Mexico hosts the OECD Ministerial Meeting on the Digital Economy. The first ministerial of its kind on this subject (then called “electronic commerce”) was held in Canada in 1998, and the second one in Korea in 2008; hence Mexico is the third county to have this distinction and the first Latin American country to organise and lead this undertaking. As the use of information and communications technology (ICT) is favourable for productivity across a large number of strategic industries in any economy, we have chosen “Innovation, Growth and Social Prosperity” as this year’s theme, three goals that can hardly be achieved without the impetus of digital technology. Their infographic highlights some of the challenges ahead.
Ildefonso Guajardo Villarreal, Secretary of Economy, Mexico, and Chair of the OECD Ministerial Meeting on the Digital Economy, writes:
As the use of information and communications technology (ICT) is favourable for productivity across a large number of strategic industries in any economy, we have chosen “Innovation, Growth and Social Prosperity” as this year’s theme, three goals that can hardly be achieved without the impetus of digital technology. Under this axis, we have defined four key areas of discussion to promote the advancement of the digital economy: (1) Internet Openness and Innovation; (2) Trust in the Digital Economy; (3) Building Global Connectivity; and (4) Jobs and Skills in the Digital economy.
Take the first topic, Internet openness and innovation. It is essential that the participating governments focus on keeping the Internet free and accessible, so that all individuals can use it to exchange information, build and link networks, without restriction or permission from authorities, as it has been to the present day. These data flows are important to trade, innovation, entrepreneurship, growth and social prosperity. Promoting the open, distributed and interconnected nature of the Internet and encouraging multi-stakeholder co-operation will be key to keeping us on the right path.
Regarding trust in the digital economy, we have come a long way: 18 years ago at the ministerial meeting in Canada, one of the main objectives was to promote the use of electronic commerce; today, in leading countries, for instance in the United States, 90% of Internet users undertake online banking transactions and 80% carry out purchases online. Despite this breakthrough, in some regions, distrust of electronic transactions prevails, so we must develop the mechanisms to ensure the security of users’ data.
Higher connectivity has been achieved in the last decade, allowing us to move from the era of “Internet People”, to the digital era of the “Internet of Things”, where the number of connected devices exceeds the number of connected people. And the trend will continue: it is estimated that by 2022 there will be 14 billion connected household devices in OECD member countries. This implies significant technological advances, but also policy challenges to facilitate the development of these technologies and at the same time, help strengthen the privacy of its users.
The Digital Economy and the Internet of Things are revolutionising not only the way we consume, but also the way we work, altering labour market needs. According to the OECD, 65% of today’s children will have jobs that have not yet been invented. This means that knowledge and skills required to enter the labour market will be very different from those provided by the current educational model. Therefore, the fourth area in which we must work, is to create new approaches to education and more flexible training and competencies, so as to allow the integration of students within highly technological environments.
The current period of rapid technological progress is leading us into a new era of disruption, where the way we interact, consume and work, is constantly being transformed by new technologies. This means that the results we achieve in these four key areas will be the foundation that will allow us to move forward..
In the era of disruption, governments along with all stakeholders, need to work together to design strategies and promote comprehensive efforts to facilitate the transition, for our economies and especially for human capital, towards knowledge-based, innovative, growth. The celebration in our country of the OECD Ministerial Meeting on the Digital Economy is an important step in that direction for Mexico. We will concentrate all of our efforts, so that the Cancun Ministerial Declaration can become a work agenda which, through collaboration, will promote growth and prosperity for all.
Angel Gurría, Secretary-General of the OECD writes about the social compact for the digital age:
The Internet is now an essential part of our lives and a critical element of the world economy. Internet penetration increased almost sevenfold in the past 15 years, from 6.5% of the world population in 2000 to 43% in 2015.
The expansion of broadband networks has already brought 3.2 billion people online worldwide. Some 116 billion devices are already connected to the Internet and this number is growing faster than the number of Internet users. Internet and software companies such as Facebook, Apple and Google have all overtaken traditional companies such as GE or Exxon Mobile.
These examples are just a foretaste of how fast the Internet is transforming our economies, our societies and our cultures. That is why we must strive to get the rules governing this incredible platform for growth and social well-being right. The “One Internet” report from the Global Commission on Internet Governance sets us on the right path.
Three lines of action in the report particularly resonate with the OECD:
First, the need to increase access for a truly inclusive global digital economy. Access to the Internet is essential to benefit from the digital economy. Yet, over 50% of the world population remains offline, most of them living in emerging and developing countries. To increase access and make it affordable, policy leaders must encourage private investments and promote competition among providers, while increasing digital literacy. But we must also support governments in developing countries who want to provide free access internet spaces for their citizens.
Second, the importance of promoting Internet openness. The Internet is a global network of networks. We can capture its full potential only if we preserve the global free flow of information and promote the cross-border delivery of services. As the report notes, the open and accessible qualities of the Internet are the very qualities that encourage creativity and innovation. This is why the OECD has made Internet Openness and Innovation one of the four themes of our ministerial meeting on the digital economy this June.
Third, the undisputed necessity of building an environment of trust. Lately, many important companies such as Target, Home Depot, eBay or LinkedIn reported hacks and data breaches. Public safety is challenged when criminal and terrorist networks exploit the Internet, while important financial losses can result from cybercrime. We need to do more to strengthen trust across borders. Policy leaders, the private sector and civil society must join forces to effectively manage digital risks. Otherwise, as the report notes, users will modify their behaviour, and the online engagement that has made the Internet such a successful platform for growth, development and innovation will be eroded.
Besides these key areas of action, the report also touches upon a wide range of forward-looking aspects that are worth pointing out. It includes a framework to understand the Internet as an ecosystem of technologies, protocols, hardware, software and content, as well as recommendations to ensure human rights for digital citizens.
The report is also a call on governments, corporations, civil society, the technical community and individuals to create a new social compact for the digital age: a social compact that may bring about a completely new mode of interaction, of exchange of ideas, of negotiation that could also enhance policymaking processes in all areas, with the idea of making them increasingly open, transparent and, in the end, democratic.
Getting Internet governance right has never been more pressing. In the past few years, we have benefited significantly from the expansion of the Internet, the most powerful information system the world has yet seen. But this outstanding evolution has brought new challenges that we must address, collectively, if we want to keep an accessible, inclusive, secure and trustworthy Internet.
