We’ve reported before that US authorities have been warning against imminent cyberattacks from Russia. This time, it’s the cybersecurity authorities from the Five Eyes – Australia, Canada, New Zealand, the UK, plus the USA – who are warning of the risk that cyberattacks are being planned against critical infrastructures in Ukraine and beyond.
The warning comes in a joint cybersecurity advisory, which refers to US intelligence that the Russian government may be exploring options for potential cyberattacks.
The advisory also notes that cybercrime groups that have recently publicly pledged support for the Russian government ‘have threatened to conduct cyber operations in retaliation for perceived cyber offensives against the Russian government or the Russian people.’ The same threat exists for countries and organisations helping Ukraine.
The Irish Minister of Education, Norma Foley, announced the publication of the Digital Strategy for Schools to 2027 and the payment of €50 million in grant funding for digital technology infrastructure to recognised primary and post-primary schools. The strategic objectives are set out under three pillars to ensure that the school system is prepared for and continues to apply digital technologies in teaching, learning, and assessment. The strategy has also addressed inclusion, supporting curricular reform, online safety, and technical support.
The Abu Dhabi Arabic Language Center (ALC) has launched the Digital Arabic Lexicon website. The objective of the website is to promote arabic language by supporting and enhancing online arabic content. It also aims to establish an integrated digital reference for Arabic speakers and non-speakers. The website is a platform which provides access to vocabulary and meanings in alphabetical order in both Arabic and English languages. Featuring the most common Arabic expressions, the website is a tool to position Arabic language as a leading language in the cultural, creative, and academic fields.
Poland has blocked the compromise proposal for an EU directive to implement Pillar Two of the OECD’s global tax package, saying that the Two-Pillar solution needed to be tackled together within the same directive. The vote took place during today’s Economic Financial Affairs Council (ECOFIN) meeting (5 April 2022), the third this year.
Disagreements among the EU’s finance minister over the proposed EU directive, published in December 2021, led the French to table various compromise proposals. France had hoped that all the disagreements would be resolved by today’s ECOFIN meeting. Estonia, Malta, and Sweden were among the governments to resist the directive, but joined the majority during previous meetings.
The first Economic Financial Affairs Council (ECOFIN) meeting on 18 January 2022
In response to the Polish veto, French Finance Minister Bruno Le Maire said that he was ‘not convinced by the Polish argumentation’, and reiterated that France ‘would continue to pursue this goal, which we believe will be a step forward, until it is adopted.’
The proposed directive must be passed unanimously by EU member states in order to become law.
Next wave of digital outsourcing of white collar jobs starts 3
The pandemic years set the stage for the next wave of digital outsourcing, which will mostly affect white-collar jobs.
First, remote working became the “new normal.” Second, many white-collar jobs, from office administration to legal help and design, have been digitalized via Zoom and other online collaboration platforms. Third, companies and organisations have accelerated the migration of their archives and operational assets to digital clouds.
The framework for the next wave of digital outsourcing has been set. According to the Economist, it has the potential to generate a half-trillion-dollar economy.
Digital outsourcing will happen in fast-changing circumstances with less input from Ukraine and Russia, important outsourcing and software development economies. Geopolitical tensions with China and ‘de-globalisation’ trends will affect the geography of outsourcing.
India will be the main winner of the new wave of digital outsourcing. Already, outsourcing makes up 5.6% of the Indian economy. However, it won’t be plain sailing for India’s outsourcing industry due to a few problems:
a push for outsourcing in the same region and time zone;
drive in many countries to reduce cross-border data flows, especially in critical and confidential domains;
protectionism and push for employing the local workforce.
In these circumstances, new possibilities for digital outsourcing will open for neighbouring regions to Europe (Balkans and Mediterranean) and the United States (Central and South America).
Main brands are increasingly relying on influencers to be their ambassador.
China, where influencers became more prominent earlier than in Western countries, is estimated that influencers contribute 1.4% of the country’s GDP. The Economist explains how the rapid rise in economic importance of influencers opens many businesses, regulatory and policy issues.
Influencers are becoming a strong competitor for traditional brand ambassadors (actors and sportsmen, etc.).
Influencers have a greater impact on Gen-Z who will become the major consumers in the coming years.
China will regulate influencers’ economic and Internet roles. Other regulators have plans for influencers to indicate their posts in advertisements.
On the risk side, influencers could ‘cheapen’ some brands, such as Louis Vuitton.
For advertising companies, influencers are also more difficult than traditional brand ambassadors to manage and direct
Major brands will need more influencers to help them with their advertising campaigns, despite all possible difficulties.
The second substantive session of the OEWG 2021-2025 was held from 28 March-1 April 2022, in-person in New York (with a webcast through UN WebTV). Using an informal mode, the group discussed substantive issues under its mandate: the existing and potential threats in the ICT sphere and data security; rules, norms, and principles of responsible behaviour of states in cyberspace; how international law applies to the use of ICTs by states; confidence-building measures; and capacity building.
The discussions were overtaken by an organisational issue: the modalities of stakeholder participation. The Ukraine conflict heavily impacted the discussion on threats. Importance of the existing framework of responsible behaviour was re-affirmed, yet discussions about the necessity of developing a new legally binding instrument continued. Main progress was made in the area of confidence building measures, where several proposals got general support (such as the implementation of the national survey of implementation of the UN framework, and the establishment of the points of contacts directory. Programme of Action, as a possible second process running in parallel with the OEWG, gained support of more countries, but it’s format and mandate is not clear yet.
In times of crisis, cryptocurrencies emerge as safe ways to store wealth along with gold or the Swiss Franc. For instance, the volume sold of bitcoins jumped tenfolds in Russia since the start of the war.
The effectiveness of cryptocurrencies in bypassing sanctions is less than it may be thought. Namely, cryptocurrencies lose their anonymity when they must be converted into FIAT currency (euro, USD or CHF). Crypto exchanges have to implement ‘know your customer’ (KYC) principle, the basis for anti-money-laundering regulations.The majority of crypto exchanges are located in the USA and must adhere to US sanctions laws.
The fastest and most efficient way to raise funds is through cryptocurrencies.The Ukrainian government raised over US$100 million using crypto tokens.
Finance ministers from Sweden, Poland, Malta, and Estonia have withheld their support for the compromise proposal on the Pillar Two draft directive introduced in December 2021. Although the proposed directive still lacks unanimous support, the lack of support from only four member states is an improvement over the previous Economic and Financial Affairs Council (ECOFIN) meeting in January 2022.
In between meetings, France, which is currently holding the presidency of the EU Council, offered a compromise proposal on March 12. The compromise text extended the deadline to transpose the rules into domestic law to 31 December 2023. The deadlines for other rules were also extended. Since member states requested that the implementation of both pillars of the plan be directly linked, France suggested including a statement confirming the commitment of all member states to the ongoing process on Pillar Two.
However, speaking during today’s Economic and Financial Affairs Council (ECOFIN) meeting (15 March 2022), the countries cited various concerns related to the timeframe (not enough time), and to the linking of the two Pillars (work and schedule of both Pillars need to be linked).
French finance minister Bruno Le Maire remains optimistic that an agreement is reached by the next ECOFIN meeting on 5 April 2022.
The OECD has released additional technical guidance on the 15% global minimum tax agreed in October 2021 as part of the Two-Pillar solution to address the tax challenges arising from digitalisation of the economy. The model rules on Pillar Two were published in December 2021.
Pillar Two consists of two rules intended for introduction in national domestic tax laws – together known as the Global anti-Base Erosion (GloBE) rules – as well as a treaty-based rule. The technical advice issued today is composed of a commentary to the GloBE rules, which includes clarification of certain terms to ensure consistent interpretation, and examples illustrating the rules.
