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A Western Digital Renaissance: drivers and boundaries

    • Venice
    • 23 October 2015

          The starting premise of discussions at this International Conference was that there can be no doubt over the internet’s role today, and in the future, as the major driver of growth – just as the automobile was in the past, with its allied infrastructure and linked industries, and with the creation of new social realities, changed habits, and altered lifestyles. It was noted, however, that the digital revolution goes a step further, as the size of this new “engine” is, in fact, ontologically driven. While this new driver’s great capacity for growth has been acknowledged, the limits of its potential expansion are yet to be determined. What is certain is that the old rules cannot simply be made to fit and apply to this new reality.

          In this regard, the participants firstly observed that the internet is breaking down the concept of the nation-state: wealth is being developed beyond its place of origin, and the confines of a given territory no longer delimits the reach of a network nor the jurisdictional expanse appropriate for its oversight. Digital disruption is taking place in sectors spanning finance, banking, medicine, big data, and welfare. It is also resulting in a devolution of authority, and this applies to governments and parliaments as much as to religious leaders and military authorities. For institutions that have always functioned in a top-down manner, the peer-to-peer systems characteristic of the internet lead to management difficulties and a diminution of power.

          With national sovereignty faltering, cyberspace could become a battleground – actual wars now being unlikely given that nuclear deterrence continues to be effective – where states vie for position. As knowledge is power, the cyberworld can sometimes impinge on democracy, with a huge risk of creating a surveillance state. The participants felt that this has already been demonstrated – albeit in different ways – by the Snowden case and the failed revolution in Iran. While technology may bring disruption, the latter is not always consonant with democracy, but sometimes with anarchy and at times with dictatorship. Similarly, digital disruption can heighten ideological extremism: that of al-Qaeda and even more so of ISIS, feed and breed on the internet, promoting the emergence of a powerful propaganda apparatus. Figures were cited showing that in the Arab world there were 40 million internet users in 2011, whose numbers have now risen to 100 million – a phenomenon that the dictators who were toppled in the Arab revolutions of 2011, in which social media had a multiplier effect, did not understand at all.

          The consensus was that the move towards digital is irreversible the world over: in Italy, as in France, 70% of people get their news and information online. In Europe, the applications market already accounts for 1.3 million jobs and generates 17 billion euro in turnover for the ICT sector, which is anticipated to rise to 70 billion within three years. Divergent perspectives also persist between the United States and Europe: for Americans, users are viewed as consumers, while in Europe, the issue of identity prevails.

          Europe is seriously lagging behind, with heavily fragmented policies. A number of those in attendance accordingly pointed to the need for a radical change in perspective – one which would consider digital platforms as the established norm and make analog platforms subject to charge. There were also many who supported the idea of a European digital market. The key facilitator of the new order of the digital age should, according to some participants, be the ability of governments to coordinate innovation policies.

          The relationship between Europe and the United States in this sector was seen as characterized by  highs and lows. The hope was expressed, especially by representatives from the business community, that there would be a more open approach adopted in negotiations over the chapter of the Transatlantic Trade and Investment Partnership agreement dealing with digital issues. It was also urged that data should be able to flow freely, albeit with due regard to privacy. The recent ruling on the impossibility of selling anonymous data has impacted on American companies. Even so, it was acknowledged that there is a much greater exchange of data between the transatlantic partners than with Asia and Latin America. China has a strategic vision of its future in the sector, with 19 trillion dollars set to be invested in anticipation of the major revolution that the introduction of 5G technology will bring. This also presents an opportunity for Europe, though it was suggested that greater efforts are needed to harmonize regulations between the two areas in order to bring them more into line with each other.

          In concluding, it was emphasized that the digital era is forcing rapid change and calls for the establishment of general principles from which to formulate rules. In Europe, especially in recent years, the absence of a framework of basic rules has meant that, currently, much of the legal governance of the sector has been relegated to self-regulation of conduct or to interventions by the European Court of Justice, which, according to many, has had to step in to fill the breach. For the future, it was proposed that a laissez-faire approach be adopted. A number of those present expressed a preference for a more regulated market, stressing that regulatory standards such as interoperability and shared business models like roaming were instrumental to the ICT successes of the past. It was in any event seen as up to political leaders to step up efforts on this front, perhaps by envisaging a “multi-stakeholder” agreement that brings together governments, institutions, private firms, and civil society.

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