for Women in Digital77 WEF (2019) The digital skills gap is widening fast. Here’s how to bridge it78 IMF(2019) Is Technology Widening the Gender Gap? Automation and the Future of Female Employment79 G20 Leaders Declaration (2012, June 19) Los Cabos, Mexico80 G20 Leaders Declaration (2013, September 6) St. Petersburg, Russia81 G20 Leaders Declaration (2014, November 16) Brisbane, Australia


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and innovation, seizing opportunities from the new industrial revolution, taking advantages of global value chains 82

“enhanced equal access to the labor market, property, quality employment and financial services for women… through provision of quality education and training, supporting infrastructure, public services and social protection policies and legal reforms ” and the launch of the #eSkills4Girls initiative 83

“promote women's access to leadership and decision-making positions, the development of women and girls' digital skills and increasing their participation in STEM (Science, Technology, Engineering, and Mathematics) and high-tech sectors” 84

“close the digital gender gap, (…) continue enhancing girls' and women's access to digital technology with a focus on the needs of those in poverty and rural areas, (…) reaffirm the importance of taking measures to eradicate all gender-based violence, abuse and harassment, including in the digital context. Further emphasis was laid on “increasing participation” of women,, (…) improving the quality of women’s employment”, supporting girls’ and women’s education and training, (…) enhancing girls' and women's access to digital technology with a focus on the needs of those in poverty and rural areas (…) promote women's access to managerial and decision making positions and foster women business leaders and entrepreneurship. 85

All these efforts also drive achievement of the SDGs: SDG 4 Quality Education including Target 4.3 equal access for all women

and men to affordable and quality technical, vocational and tertiary education, including university, Target 4.5 eliminate gender disparities in education and Target 4.6 ensure that all youth and a substantial proportion of adults, both men and women, achieve literacy and numeracy

SDG 5 Gender Equality, in particular Target 5.b using information and communications technology, to promote the empowerment of women.

SDG 8 Decent work and economic growth including Target 8.5 full and productive employment and decent work for all women and men.

However, barriers for women wanting to enter tech and digital companies still persist, as women constitute only 25% of the STEM workforce and just 9% of

82 G20 Leaders Declaration (2016, September 5) Hangzhou, China83 G20 Leaders Declaration (2017, July 8) Hamburg, Germany84 G20 Leaders Declaration (2018, December 1) Buenos Aires, Argentina85 G20 Leaders Declaration (2019, June 29) Osaka, Japan


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STEM executive leadership. 86 Likewise, they only represent a small fraction of inventors. [See exhibit X]

EXHIBIT XShare of women in STEM fields


Share of female inventor in STEM fields

86 BCG (2018) Winning the Race for Women in Digital


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Source : BCG (2018) Winning the Race for Women in Digital; UK Intellectual Property Office (2019) Gender profiles in worldwide patenting

Barriers include: Lower numbers of women studying science, technology, engineering, and

math (STEM) subjects at school and university (The number of women studying STEM subjects has remained as low as 35% in the past 15 years.87)

Male dominated workplaces and cultures as well as long hours, especially in startups (Over time, fully 52% of highly qualified females working for Science, Engineering and Technology companies quit their jobs, driven out by hostile work environments and extreme job pressures.88)

Lack of female role models.89

Lack of access to start-up capital for female entrepreneurs.90

87 UNESCO (2017) Institute of Statistics 201788 Hewlett et al. (2008), The Athena Factor: Reversing the Brain Drain in Science, Engineering, and Technology89 HBR (2014) What’s Holding Women Back in Science and Technology Industries90 Boston Consulting Group Want to Boost the Global Economy by $5 Trillion? Support Women as Entrepreneurs


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Several actions can be taken by government leaders to create awareness on the barriers as well as on the wage women face to enter global and national digital companies as employees and leaders91:

Driving communication campaigns to increase awareness of employees and managers in digital companies of the barriers women face and how to overcome these, e.g.

o Adapting their recruiting through having targeted female only recruiting initiatives and hiring women from non-traditional technology backgrounds and giving them the training required for them to be successful in the job

o Creating a company culture that values diversity and works to build an inclusive culture for a wide variety of people and valuing wellbeing and work-life balance by providing flexible hours

o Developing and growing the skills of women in digital roles and strengthening their function as role models

Encouraging girls and women to study STEM subjects and overcoming gender stereotypes through organizing Open University and research institution days for girls and women, driving communication campaigns on STEM careers and advancing female mentoring networks.


In 2017 the G20 member countries launched the #eSkills4Girls initiative in order to tackle “the existing gender digital divide in particular in low income and developing countries, (…) increase the access of women and girls in the digital world and to boost relevant education and employment opportunities.” 92

Lastly, G20 member countries together with the private sector could address the lower access to funding women experience: In the first three quarters of 2019, female-only founded teams were able to raise $3 dollars for every hundred dollars spent. (In comparison, $87 dollars of funding went to male-only founded teams and $10 dollars to co-found Startups.) 93 94 [See Exhibit X]

91 For more details on how policy makers can remove barriers for women and create an equal environment, see B20 Women in Business Action Council Policy Paper (2020). Policy Recommendation 192 #eskills4Girls (retrieved from website on 10th March 2020) 93 Crunchbase (2019, October 17) Q3 2019 Diversity Report: Over $20B Invested In Female-Founded, Co-Founded Startups This Year Alone94 For more details on how policy makers can promote female business ownership, see B20 Women in Business Action Council Policy Paper (2020). Policy Action 2.1




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EXHIBIT XCase Study Beyond the Billion


Source : TBD

Conclusion: >> Work in Progress <<


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