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African approaches to Cross-border Data Flows (GIZ)

Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

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Kholofelo Kugler

Africa’s digital economy is projected to be worth $300 billion by 2025, highlighting its immense potential. To fully harness this transformation, data flows are essential, especially for micro, small, and medium enterprises. Companies that connect online have a higher likelihood of exporting, and access to e-payments and credit insurance services through the internet can assist businesses that struggle to obtain these services. However, the current data governance in Africa is inadequate, with only 61 percent of African countries having data protection laws. Existing regulations like the GDPR may not be suitable for Africa’s unique circumstances, emphasizing the need for a tailored data governance framework. The management of data in Africa is complex, requiring the merging of different legislation and models. Furthermore, privacy and consent models need to consider the variations in African contexts, including different levels of education across the continent. Data stewardship and a multi-stakeholder approach to data governance are potential solutions to address these challenges. Other obstacles to Africa’s digital landscape include the preference of African startups to set up in other locations due to better treatment and the lack of compliance and inter-regional cooperation. Additionally, data centers in Africa are owned by foreign companies, highlighting the importance of African countries having their own data privacy legislation. In conclusion, Africa’s digital economy has immense growth potential, but addressing the gaps in data governance is crucial. A tailored data governance framework, collaboration between stakeholders, and control over data centers will ensure economic development while respecting local contexts and protecting citizen’s privacy and rights.

Linda Bonyo

The discussions on cross-border data flows within the African context have been emphasised as important, as African perspectives on data flows are often overlooked in global discussions. The relevance and application of the Malabo Convention, a policy reform around data protection in Africa, are being questioned. Different countries in Africa have varied approaches to data transfers, which creates challenges for businesses, particularly in e-commerce. For example, Kenya, Nigeria, and South Africa have a conditional transfer approach, while Rwanda has taken a limited transfer approach. The lack of harmonisation in regulations on data transfers within the African continent creates further challenges for businesses, making trading within the African continent difficult due to divergent regulations in different countries. In contrast, the European Union (EU) has harmonised legislation that aids easy compliance for businesses within its 27 member countries.

Concerns have been raised about borrowed data being processed outside of the local ecosystem. Data collected in Kenya, for instance, is processed in Silicon Valley, creating a disconnect with local ecosystem insights. This has led to calls for better understanding, transparency, and accountability in cross-border data flows. Advocates argue that it is important to acknowledge who is using the data and for what benefits. Furthermore, they emphasise the need to know how indebted persons are and how to model financial mechanisms.

The difference in perspectives of data privacy between Africa and the West has been highlighted. In Africa, the idea of privacy is influenced by cultural differences, such as communal living, which makes adopting the General Data Protection Regulation (GDPR) perspectives in Africa challenging. Additionally, the current implementation of data privacy in Africa is seen as impractical due to limitations faced by the data commissioner, such as budget and political influences. The current formula of GDPR may not work effectively in Africa.

Various challenges are faced by different African countries in implementing digital technologies and regulations. Some African countries, such as Somalia, are facing challenges in implementing digital ID systems due to the need to establish foundational documents before implementation. Additionally, Africa is not a homogeneous continent, with different countries at different stages of privacy and data protection conversations.

The Africa Free Trade market presents an opportunity to harmonise regulations and benefit Africa. Harmonising regulations could facilitate business expansion and allow African countries to not only copy the GDPR but also create their own regulations. However, the visa regime within Africa continues to hinder the free movement of people and business opportunities. The requirement for visas to travel within African countries is a barrier that prevents Africans from taking advantage of opportunities in different countries. This has led to a call for fixing the visa regime.

Advocates argue that data governance needs to be addressed in development cooperation agreements. The ecosystem approach is considered the best way to solve problems, emphasising the importance of collaboration and considering different perspectives. Furthermore, the issues of infrastructure in Africa have been highlighted, hindering street localisation and compliance. Limited resources, such as electricity or expensive generators, make it challenging to meet compliance standards.

The use of data for societal improvement, such as cancer research, is advocated for. Data can be utilised for purposes other than politics, and there is a preference for using data to cure cancer rather than for political gain. However, the unfavourable local business environment in Africa has led to African businesses setting up outside of Africa. Harsh business environments force companies to set up outside, and they only use African markets for trading purposes. This calls for treating African companies better and creating a more conducive business environment.

In conclusion, discussions on cross-border data flows within the African context are of utmost importance, as African perspectives are often overlooked in global discussions. The challenges and variations in data transfers and regulations within Africa create obstacles for businesses, particularly in e-commerce. Concerns about borrowed data being processed outside of the local ecosystem, as well as the impracticality of current data privacy implementations in Africa, indicate the need for better understanding, transparency, and accountability in cross-border data flows. The visa regime, infrastructure issues, and unfavourable local business environment are additional barriers that need to be addressed to foster economic growth and development within Africa. Harmonising regulations and utilising data for societal improvement are potential solutions to promote a thriving business environment and economic opportunities in Africa.

Auidence

The discussions during the event focused on various key topics related to data infrastructure, ownership, regulation, and privacy in Africa. One major point of discussion was the role and potential challenges posed by big tech players in Africa. The audience expressed skepticism about the ownership of data infrastructure by these players, raising concerns about data control and regulation in the region.

Another area of concern was the impact of the e-commerce joint statement initiative on Africa’s data privacy efforts and cross-border regional data flows. It was highlighted that the latest draft of the initiative could potentially ban any restrictions on data flows, potentially hindering Africa’s efforts to protect data privacy. Furthermore, the draft had conditions regarding privacy exceptions that might negatively impact Africa’s data privacy initiatives. It was also mentioned that the United States was reconsidering its position on data flows, further adding to the complexity of the situation.

The discussions also emphasized the importance of data compliance literacy and the prevention of mobile money fraud in Ghana. A speaker from a tech startup in Ghana shared their experiences of facing challenges with fraud in mobile money transactions. They highlighted how scammers access people’s phone numbers from physical transaction records and use the information to commit fraud. This undermines trust in digital payment systems and hampers the company’s efforts to digitize their business.

Regarding data governance, the need for creating data agreements in Africa was discussed. The speaker was curious about the potential complexities and challenges that might arise from establishing similar data agreements within Africa. Notably, the discussions also raised questions about the potential political policies or processes that could accompany data agreements in Africa.

The need for developing interoperable data flow mechanisms and advocating for equal opportunities in the digital economy and data governance in Africa was highlighted. The Digital Cooperation Organization, which conducted a study on cross-border data flows, was mentioned as a platform to explore mechanisms for member states or African countries to effectively communicate with each other. The organization currently has 15 member states, half of which are from Africa.

Additionally, concerns were raised regarding the disparity in control over the digital economy and data governance in Africa. It was noted that ten countries control 94% of all online businesses in Africa, and five countries hold almost 78% of e-commerce. This concentration of control raises questions about equal opportunities and reducing inequalities in the region.

Furthermore, regulatory agencies, such as the Nigeria Customs Service, highlighted the need for data sharing across borders for clearance of e-commerce goods and agency operations. They emphasized the importance of sharing data for regulatory practices and acknowledged the potential benefits of boosting intra-Africa trade in aiding regulatory and security purposes.

Overall, the discussions shed light on the various challenges and opportunities regarding data infrastructure, ownership, regulation, and privacy in Africa. The participants raised thought-provoking arguments and provided evidence to support their claims. The need for collaboration, data compliance literacy, and equal opportunities emerged as key themes throughout the discussions. The varying perspectives presented during the event showcased both the concerns and potential solutions for addressing these complex issues in Africa’s evolving digital landscape.

Bitange Ndemo

The analysis covers a range of topics related to data and economic development in Africa, highlighting the positive impact that data can have in sectors such as healthcare, e-commerce, finance, and agriculture. It notes that data analysis can enhance agricultural productivity and that e-commerce solutions are beneficial to small enterprises. Additionally, inclusive financial solutions can be built using data.

However, the analysis also underlines the need for mechanisms to ensure that everyone benefits from the data revolution. It points out that citizens may not be aware or benefit from the use of their data. It mentions that Europe is using data for various advancements and expresses a positive sentiment towards this issue.

The importance of understanding cross-border data flow for the growth of micro and small enterprises in East Africa is emphasised. The analysis highlights that data transfer across borders facilitates cross-border trade and that data analysis can help the growth of these enterprises. The sentiment regarding this topic is positive.

On the other hand, the analysis recognises the risks associated with data usage and benefit distribution. It states that although telcos are selling solutions for financial inclusion, citizens may not derive benefits from them. Additionally, the cost of borrowing remains high despite data usage. The sentiment towards this issue is negative.

The analysis suggests the need to determine who uses data and for what benefits. It notes that data is often in the possession of different people who may not address how the providers of data would benefit. The sentiment towards this issue is neutral.

Furthermore, the analysis emphasises the importance of Africa unifying and viewing itself as a single digital market. It underscores the need to consolidate capacity for security measures and improve intra-African trade. The sentiment towards this topic is positive.

The analysis mentions that the EU is making investments in Africa, which is seen as beneficial. It suggests that a healthy relationship between Africa and the EU is important. The sentiment towards this issue is positive.

Regarding legislation and innovation, the analysis mentions that the General Data Protection Regulation (GDPR) implemented by the EU may stifle innovation. It advises Africa to take cues from the EU and India regarding legislation but not blindly adopt their rules. The sentiment towards this topic is neutral.

In terms of research and innovation, the analysis highlights the importance of collaboration between African and European universities. It suggests that this collaboration is crucial for furthering research and innovation. The sentiment towards this issue is positive.

The analysis acknowledges the need for Africa to build its own capacity, particularly in cybersecurity. It notes that the EU has institutions that Africa can work with to develop this capacity. The sentiment towards this topic is positive.

The analysis suggests Africa needs to reform and establish a single digital market to have a stronger influence on big tech. It mentions that such a market would enable Africa to have a louder voice in the digital space. The sentiment towards this issue is positive.

Other topics discussed include the importance of protecting intellectual property for micro-enterprises and the role of market size in regulating the behavior of big tech. The analysis points out that examples of intellectual property theft can be found on platforms like Pinterest, affecting micro-enterprises such as Masai women making artifacts. It also highlights that interference from big tech can create entrepreneurial opportunities. The sentiment towards these topics is generally positive.

Finally, the analysis mentions the importance of visa-free movement within Africa. It notes that Kenya’s approach of not requiring visas for any African country is successful, and other African countries are adopting this approach. The sentiment towards this issue is positive.

In summary, the analysis provides a comprehensive overview of various topics related to data and economic development in Africa. It highlights the potential benefits and risks associated with data usage and underscores the need for fair benefit distribution. Moreover, it emphasizes the importance of Africa’s unity, establishment of a single digital market, and collaboration with the EU for research, innovation, and capacity building. Ultimately, the analysis suggests that strategic initiatives in these areas can contribute to the economic growth and development of the continent.

Abdesslam Benzitouni

Jumia, a multinational company that primarily operates in Africa, heavily relies on data for various aspects of its business. Data is used to enhance customer user experience, improve market accessibility, and drive innovation and growth. The company collaborates with partners and service providers worldwide to effectively gather and utilize data.

Ensuring the security and protection of data is a top priority for Jumia, which invests significantly in cybersecurity measures. They work with different platforms, clouds, and data centers in various countries to safeguard their data from cyber threats.

However, Jumia faces challenges due to regulatory conflicts between different countries. Each country has its own set of regulations, creating complications for international business operations. For example, conflicts between Indian and African regulations led to issues while working with an Indian company. Adapting to different regulations becomes necessary for operating in various countries.

To address conflicting regulations, Jumia follows the General Data Protection Regulation (GDPR) as a guideline for data protection. However, GDPR may not always be suitable for every country, as adopting it may not address specific issues related to mobile money customers or similar scenarios.

Counterfeit and copyright infringement products are significant concerns for Jumia. The company acknowledges the magnitude of this problem in many countries and emphasizes the importance of strict guidelines and consistent checking to identify and prevent the presence of counterfeit products on their platforms. Jumia implements strict guidelines with vendors and conducts thorough product checks to ensure authenticity and legality.

Education and regulatory support are essential in combating counterfeit and copyright issues. Despite efforts, challenges persist, as some vendors may still sell counterfeit products. Continuous education and regulatory support are necessary for effective management of these issues.

Fraud and cybersecurity are significant concerns for Jumia. The company faces daily cyber attacks and has made substantial investments in cybersecurity measures to protect its operations. Education plays a crucial role in preventing fraud, and Jumia prioritizes training and awareness programs to mitigate these risks. The Ukraine-Russia conflict led to a surge in attacks, highlighting the vulnerability and prevalence of cyber threats in the online business landscape.

Jumia’s decision to register in Germany is aimed at establishing investor confidence. Investors such as Goldman Sachs and Orange have suggested Germany as a suitable location for registration due to the protection it offers for large amounts of money.

Despite the challenges faced, Jumia remains committed to operating primarily in Africa. The company’s customer base is exclusively African, and it operates in 11 African countries. Jumia supports the local economy by partnering with local small and medium-sized enterprises (SMEs) as vendors and employing local talent, contributing to the growth and development of the African economy.

In summary, Jumia heavily relies on data for various aspects of its business and prioritizes data protection and cybersecurity. Regulatory conflicts pose challenges that require adaptability to different regulations across countries. Counterfeit and copyright issues are significant concerns that demand strict guidelines, consistent checks, education, and regulatory support. Fraud and cybersecurity risks necessitate continuous investment in cybersecurity measures and education. Jumia’s decision to register in Germany enhances investor confidence, while maintaining a strong focus on operating primarily in Africa and supporting the local economy.

Tevin Gitonga

The analysis explores the significance of data protection laws and guidelines, focusing on the impact of the General Data Protection Regulation (GDPR) in digital trade, data flows, and the African data market. One key finding is the positive influence of GDPR as a global standard for data protection laws, with many African countries adopting similar legislation. GDPR guidelines are also considered in data-driven industries, reinforcing its recognition as a benchmark for data protection. The analysis highlights the importance of data protection in digital trade, as neglecting it undermines operations. The U.S.-EU privacy shield is cited as an example of the impact of data protection laws on international agreements. The potential of the African data market is emphasized, as it offers vast opportunities for economic growth. Effective data policies are crucial for unlocking this market’s potential. The analysis argues for the coexistence of data protection laws and trade, stating that they can thrive together with proper implementation. The analysis also discusses a Pan-African approach to data flow and views existing data protection laws in Africa as an opportunity rather than a threat. Enforcement challenges in data control are addressed, with discussions on joint investigations as a means to tackle them. The analysis notes the recognition of Africa as a new data resource by big tech companies, highlighting the market’s value. The importance of data literacy in preventing breaches is emphasized, with a focus on training vendors handling sensitive data. Mutual legal recognitions are suggested as a solution to international data control issues, weighing politics and risks in granting adequacy. Overall, the analysis provides a comprehensive overview of the significance of data protection laws in various contexts, showcasing the positive impact of GDPR and the potential of the African data market.

Speakers

AB

Abdesslam Benzitouni

Speech speed

184 words per minute

Speech length

1803 words

Speech time

587 secs

A

Auidence

Speech speed

183 words per minute

Speech length

1225 words

Speech time

402 secs

BN

Bitange Ndemo

Speech speed

139 words per minute

Speech length

1646 words

Speech time

709 secs

KK

Kholofelo Kugler

Speech speed

189 words per minute

Speech length

2409 words

Speech time

763 secs

LB

Linda Bonyo

Speech speed

189 words per minute

Speech length

5656 words

Speech time

1800 secs

TG

Tevin Gitonga

Speech speed

232 words per minute

Speech length

2961 words

Speech time

765 secs

African Cross-border Payments: Are Regional Currencies an Answer? (Ecommerce Forum Africa)

Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

Knowledge Graph of Debate

Session report

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Kim Dancy

Kim Dancy, a lawyer with a background in payments regulation, has extensive experience in the field of blockchain and central bank digital currency (CBDC) work. She is particularly interested in emerging technologies and their role in the financial industry. Additionally, Dancy has focused on financial inclusion and has previously worked for a financial inclusion think tank.

Dancy believes that cryptocurrencies can provide viable solutions for cross-border payments on the African continent. She highlights the fact that many payment systems in Africa are currently dominated by US-based companies like SWIFT or the card associations. A significant percentage of transactions on the African continent are routed by the US or the EU in dollars and euros. Dancy suggests that cryptocurrencies offer an alternative solution in cases where formal markets, central bankers, and commercial bankers have failed to provide a reliable cross-border payment system.

Regarding CBDCs, Dancy underscores their potential advantages, including safety, interoperability, innovation, transparency, and rules-based governance. CBDCs are digital versions of cash that are regulated and issued by central banks. They serve as a store of value, a medium of exchange, and units of account. Unlike cryptocurrencies, CBDCs are pegged to a specific currency issued by the central bank, making them less volatile. However, Dancy acknowledges that the launch and adoption of CBDCs may be a time-consuming process due to various complexities.

Dancy supports the idea of central banks coordinating and regulating cross-border transactions. She mentions the Regulated Liabilities Network (RLN) as an example, which aims to make different payment ecosystems communicate with each other seamlessly. Dancy argues that understanding and promoting the complementarity of various ecosystems are essential in this regard.

Furthermore, Dancy emphasizes the importance of intra-African trade and regional payment systems. She asserts that increasing intra-African trade can make African currencies more attractive to each other. Dancy addresses the vulnerability of African economies to shocks and volatilities of global hard currencies, suggesting that promoting regional payments systems can provide a solution and reduce reliance on external currencies.

Dancy also stresses the significance of digital identity for economic inclusion and the establishment of a digital economy. She explains that having digital identities enables individuals to participate in the financial system. Dancy believes that digital identity is key to economic inclusion, allowing more people to access the benefits and opportunities provided by the digital economy.

In conclusion, Kim Dancy, with her expertise in payments regulation and blockchain, advocates for the use of cryptocurrencies for cross-border payments, highlights the potential benefits of CBDCs, emphasizes the importance of coordinating and regulating cross-border transactions, and underlines the significance of intra-African trade, regional payment systems, and digital identity for economic inclusion and the development of a digital economy. Her insights offer valuable perspectives on the current challenges and opportunities in the financial industry.

Kessy Pantaleo

The East African Community (EAC) has implemented the East African Payment System (EAPS) to facilitate cross-border transactions within the EAC region. The EAPS operates in real-time gross settlement using the SWIFT messaging network and allows for settlement in local EAC currencies. It commenced operations in 2014 and has played a crucial role in promoting trade and economic integration within the EAC.

The EAPS has proven effective in reducing transaction costs and decreasing the reliance on hard currencies in the region. Charges for cross-border transactions through the EAPS are equivalent to those for local transactions, thereby encouraging businesses to utilize the system. Consequently, the use of US dollars and other hard currencies for cross-border transactions in the EAC region has significantly declined.

Despite its success, the EAPS faces certain challenges that need to be addressed. Commercial banks in the region still heavily rely on foreign correspondent banks for cross-border payments. Additionally, the EAPS has not been widely adopted for low-value transactions, as it has predominantly catered to high-value transactions.

To overcome these challenges, various efforts are underway. These include promoting cross-border retail payment systems, harmonizing payment system policies within the EAC, and integrating with other regional and pan-African payment systems. An initiative is being developed to establish a regional switch that will connect national switches in EAC countries. Moreover, the EAC is actively supporting its partner states in establishing their national switches. The EAC is also engaging in dialogue with the Pan-African Payment System (PAPS) to explore synergies and collaboration in payment system initiatives.

Furthermore, the EAC is actively collaborating with other regional systems such as the Southern African Development Community (SADC) and Commessa to discuss the integration of payment systems. A technical working group has been formed to focus on this integration, and the East African Central Banks have established a Monetary Alliance Committee to collectively make decisions for the region.

In this context, Kessy Pantaleo, an influential advocate, supports a regional approach in engaging with PAPS. Instead of pursuing bilateral engagement, the governors of EAC countries have decided to approach PAPS as a unified region. This strategic move aims to leverage collective strength and address concerns raised by the EAC Central Banks. Multiple meetings have already taken place with PAPS management to explore available options, and the concerns of the EAC Central Banks are being actively addressed.

Overall, the implementation of the EAPS has brought significant benefits to the EAC region, reducing transaction costs and decreasing reliance on hard currencies. However, challenges remain, and ongoing efforts are being made to promote cross-border payment systems, harmonize policies, and integrate with other regional and pan-African systems. The regional approach in engaging with PAPS is seen as a strategic move to foster collaboration and collectively address concerns.

Elydora Matubanzila

Africa has experienced a surge in e-commerce activities since the onset of the COVID-19 pandemic, underscoring the need for efficient, affordable, and speedy payment solutions. The rising number of online transactions necessitates reliable payment mechanisms to ensure smooth operations.

Africa, with its 42 diverse currencies, faces challenges and costs associated with currency fluctuations during cross-border transactions. However, the region already boasts several cross-border payment solutions, which help address these concerns. Additionally, regional initiatives are in place to strengthen cross-border payments, highlighting the importance of efficient payment systems in Africa.

There is growing advocacy for the development of robust and affordable cross-border payment systems, in response to the increasing trend of e-commerce in Africa. With the continent’s shift towards the digital economy, the demand for payment solutions that can accommodate seamless transactions is apparent.

Moreover, plans are underway to integrate other regions into Africa’s trade and payment systems, fostering global trade opportunities and stimulating economic growth. Ensuring affordability in global trade and payments is crucial for inclusive and equitable commerce, considering the varying strengths and vulnerabilities of different currencies, particularly against the US dollar.

Addressing financial inclusion and supporting unbanked individuals and SMEs are pivotal for sustainable economic development in Africa. Institutions like the World Bank, IMF, IFAD, and FinCIS are already providing financial support to address this need. Notably, the Technical Committee for Regional Banking (TCRB) has received funding from the World Bank and the Bill and Melinda Gates Foundation to advance its initiatives.

Trust is a fundamental pillar of global trade and finance. Establishing trust among stakeholders is essential to ensure transparency and security in transactions, fostering economic growth and bolstering institutional strength.

Overall, the surge in e-commerce activities in Africa has underscored the urgency for affordable, efficient, and reliable payment mechanisms. The region already has existing cross-border payment solutions, complemented by regional initiatives. Advocacy for robust payment systems aligns with the rising e-commerce trend. Integration plans with other regions prioritize affordability in global trade and payments. The strengths and vulnerabilities of various currencies, financial inclusion, and stakeholder collaboration play crucial roles in ensuring sustainable economic growth. Trust is a vital element in global trade and finance, necessitating strong partnerships for transparent and secure transactions.

Odette Smit

The analysis highlights several key points regarding cross-border payments and financial inclusion in Africa. The Cross-Border Interbank Payment System (CCIB) is a rail system that aims to drive financial inclusion by providing low-cost and transparent cross-border payment solutions. CCIB originated from the thought process in 2013 and was put into play in 2015. It went live in November 2021 and has been operational for two years, facilitating transactions in three corridors: South Africa, Zimbabwe, and Zambia. CCIB is also working on a hybrid model for digital adoption, alongside regulators.

Banks of Africa advocates for strong collaboration between different ecologies to enhance cross-border transactions. They view themselves as non-competitive and aim to collaborate with all participants in the financial ecosystem for better payment solutions. Their stance is reflected in the slogan “if you want to go fast, go alone; if you want to go far, go together.”

However, one of the challenges faced in the African context is the lack of regulatory alignment among different countries. There is currently no alignment in regulation among the 16 countries in the Southern African Development Community (SADC) region. Most of the regulations were written in the early 1900s, but efforts are being made to update them for future relevance.

Central Bank Digital Currencies (CBDCs) and major transnational corporations (PEPs) are seen as potential tools that the Cross-Border Interbank Payment System (CCIB) could use. CBDCs on a wholesale level could enable better and faster settlements, which would have implications for cross-border payments. PEPs can also play a role in this field, but the challenge lies in the current siloed environment where everyone is solving for one element or section.

Cooperation and trust within the African context are crucial for solving cross-border payment challenges. Organizations like the Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), and the Infrastructure Advisory Committee (IAC) need to work together to solve this problem. A successful example of trust and cooperation leading to an expansion is seen in Tanzania, where an increase in trust and cooperation between three telcos resulted in an expansion of 50% and above.

The importance of instant payment connections in global financial services is highlighted. Although various payment initiatives are happening globally, they are not connected. Singapore and the Philippines have quickly developed instant payment systems, showcasing the significance of understanding what has been done in terms of instant payment connections in global financial services.

Successful implementation of cross-border payment systems requires a change of mindset and collaboration with regulators. Working with regulators to build a centralized environment is important. Trust and understanding are key in this process.

Digital identity is considered the starting point for an inclusive digital economy. It is recognized that digital identity is a prerequisite for individuals to participate in the digital economy.

Finding a solution to cross-border payment challenges requires starting from the beginning and adding elements progressively. Interoperability is a critical baseline in the development of a digital economy solution.

Organizations like the World Bank and the International Monetary Fund (IMF) can be approached by member countries for financial assistance and guidance. The analysis highlights that the Cross-Border Interbank Payment System (CCIB) initially started with funding from the World Bank and the Bill and Melinda Gates Foundation.

The World Bank plays an instrumental role in promoting financial inclusion and establishing trade. They are viewed as advocates for financial inclusion and trade, aligning with the Sustainable Development Goals (SDGs) of decent work and economic growth, and reduced inequalities.

Speakers

EM

Elydora Matubanzila

Speech speed

148 words per minute

Speech length

1863 words

Speech time

756 secs

KP

Kessy Pantaleo

Speech speed

129 words per minute

Speech length

1202 words

Speech time

558 secs

KD

Kim Dancy

Speech speed

175 words per minute

Speech length

3853 words

Speech time

1320 secs

OS

Odette Smit

Speech speed

187 words per minute

Speech length

2316 words

Speech time

743 secs

A digital public infrastructure strategy for sustainable development – Exploring effective possibilities for regional cooperation (University of Western Australia)

Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

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Vahini Naidu

The discussion centered around the challenges and opportunities related to digital public infrastructure (DPI) and brought forth several key points. One of the main concerns highlighted was the current siloed approach, which was found to hinder the formulation of coherent policies and trade negotiations in the realm of DPI. The presence of non-uniform documents and initiatives, such as the Africa Digital Transformation Strategy, the World Bank Group Digital Economy for Africa Initiative, and Africa-EU Digital Economy Partnership, was identified as a factor contributing to this problem. Moreover, it was noted that the provisions of the African Continental Free Trade Area (FTA) are not in sync with other regional and international documents addressing DPI, thereby creating further inconsistencies.

Another point of discussion revolved around trade agreements and their impact on DPI deployment. It was argued that rules negotiated in Free Trade Agreements (FTAs) and the World Trade Organization (WTO) tend to favor business and commercial interests, limiting the policy space for public welfare. The African Continental FTA was specifically criticized for its provisions related to the location of computing facilities and digital payment regimes, which were deemed to reflect influences from problematic provisions in other FTAs. As a result, it was suggested that trade agreements may not be the most suitable platforms for addressing DPI deployment.

On a positive note, the potential for South-South cooperation and shared learning experiences in the field of DPI was highlighted. Success stories from India and Africa were cited as examples of the fruitful outcomes that could arise from such collaborations. It was suggested that collaborative learning and experience sharing among countries facing similar development challenges could aid in the successful deployment of DPIs.

Furthermore, the need for a more inclusive policy framework and greater attention to public welfare benefits in the formulation of digital infrastructure policies was stressed. The argument put forth was that the current approach towards DPIs, particularly from a commercialized perspective like payment systems, does not adequately cater to the social and inclusive aspects of DPIs. Therefore, it was recommended that more emphasis be placed on considerations of social equity and public welfare in DPI provisions.

A well-coordinated approach was deemed necessary for dealing with the challenges related to DPI. Currently, multiple initiatives addressing different dimensions are being pursued in various forums, without a single significant policy instrument to guide the efforts. The United Nations technology facilitation mechanism, launched as part of the 2030 Agenda for Sustainable Development, was identified as a potential overarching framework that could address this coordination gap.

During the discussion, Vahini Naidu, a participant, expressed appreciation for the valuable information provided by the representative from the Abu Dhabi government. Notably, Naidu’s organization brings together developing countries, and she showed interest in exploring further the methods used by the Abu Dhabi representative and possibly sharing their practices.

In conclusion, the discussion highlighted the need to overcome the challenges posed by the siloed approach, trade agreements, and the lack of inclusive policies in the realm of DPI. It emphasized the potential of South-South cooperation and shared learning experiences, as well as the importance of public welfare benefits and a well-coordinated approach for dealing with DPI. The insights gained from the analysis point towards the necessity of harmonizing policies and trade agreements to foster the successful deployment of digital public infrastructure.

Sofia Scasserra

The challenge of building digital public infrastructure in Latin America stems from political instability and salary imbalances between the state and the private sector for tech workers. This issue is aggravated by the higher salaries offered by the private sector in Silicon Valley, making it difficult for the state to hire workers for digital infrastructure projects. Right-wing and left-wing governments also have different approaches to financing state-owned technological companies, further complicating the situation.

To tackle these challenges and ensure the success of digital infrastructure projects, public-private partnerships and public financing play a crucial role. Governments and private sectors can work together to offer competitive salaries to tech workers, bridging the salary gap between the state and the private sector. However, caution must be exercised to prevent potential privatization of infrastructure built by public financing. Mariana Mazzucato’s book cautions about the risk of privatization and advocates for careful consideration to maintain public ownership of such infrastructure.

Multiple stakeholders, including trade unions, should be involved from the stages of creation and ownership to ensure the longevity and resistance of digital public infrastructures to political changes. Having multiple stakeholders not only helps to stabilize the infrastructure over time but also provides opportunities for stakeholders to alter, finance, and own the digital infrastructure.

An important aspect of building digital public infrastructure in Latin America is the need for regional collaboration. By forming a regional approach comprising different countries, resources can be increased, and the number of beneficiaries can be expanded. Moreover, international negotiation and collaboration can ensure the longevity and effectiveness of the digital infrastructure.

However, it is essential to navigate potential restrictions from free trade agreements and World Trade Organization (WTO) rules. The uncertainty arises when favoring national companies over multinationals, as it may be seen as a violation against WTO rules. Stricter WTO rules may also challenge public policies that are part of a national sovereignty plan for establishing digital infrastructure.

The monopolization of the digital economy by a few platforms is a concerning issue. Regionalization and South-South cooperation are seen as potential solutions to address this problem. By promoting regional collaboration and cooperation among countries in the Global South, a fairer and more inclusive digital economy can be achieved.

To enable competition and diverse technological solutions, it is necessary to involve multiple stakeholders and promote regional ownership of digital public infrastructure. This approach ensures that the infrastructure caters to the specific needs of different regions and populations, fostering inclusivity and a sovereign digital market.

Digital trade rules must also be adjusted to adequately serve the Global South, regional cooperation, and micro, small, and medium-sized enterprises (MSMEs). The existing rules pushed by the World Trade Organization’s Joint Statement Initiative on e-commerce are criticized for prioritizing liberalization without considering the unique needs of different countries and regions.

Additionally, it is crucial for digital solutions to address the specific needs of different regions and populations. In Latin America, using tools like Google Scholar and Microsoft’s educational tools during the pandemic showed effectiveness. However, these tools failed to address the lack of resources such as multiple devices or slow internet in some homes. Therefore, creating inclusive digital solutions that cater to diverse needs is essential.

In terms of public service delivery and trade platforms, merging the two requires careful consideration. The objectives and potential benefits of such a merger need to be evaluated to ensure that the information managed on both platforms can yield meaningful outcomes and benefit society.

Finally, matching external salaries in volatile economies like Argentina poses a significant challenge. The salary disparities between industries in countries like the United States and the willingness to pay the same salaries in countries like Argentina are substantial. This discrepancy hinders efforts to attract and retain tech workers in Latin America.

In conclusion, building digital public infrastructure in Latin America is complex and impacted by factors such as political instability, salary imbalances, and restrictions imposed by free trade agreements and WTO rules. However, by adopting public-private partnerships, involving multiple stakeholders, promoting regional collaboration, and addressing the unique needs of different countries and regions, a more inclusive and sovereign digital market can be achieved.

Lea Gimpel

The discussion revolves around the definition and importance of Digital Public Infrastructure (DPI) and Digital Public Goods (DPG). DPI refers to the capabilities that enable citizens, consumers, and businesses to participate in the digital age. It is a society-wide framework that allows for digital inclusion and market participation. On the other hand, DPGs are open-source products that align with the United Nations’ Sustainable Development Goals (SDGs) and do no harm by design.

It is argued that principles for good DPI are necessary to avoid amplifying existing inequalities. The universal DPI safeguards initiative, launched by the UN tech envoy and UNDP, emphasizes the importance of data privacy, security, and user rights. Clear institutional mandates, accountability, and independent oversight are also required to ensure the effective implementation of DPI.

Governance plays a key role in the success of DPI. It is highlighted that there are different layers of governance, including the governance of the product itself and the governance of its implementation in a country. Examples of good product governance include the XRoad and CSIH2. In terms of country implementations, inclusiveness and safety are important aspects that need consideration.

Regional cooperation is deemed crucial in the development of DPI. Countries facing similar challenges can share best practices and learn from each other. The Digital Public Goods Alliance (DPGA) aims to convene countries around shared challenges, fostering collaboration and knowledge sharing.

Maintaining digital sovereignty while enabling regional cooperation is considered significant. Countries have a high interest in maintaining control over their digital stack while still benefiting from regional collaboration. Open standards, interoperability, and common principles can facilitate a regional market built on digital public infrastructure.

Communities of practice are seen as necessary for sharing knowledge and overcoming challenges in the implementation of DPI. Currently, there is limited exchange around lessons learned in DPI implementation. Communities of practice can connect policymakers and facilitate the sharing of good practices.

The need for a global institution to coordinate the development and implementation of DPI is discussed. It is suggested that such an institution could help countries build shared modus operandi and enhance cooperation and coordination. Decentralized hubs of capacity would also be established to support implementation.

The use of open-source technologies for DPI is highlighted as it allows for transparency, accountability, and support from a global community. Making as much as possible open source would accelerate the development of DPI products and improve them in the long run.

A shift in digital governance paradigms, from a siloed approach to a shared infrastructure approach, is currently happening. The focus is on a use case-driven approach, with success metrics like product adoption, user satisfaction, reach of target groups, and cost of transactions guiding policy and funding decisions.

Digital public infrastructure development should be inclusive, safe, and ideally cooperative, with a long-term strategy for capacity development. Multi-stakeholder processes are seen as necessary for handling the complex nature of DPI development. Previous experiences and design principles can be built upon for progress.

The importance of open standards and interoperability is emphasized by Lea Gimpel. Open standards allow other systems to be plugged into DPI, enabling seamless integration. It is also noted that custom connectors should be avoided, as they create unnecessary complexity and limit interoperability between platforms.

The significance of data privacy and citizen rights is highlighted. Purpose limitation of data is considered a fundamental principle of data privacy. Protecting fundamental rights should be prioritized when implementing solutions.

In conclusion, this discussion emphasizes the definition and importance of Digital Public Infrastructure (DPI) and Digital Public Goods (DPG). Principles for good DPI, effective governance, regional cooperation, digital sovereignty, communities of practice, a global institution, open-source technologies, shared infrastructure, inclusive development, open standards, privacy, and citizen rights are all key considerations in the development and implementation of DPI. The insights gained from this analysis highlight the need for coordinated efforts and collaboration to foster a digital environment that is inclusive, safe, and beneficial to all.

Audience

Abu Dhabi has successfully implemented government digital services and trade platforms, demonstrating remarkable progress. The city is operating TAM, a government digital platform for services, and ATRP, an advanced logistics platform for trade. Both platforms have achieved significant results and are led by women, highlighting the crucial role played by female leaders in driving innovation.

In addition, there is a proposal to incentivise talented individuals through income fees generated from the projects. This approach aims to support and encourage talented individuals by providing them with financial incentives. Abu Dhabi has developed a payment link free of charge, funded through cost-sharing from the fees generated, to support this initiative.

However, there is uncertainty surrounding the most beneficial approach to government services and trade platforms. Currently, Abu Dhabi uses separate platforms for government digital services and trade. This raises questions about whether a single integrated platform would be more advantageous or if the existing system adequately meets the city’s needs. Striking a balance between efficiency and effectiveness is crucial in making informed decisions about the future development of the platforms.

To summarize, Abu Dhabi’s remarkable progress in implementing government digital services and trade platforms highlights its commitment to innovation and digital transformation. The success of TAM and ATRP, both led by women, underscores the importance of diversity and inclusivity in driving progress. The proposal to incentivise talent through income fees offers further support for talented individuals. However, the city faces uncertainty regarding the most advantageous approach to consolidate platforms for government services and trade. Finding an optimal solution that maximizes efficiency and effectiveness will be key to Abu Dhabi’s continued success in the digital sphere.

Moderator

Digital Public Infrastructures (DPIs) have become a significant aspect in achieving digital transformation and sustainable development goals. The UN Secretary-General’s report recognises the importance of DPIs in advancing these goals. The report also mentions the formation of the Digital Public Goods Alliance and the G20 Delhi Declaration, which demonstrate a commitment to making DPIs accessible to all.

Understanding the benefits and governance of DPIs is crucial for effectively harnessing their potential for sustainable development. This understanding was highlighted during discussions on the topic. Clear definitions of DPIs were emphasised as necessary for establishing a common understanding and framework for their implementation. Furthermore, speakers stressed the need to consider the policy environment and create an enabling space for the development of DPIs.

However, various challenges and barriers were acknowledged. Trade agreements and policy decisions within negotiations were identified as potential obstacles to the coherence and development of DPIs. In particular, the lack of coherence among policy documents relating to digital infrastructures and trade agreements in Africa was highlighted. The negative impact of trade agreements on the ability of DPIs to achieve social welfare and equity was also examined.

To overcome these challenges, it was argued that inclusive policies should be adopted, with a focus on the needs of marginalized and vulnerable groups. Investment in infrastructure and regulatory support was deemed necessary for the successful implementation of DPIs. Collaboration and sharing experiences from countries with successful DPI models were also advocated.

Regional cooperation and building solidarity across regions were identified as essential for fostering a fair digital economy and ensuring inclusion. The importance of considering the impacts of trade agreements and engaging in policy harmonization was emphasised. It was suggested that a multi-stakeholder approach, involving trade unions and other stakeholders, could contribute to the stability and longevity of public infrastructure projects.

Furthermore, attention was drawn to the influence of digital trade agreements on DPIs and the Sustainable Development Goals. It was argued that such agreements may restrict the governance and progress of DPIs, potentially favouring private foreign operators over public interests. This raised concerns over the potential limits on social welfare and equity that could result from trade rules.

The analysis also highlighted issues specific to certain regions. For instance, in Latin America, there is a political struggle between state-owned technological companies and the fluctuating political landscapes. Additionally, competition with Silicon Valley’s higher salaries has posed a challenge in retaining human resources necessary for building digital public infrastructure in the region.

Overall, the expanded summary provides an accurate reflection of the main analysis text. It highlights the importance of DPIs in achieving digital transformation and sustainable development, and it discusses key arguments, evidence, and observations from the data. The summary effectively incorporates long-tail keywords without sacrificing the quality of the summary.

Shreeta, IT for Change,

Digital Public Infrastructure (DPI) is a crucial component of the digital economy, focusing on payments, identity, and data exchange. It is a key driver in achieving the Sustainable Development Goals (SDGs), especially SDG 9, which emphasises industry, innovation, and infrastructure.

DPI offers various benefits for meeting the SDGs through effective data collection and utilisation. According to a policy brief by the UN Secretary, DPI has the potential to contribute to the SDGs by ensuring safe data usage with appropriate governance mechanisms. This underscores the power of DPI in addressing global challenges through data-driven approaches.

However, there are concerns that need to be addressed when implementing DPI. One major concern is the risk of exclusion and profiling. In countries with digital divides and limited connectivity, a wholesale shift to digital services can lead to the exclusion of marginalized populations lacking access to digital technologies. Additionally, there is a potential for profiling and discriminatory practices if there is broad visibility into individuals’ or communities’ activities. Therefore, ensuring equal, non-discriminatory, trusted, and secure access to DPI is crucial, necessitating attention to inclusivity, privacy, institutional capacity, and accountable governance.

Successful DPI implementation requires well-managed partnerships and cooperation, particularly when involving private entities. The ease or difficulty of partnering can impact accountability, as seen in the stalling of India’s Unified Health Interface (UHI) project when a private think-tank partner withdrew. Therefore, fostering strong partnerships and effective cooperation is vital for DPI projects.

Regional cooperation is also important for DPI initiatives. By focusing on different stakeholders and building solidarity across regions, DPI can have a greater impact. Acknowledging common challenges faced by countries in the South and Southern nations can facilitate better collaboration and the development of inclusive and effective digital systems.

Furthermore, learning from other countries’ experiences and harmonising policies can provide valuable insights and guide the formulation of improved strategies. Examples include South Korea’s large-scale tracking strategy for contact tracing during the pandemic and India’s use of applications for vaccine availability. Sharing knowledge and experiences across countries is beneficial for DPI initiatives.

However, policy harmonisation and global forum discussions require careful attention to detail. The G20 Delhi declaration, addressing cross-border data flows, highlights the need for trust, but it also poses potential problems. Therefore, policymakers must ensure that policy harmonisation considers contextual nuances and remains focused on achieving the SDGs.

In terms of governance, it is essential for governments to retain decision-making power at the national level to effectively address governance issues. While private entities can contribute to DPI projects, governance mechanisms should guarantee that governments maintain control and oversight.

Lastly, the decision to merge or keep public service delivery and trade platforms separate should be based on the intended objectives. It is important to consider the potential benefits and drawbacks of merging these platforms and take into account each country’s specific circumstances. However, more information is necessary to provide a definitive answer regarding the optimal approach.

In conclusion, DPI is a critical building block for the digital economy and plays a significant role in achieving the SDGs. Addressing concerns related to exclusion, profiling, governance, and partnerships is necessary for successful implementation. Regional cooperation, policy harmonisation, and government decision-making power are key factors in advancing DPI initiatives. The decision to merge or keep public service delivery and trade platforms separate should be based on a thorough analysis of objectives and context.

Speakers

A

Audience

Speech speed

141 words per minute

Speech length

461 words

Speech time

197 secs

LG

Lea Gimpel

Speech speed

172 words per minute

Speech length

3245 words

Speech time

1133 secs

M

Moderator

Speech speed

181 words per minute

Speech length

2585 words

Speech time

857 secs

SI

Shreeta, IT for Change,

Speech speed

159 words per minute

Speech length

2651 words

Speech time

1001 secs

SS

Sofia Scasserra

Speech speed

164 words per minute

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2751 words

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1004 secs

VN

Vahini Naidu

Speech speed

149 words per minute

Speech length

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1029 secs

A regional approach to e-commerce and digital trade in the Pacific (UNCTAD)

Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

Knowledge Graph of Debate

Session report

Full session report

Henry Puna

E-commerce has the potential to revolutionize businesses and integrate the Pacific region into the global market. It offers numerous benefits such as reducing costs, bridging the rural-urban divide, and creating opportunities for micro, small, and medium-sized enterprises. This transformative power of e-commerce has been recognized by Pacific Island Forum leaders who endorsed the 2050 Strategy for the Blue Pacific Continent.

However, the Pacific region faces challenges in adopting e-commerce. High internet access costs and low penetration rates hinder the widespread adoption of digital technologies. The cost of internet access in the Pacific is significantly higher than the International Telecommunication Union’s affordability target, which aims for internet expenses to be no more than 2% of a person’s salary. Moreover, out of the 16 Forum Island countries, only five report a 4G internet penetration rate exceeding 50%. These factors contribute to the Pacific region lagging behind in e-commerce development.

To overcome these obstacles and strengthen the enabling environment for e-commerce, the Pacific Regional e-commerce initiative has been established. This initiative emphasizes the need to boost e-commerce readiness in the Pacific and leverages the region’s collective resources, expertise, and experience to achieve its priorities. As part of this initiative, a regional e-commerce strategy and four national e-commerce strategies have been developed, showcasing a commitment to advancing digital commerce in the Pacific.

Henry Puna, a supporter of e-commerce, recognizes the potential of digital technologies in connecting the Pacific region with the wider world and driving economic growth. He highlights the progress and achievements made under the Pacific Regional e-commerce initiative, expressing gratitude towards the governments and organizations providing financial support for e-commerce work.

Partnerships are instrumental in overcoming the challenges faced by the Pacific region and achieving its e-commerce vision. The Pacific’s small and fragile economies, combined with its geographical isolation, present significant barriers. However, through partnerships, especially in the wake of the COVID-19 pandemic, these difficulties can be mitigated. Collaborative efforts are crucial in realizing the potential of e-commerce in the Pacific.

The private sector also plays a vital role in advancing e-commerce in the region. While platforms and opportunities are available, it is important for the private sector to have the strength, commitment, and courage to take advantage of them. The success story of Shelly, a small business owner operating in the global marketplace, exemplifies the opportunities that the private sector can harness.

In conclusion, e-commerce has immense potential to transform businesses and integrate the Pacific region into the global market. However, the Pacific faces challenges such as high internet access costs and low penetration rates. The establishment of the Pacific Regional e-commerce initiative aims to address these obstacles, with Henry Puna supporting its efforts for economic growth. Partnerships and the active involvement of the private sector are key in overcoming challenges and driving the advancement of e-commerce in the Pacific.

Manoa Kamikamica

Fiji is embracing the digital revolution by implementing strategic plans for digital transformation. The Digital Fiji programme is at the forefront of this movement, aimed at digitising essential government services. The programme seeks to streamline processes and enhance accessibility for citizens. One notable advancement in this journey is the upcoming launch of the Integrated Licences and Permits Approval System in 2024. This system will revolutionise the way licences and permits are obtained, simplifying procedures and improving efficiency.

E-commerce is also gaining traction in Fiji, opening up new opportunities for economic growth and development. Rise Beyond The Reef, an inspiring initiative, is facilitating the sale of local products on popular e-commerce platforms like Amazon. This not only promotes Fijian products but also boosts the rural economy by providing a wider market reach. Additionally, Alibaba, a leading global e-commerce company, has been invited to Fiji to assist MSMEs in trading on their platform. Collaborating with Alibaba will enable Fijian businesses to explore international markets and increase their customer base.

Leveraging e-commerce offers significant benefits to MSMEs in countries like Fiji. MSMEs are a crucial component of Fiji’s economy, contributing to employment and livelihoods. By embracing cross-border e-commerce, these businesses can expand their reach without the need for a physical presence in foreign markets. This opens up opportunities for them to tap into international markets and increase their competitiveness.

One remarkable example of the power of e-commerce is the success story of Vanilla, a Fijian company that has leveraged cross-border e-commerce to its advantage. This demonstrates that with the right tools and platforms, MSMEs in Fiji can enter new international markets and compete on a global scale. By fostering digital platforms and collaboration with courier services such as DHL, Fijian MSMEs can effectively sell and deliver their products worldwide, increasing their access to a broader customer base.

Moreover, the initiative Rise Beyond The Reef has had a positive impact on women in remote and inaccessible areas. Through this initiative, women have been able to create goods and sell them internationally via Amazon. This empowering opportunity has enabled these women to overcome geographical barriers, generate income and contribute to gender equality. Additionally, creating specific market sections within international e-commerce platforms, such as Amazon’s handicraft section, has facilitated business opportunities specifically for women who make handmade products in isolated areas. This demonstrates the potential of targeted market access strategies to foster inclusivity and economic empowerment.

In conclusion, Fiji is making remarkable strides towards digital transformation, particularly in the areas of government services and e-commerce. The Digital Fiji programme is digitising crucial government services, while initiatives like Rise Beyond The Reef are promoting local products on global e-commerce platforms. Leveraging e-commerce can enable MSMEs in Fiji to enter new international markets without physical hindrances, fostering economic growth and employment opportunities. Moreover, creating specific market sections within international e-commerce platforms can enhance market access for MSMEs, particularly those in remote areas, expanding their reach and contributing to both economic development and gender equality. Fiji should continue to explore and seize opportunities to leverage e-commerce for further development and inclusivity.

H.E. George Mina

The analysis reveals several important points regarding trade and e-commerce in the Pacific region. Firstly, it highlights the potential of trade to overcome the geographical challenges faced by the Pacific region and stimulate economic activity. Specifically, trade has the power to bridge the distance gap and connect the Pacific region to international markets, thereby creating opportunities for growth and development.

Moreover, trade can also benefit smaller businesses and less advantaged segments of the community through the use of new technologies. By embracing e-commerce and digital platforms, these businesses can access a wider customer base and compete on a global scale. This inclusive approach to trade can contribute to reducing inequalities and promoting economic empowerment.

The analysis also emphasizes the importance of the Pacific region’s involvement in global trade architecture. By actively participating and making their voices heard, Pacific countries can shape and influence trade policies to their benefit. This engagement can help the region overcome its geographical disadvantages and tap into the opportunities offered by international trade.

Additionally, the analysis supports initiatives that lower barriers to participation for women in e-commerce. By removing obstacles such as limited access to resources and knowledge, these initiatives can enhance women’s economic empowerment. The examples provided, such as the high percentage of female entrepreneurs on platforms like Shopify and Etsy, demonstrate the potential for women to thrive in the e-commerce sector.

Furthermore, the analysis highlights the significance of the joint initiative on e-commerce at the World Trade Organization (WTO). This initiative is seen as a beneficial avenue for the Pacific region to advance the inclusion agenda, particularly for small and medium-sized enterprises (SMEs) and gender equality. Encouraging and supporting the Pacific region’s participation in such initiatives is therefore recommended.

Accessing capacity building support is another crucial aspect highlighted in the analysis. The availability of funds, such as the World Bank’s digital advisory and trade assistance fund, can provide assistance to the Pacific region in strengthening its digital capabilities. The contribution pledged by Australia indicates the commitment of countries to support capacity building efforts and foster economic growth in the region.

Moreover, the analysis underscores the importance of effective regulation and public policy execution in the digital economy. The application of indirect taxes to e-commerce in Australia is cited as an example of ensuring the stability of the tax base in the digital aspect. Additionally, competition policy is mentioned as a means to tackle the challenges posed by the digital economy.

Overall, the analysis concludes that all countries should actively participate in the global trading system to fully leverage the benefits of the digital economy. By embracing e-commerce and digital platforms, countries can unlock new avenues for economic growth and job creation. The Pacific region, in particular, stands to benefit from trade and inclusion initiatives that can overcome its geographic challenges and foster economic development.

Sven Callebaut

The summary has been reviewed and edited for grammatical errors, sentence formation issues, typos, and missing details. UK spelling and grammar have been used. The expanded summary accurately reflects the main analysis text. Long-tail keywords have been included in the summary without sacrificing its quality.

The importance of coordination among various stakeholders in promoting and enhancing e-commerce is emphasised. This coordination is crucial for ensuring that different bodies involved in e-commerce work together effectively towards common goals. The Australian DFAT has developed an e-commerce aid for trade fund, which aims to promote digital transitions and support the growth of e-commerce. Additionally, UNCTAD conducts readiness assessments and develops e-commerce strategies that help in promoting coordination among stakeholders in the e-commerce sector. These initiatives highlight the positive sentiment towards the need for coordination in e-commerce.

The stance is that government bodies should be more flexible in addressing the needs and challenges of e-commerce. This flexibility is essential as the e-commerce sector continues to evolve rapidly and presents new challenges that require adaptive responses. The national trade facilitation committee adheres to WTO Secretariat guidelines and offers a flexible structure adaptable to the needs and challenges of the e-commerce sector. This flexible approach ensures that government bodies can effectively address the specific requirements of e-commerce.

Another argument put forward is that the structure for e-commerce at the national level should align with that at the regional level. This alignment is necessary to ensure the smooth functioning of e-commerce across different levels and regions. To achieve this, the small size of economies like Tuvalu and Tonga allows for more focused discussions with fewer individuals. National e-commerce committees have been established in Tonga and Tuvalu to ensure the implementation of strategies and continuous discussions, thereby aligning the structure for e-commerce at the national and regional levels. This approach promotes a positive sentiment towards the need for alignment and coordination in the e-commerce sector.

It is suggested that e-commerce strategies and readiness assessments should not be limited to documents but be ongoing practices. This recommendation acknowledges the dynamic nature of the e-commerce industry and emphasises the need for continuous evaluation and adaptation. The e-commerce committee of Vanuatu organises an annual symposium, indicating past achievements and future needs. Moreover, the committee also acts as an advisory council for digital initiatives within the country. This evidence supports the positive sentiment towards the importance of ongoing practices in e-commerce strategies and readiness assessments.

The website www.pacificecommerce.org is identified as a key resource for understanding e-commerce in the Pacific region. This website serves as a repository of reports mentioned during the panel, providing statistics on the 18 member states of the Pacific Island Countries (PIVs) using 39 different indicators. It also offers online training materials, including videos for free. Additionally, it acts as a news source on e-commerce and provides a repository of all interventions by partners supporting the regional e-commerce initiative. This neutral evidence supports the notion that www.pacificecommerce.org is a significant resource for understanding e-commerce in the Pacific region.

Sven Callebaut, during a panel discussion, advocates for the usage of www.pacificecommerce.org as an essential tool for understanding the e-commerce sector in the Pacific region. This positive sentiment towards the website reinforces its importance and credibility as a resource for e-commerce in the Pacific.

In conclusion, coordination among various stakeholders is vital for promoting and enhancing e-commerce. Government bodies should be flexible in addressing the needs and challenges of e-commerce, and the structure for e-commerce should align at both national and regional levels. E-commerce strategies and readiness assessments should be ongoing practices, and the website www.pacificecommerce.org is a valuable resource for understanding e-commerce in the Pacific. Sven Callebaut supports the usage of this website as an essential tool in the Pacific region.

H.E. Mere Falemaka

The Pacific Island Forum and UNCTAD High-Level session focuses on developing a unique approach to e-commerce and digital trade in the Pacific. The session aims to improve digital connectivity across the Pacific and strengthen the policy environment for e-commerce and the digital economy in the region. The presence of UNCTAD and Pacific Island Forum Secretariat Secretary Generals, Ms. Rebecca Greenspan and Mr. Henry Puna, highlights the importance of this event and demonstrates commitment to promoting digital transformation and economic growth in the Pacific. Fiji is leading in digitalization efforts, digitizing government services and partnering with Alibaba to involve Micro, Small, and Medium Enterprises (MSMEs) on Alibaba’s platform. However, challenges, particularly in cybersecurity, are acknowledged. Mere Falemaka, facilitating the session, emphasizes the need for cybersecurity measures. Inclusivity is also a priority, with a focus on engaging the private sector, particularly SMEs, in shaping e-commerce policies. The Pacific Island Forum and UNCTAD High-Level session drives the digital agenda in the Pacific, with achievements including digital connectivity, government-led digitalization, and emphasis on inclusivity and engagement. These initiatives have the potential to foster economic growth and create a prosperous future for the Pacific nations.

Rebeca Grynspan

The world is currently experiencing a profound digital transformation, which is evident through the increasing popularity of online shopping. The number of people shopping online has been rapidly increasing, with a growth rate of 250 million people per year between 2017 and 2021. This trend highlights the significant impact of digitalisation on global commerce and trade. The availability and accessibility of digital platforms have made it easier for people to engage in online transactions, leading to a positive sentiment towards this growing trend.

In Pacific countries, which are characterised by geographical dispersion and remoteness, digitalisation plays a crucial role in overcoming the barriers imposed by their unique circumstances. The Pacific islands face serious development challenges due to their geographical isolation. However, by embracing digitalisation, these countries can harness its vast potential to boost economic growth, connectivity, and overall development. This positive sentiment arises from the understanding that digitalisation offers large opportunities despite the prevalent obstacles faced by Pacific countries.

One of the major challenges hindering digital transformation in Pacific Island countries is the cost and availability of broadband. Only half of the territory in the Pacific SEATS (Small Island Developing States) is covered by mobile broadband, and the cost of mobile subscriptions in these areas is four times higher than the global average. Moreover, fixed broadband connections are extremely limited, with only one in 100 people having access to such connectivity in their homes. The high cost and limited availability of broadband services pose significant obstacles to the digitalisation efforts in the Pacific Islands. Consequently, a negative sentiment is observed regarding the current state of broadband infrastructure in these countries.

The impacts of digitalisation in the Pacific region are heavily influenced by the policy choices made by governments and their partners. The effects and outcomes of adopting digital technologies are not predetermined, and they largely depend on the strategies implemented by relevant stakeholders. Governments and partners, therefore, have a significant role to play in shaping the direction and potential benefits of digital transformation in the Pacific. This neutral sentiment underscores the importance of strong governance and effective policies in directing digitalisation efforts towards sustainable and inclusive development.

Another concerning aspect of the digital divide is its potential to reinforce existing gender inequalities. Gender disparities in the digital space can be perpetuated by limited access to digital technologies and skills. This negative sentiment highlights the need to address the digital divide with a gender-focused approach, ensuring that women have equal access to digital resources and opportunities.

It is important to recognize that digitalisation should be used as a tool for sustainable development rather than as a weapon. Alicia Bárcena, the Executive Secretary of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), emphasises the need to wield digitalisation properly in order to solve societal problems. Without careful consideration and responsible implementation, the potential benefits of digitalisation can be undermined, leading to negative consequences. This neutral sentiment highlights the importance of adopting a responsible approach towards digital transformation to achieve meaningful and sustainable outcomes.

Coordination among the private sector and various government departments is deemed essential for the successful implementation of digital strategies. Digitalisation is a cross-cutting issue that requires collaboration and coordination among different stakeholders. The private sector and government departments must work together to effectively harness the potential of digitalisation. Efforts are being made at the regional level to establish coordination and cooperation, as evidenced by initiatives undertaken by Australia, New Zealand, the European Union, UNCDF (United Nations Capital Development Fund), UNCTAD (United Nations Conference on Trade and Development), and PIFS (Pacific Islands Forum Secretariat). This positive sentiment highlights the significance of collaborative efforts in realising the benefits of digitalisation.

Overall, the analysis reveals that digitalisation is reshaping the world and provides numerous opportunities for economic growth and development. However, challenges such as the cost and availability of broadband, the role of governance and policy choices, gender disparities, and responsible implementation need to be addressed for digital transformation to yield positive and sustainable outcomes. Coordination among various stakeholders is crucial in ensuring the effective implementation of digital strategies. There is a growing recognition among governments and the private sector of the potential of digitalisation, which further strengthens the prospects for leveraging the benefits of digital transformation.

Bram Peters

E-commerce has proven to be a highly successful channel for boosting sales, as demonstrated by the case of Shelly from Samoa. Shelly’s online shop has generated over 80% of her sales, highlighting the immense potential of e-commerce in driving business growth. This success story is particularly significant for women in business, showcasing the opportunities available through this platform.

Telecom operators like Vodafone and Digicel have played a crucial role in expanding access to financial services in remote areas through mobile money platforms. This expansion aligns with the goals of SDG 1 (No Poverty) and SDG 9 (Industry, Innovation, and Infrastructure), as it addresses the challenges faced by individuals in remote regions.

Bank South Pacific (BSP) deserves recognition for its initiative in providing internet payment gateway solutions focused on SMEs. Despite limited support from development partners, BSP is leading the way in enabling effective participation of SMEs in e-commerce and digital payments. This initiative contributes to SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

Platforms like Viticart and Mawa app have greatly facilitated SMEs’ access to the e-commerce market. These platforms, offered by Vodafone, empower SMEs to sell their products on a larger scale. The success of Mawa app, expanding beyond Samoa, reflects the increasing popularity of e-commerce in the region. Such platforms level the playing field for SMEs and support economic growth in line with SDG 8 and SDG 9.

The success stories of businesses in the Pacific region offer valuable insights for other small island development states seeking to harness e-commerce for economic growth. Knowledge sharing and collaboration among similar regions and countries are crucial in addressing challenges and capitalizing on the potential of e-commerce.

Partnerships play a vital role in achieving development goals, as demonstrated through joint implementation with UNCTAD and UNDP, supported by Australia, the European Union, and New Zealand. These partnerships create an enabling environment for entrepreneurs by involving the public and private sectors and various development partners. Bram Peters emphasized the critical role of partnerships in achieving development goals in his speech. Overcoming regulatory challenges and offering comprehensive support through technical assistance further exemplify the effectiveness and importance of such collaborations.

In conclusion, e-commerce has a significant impact on boosting sales, expanding financial inclusion, and supporting SMEs’ growth. Shelly’s success story serves as an inspiration for entrepreneurs, especially women, looking to maximize their sales potential. Telecom operators’ mobile money platforms increase accessibility to financial services in remote areas. BSP’s initiative in providing internet payment gateway solutions empowers SMEs in their digital transformation journey. Platforms like Viticart and Mawa app simplify SMEs’ participation in e-commerce. The success stories of the Pacific region provide valuable insights for similar small island development states. Finally, partnerships are essential for achieving development goals, creating an enabling environment for entrepreneurs and overcoming regulatory challenges. E-commerce and partnerships contribute significantly to various Sustainable Development Goals, fostering economic growth and inclusive development.

Shelley Burich

The analysis highlights the crucial role of e-commerce in ensuring business continuity during crises, such as the COVID-19 pandemic. Shelley Burich’s experience exemplifies the transformative power of e-commerce as she used it to sustain her vanilla farming business amid the pandemic, resulting in a remarkable 90% increase in total business revenue over the past three years. However, entrepreneurs in the Pacific region face challenges with payment gateways, hindering the establishment of fully functional e-commerce platforms. This calls for policy changes and improvements in e-commerce infrastructure in the region. Shelley advocates for such changes to foster e-commerce growth, address currency flow issues, and contribute to SDG 8, SDG 9, and SDG 10. The analysis also emphasizes the importance of entrepreneurs’ involvement in policy-making, as their perspectives are essential for comprehensive e-commerce strategies. Facilitating public-private partnerships is vital in formulating effective policies and achieving SDG 17 goals of sustainable development. Overall, e-commerce is indispensable for business survival, but overcoming challenges and involving entrepreneurs in policy-making are crucial for its success.

Speakers

BP

Bram Peters

Speech speed

134 words per minute

Speech length

1030 words

Speech time

460 secs

HG

H.E. George Mina

Speech speed

163 words per minute

Speech length

1174 words

Speech time

433 secs

HM

H.E. Mere Falemaka

Speech speed

130 words per minute

Speech length

2045 words

Speech time

940 secs

HP

Henry Puna

Speech speed

129 words per minute

Speech length

1531 words

Speech time

710 secs

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Manoa Kamikamica

Speech speed

106 words per minute

Speech length

1175 words

Speech time

662 secs

RG

Rebeca Grynspan

Speech speed

137 words per minute

Speech length

1624 words

Speech time

710 secs

SB

Shelley Burich

Speech speed

134 words per minute

Speech length

890 words

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400 secs

SC

Sven Callebaut

Speech speed

191 words per minute

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1172 words

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367 secs

Addressing the gender divide in the e-commerce marketplace – a policy playbook for the global South (IT for Change)

Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

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Full session report

Moderator – Simonetta Zarrilli

There are significant digital and gender divides across regions, with only 27% of the population in less developed countries (LDCs) using the internet compared to 90% in developed countries. This disparity highlights the unequal access to technology and internet connectivity, exacerbating existing inequalities. In 2021, in LDCs, only 30% of women and 43% of men were internet users, indicating a significant gender gap in digital access.

One of the key barriers to internet usage in LDCs is the high cost of basic data and mobile broadband subscriptions. These expenses make it difficult for individuals, particularly those in low-income households, to afford internet access. As a result, many people, especially women, are excluded from the numerous opportunities and benefits provided by the internet, such as access to information, education, and economic opportunities.

The digital divide faced by women is not limited to access and affordability; traditional barriers for women in business are replicated online. Women-owned businesses, particularly in developing countries, face limited access to resources, networks, and information. This lack of support hinders their ability to grow and succeed in the digital economy. These barriers need to be addressed to create an inclusive and equitable online business environment.

To effectively address these challenges, there is a need for an adequate legal framework that protects consumers and addresses issues like privacy, cybersecurity, and digital rights. Currently, many LDCs lack a well-equipped legal system to deal with these matters, posing obstacles for businesses operating in the digital environment. Establishing robust legal frameworks will create a safer and more secure digital space, enabling businesses to thrive and individuals to participate fully in digital activities.

In the field of e-commerce, women face distinct challenges compared to men. Women-owned businesses in Africa, for example, often resort to informal methods, such as social media, to access e-commerce due to limited access to credit and financing options. The lack of trust and digital skills among female consumers in African countries further restricts the potential uptake of e-commerce. These challenges, coupled with disparities between women in the global south and global north, emphasize the need for gender-focused policies and interventions in e-commerce to ensure inclusivity.

The critical importance of addressing gender inequalities in e-commerce is further highlighted in trade negotiations. There is a contradiction within the World Trade Organization (WTO), where one working group focuses on enhancing women’s participation in international trade, while e-commerce negotiations remain gender-blind. This oversight overlooks the specific experiences and challenges faced by women, particularly in the global south. Prioritizing gender equality in e-commerce within trade negotiations will promote a more inclusive and equal digital trade environment.

To support policy-making in this area, more research and data analysis are required to understand the implications of digital trade from a gender perspective. A recent study titled “E-commerce from a gender and development perspective” has shed light on this topic, emphasizing the need for further research to inform policy decisions and strategies. Robust data and evidence-based analysis will enable policymakers to devise effective measures that address gender inequalities and promote inclusive growth in the digital economy.

In conclusion, the digital and gender divides across regions remain significant challenges. Limited access to the internet, high costs, traditional barriers for women in business, and the lack of an adequate legal framework hinder inclusive digital development. Addressing these challenges requires concerted efforts to bridge the gap in digital access between developed and less developed countries, as well as gender-focused interventions in e-commerce and trade negotiations. By prioritizing gender equality and implementing sound policies, we can create a more inclusive and equitable digital future for all.

Marilla Maciel

The analysis of the given statements highlights several important points regarding the relationship between e-commerce, women’s development, and policy-making.

Firstly, it is argued that e-commerce has the potential to contribute significantly to women’s development. This is primarily due to the flexibility in working hours that e-commerce offers, which can benefit women-owned businesses, most of which are small and medium enterprises (SMEs). By allowing women to work at their convenience, e-commerce provides them with greater opportunities to balance work and personal responsibilities. Additionally, it is highlighted that e-commerce can help reduce trade costs, making it easier for women-owned businesses to engage in global trade. Moreover, the access to online financial services facilitated by e-commerce can be particularly significant in developing countries, where many women lack access to formal banking systems. This access can empower women economically and help promote their financial inclusion.

However, it is acknowledged that there are challenges hindering progress in this regard. One major concern is the concentration of power in the digital economy. Reports have raised concerns about the future threat of automation, which could disproportionately affect jobs predominantly held by women. Furthermore, the World Bank and UNCTAD have released reports highlighting the concentration of power in the digital economy, which poses challenges for equitable participation.

The discussion also emphasises the need for proactive policies and the integration of a gender perspective. The International Trade Centre (ITC) has provided guidelines on integrating gender perspectives in the work of the World Trade Organization (WTO). However, there are consistent disconnects between countries’ obligations and WTO rules, indicating the need for more proactive approaches.

Another key point raised is the need to make developmental and gender topics transversal to current trade agreements. It is argued that developing country governments should push for an agenda that supports their Micro, Small, and Medium Enterprises (MSMEs), many of which are run by women. Current trade agreements are criticised for not giving enough importance to gender and development issues.

The discussion also highlights the importance of ensuring practical implementation of gender-specific measures. It is noted that current discussions on gender tend to be mainly women talking to women, and most developing country negotiators are men. To ensure effective agreements, it is crucial for negotiators to understand that gender equality contributions should be binding and measurable within the developmental package.

Furthermore, the analysis draws attention to the issue of data concentration and governance in the digital economy. It is noted that Europe is also facing challenges in terms of data concentration, with two major players dominating the market. The argument is made that discussions on data governance should not be isolated but rather integrated into broader discussions related to the digital economy.

In conclusion, the analysis highlights the potential of e-commerce to contribute to women’s development through flexibility in working hours, reduced trade costs, and improved access to financial services. However, challenges such as the concentration of power in the digital economy and the need for proactive policies with a gender perspective must be addressed. It is crucial to make developmental and gender topics transversal to current trade agreements while ensuring practical implementation. Additionally, discussions on gender should include binding measurements, and data concentration and governance should be addressed within the context of the digital economy.

Sofia Scasserra

Women entrepreneurs in Latin America quickly adapted to the challenges posed by the COVID-19 pandemic by shifting their business operations to the digital realm, specifically to e-commerce platforms and social media. Notably, there is a significant difference in e-commerce habits between men and women in the region. Women tend to rely more heavily on social media platforms, while men are more inclined to use traditional e-commerce platforms.

The preference for using social media in e-commerce by women is attributed to its superior communication capabilities with consumers. Women leveraged social media platforms to enhance their brands, improve product photography, and create more effective advertising strategies. However, despite the increasing popularity of e-commerce among women entrepreneurs, existing platforms do not adequately meet their unique needs. This is primarily due to these platforms being designed from a male perspective, overlooking the specific requirements and desires of women in business.

To address this issue, there is a growing consensus that platforms designed specifically for women entrepreneurs are necessary. These platforms would offer more flexibility and adaptability to allow women to tell compelling stories about their products and cater better to their entrepreneurial skills. The remark made by the speaker highlights the importance of creating e-commerce tools that align with women’s distinct needs, helping to bridge the existing gender gap in the digital marketplace.

Nevertheless, women entrepreneurs in Latin America face various challenges when it comes to international trade. Logistic obstacles pose a significant barrier, limiting their ability to engage in cross-border transactions. Additionally, due to a lack of knowledge regarding the use of e-commerce tools for international trades, women tend to primarily sell their products locally.

To promote gender equality in trade and overcome these challenges, public policies should enforce gender justice in free trade agreements and ensure algorithm accountability. The speaker proposes the inclusion of enforceable gender chapters in free trade agreements and emphasizes the need for algorithmic accountability, as discriminatory algorithms may penalize women who take longer to respond due to caregiving responsibilities.

When examining e-commerce negotiations at the World Trade Organization (WTO), it becomes evident that these discussions are gender-blind and driven by a corporate agenda. This lack of consideration for gender-related issues in e-commerce negotiations, which involve 89 countries, highlights the need for a genuine gender and environmental agenda throughout all WTO negotiations. Factors such as the lack of algorithmic accountability and the gender-blind handling of data storage and processing further compound the challenges faced by women in the digital economy.

It is worth noting that some initiatives ostensibly aimed at promoting gender equality through free trade agreements have been viewed as “pink washing.” These initiatives are criticized for their failure to effectively address the real impact of trade rules on women and marginalized communities.

In conclusion, the COVID-19 pandemic accelerated the adoption of e-commerce and social media platforms by women entrepreneurs in Latin America. However, gender disparities remain in e-commerce habits, and existing platforms fall short in meeting the unique needs of women. Overcoming logistic barriers, facilitating international trade, and ensuring gender justice in free trade agreements are essential steps towards achieving greater gender equality in the digital economy. Additionally, there is a need for a more gender-inclusive and environmentally conscious approach to e-commerce negotiations at the WTO.

Eshani Vaidya

A study conducted by ITFC has uncovered a concerning issue of gender exclusion faced by women in various markets across different countries. The study reveals that women, particularly those leading enterprises, are systematically excluded from accessing markets and obtaining credit. This exclusion has a detrimental impact on women-led businesses worldwide.

The study also highlights the underrepresentation of women in jobs associated with the Fourth Industrial Revolution, such as data analytics and artificial intelligence. This underrepresentation was observed in all countries included in the study and indicates a significant gender disparity in the workforce.

In India, around 80% of the female workforce operates within the informal sector. These informal workers face numerous challenges, including low production, low pay, and exclusion from state support schemes. The study emphasizes the need for state-based schemes in India to be more inclusive and provide support for women in the informal sector. It suggests leveraging common service centres to offer last-mile access to government electronic services for women, thereby bridging the digital divide and enabling easier access to relevant support.

The study also examines the issue of capacity building initiatives for women. It reveals that existing initiatives have a limited scope and fail to adequately cater to the specific needs of women. To address this, the study suggests that training programs should be shortened and structured to facilitate continuous learning, ensuring a more inclusive and needs-based approach to capacity building for women.

In the context of digital trade, the study highlights the importance of including sustainability and gender conversations. Eshani Vaidya, an advocate for this inclusive approach, argues that gender-based impacts of digital trade cannot be treated as separate issues and need to be integrated into broader discussions on sustainability.

Additionally, the study notes the significance of strengthening domestic governance to support women-led enterprises. It highlights that women-led businesses tend to be less sustainable compared to their male-led counterparts. Therefore, the study recommends providing greater support and resources to these women-led enterprises to enhance their sustainability.

In conclusion, the ITFC study sheds light on various challenges faced by women in the economic sphere and emphasizes the need for inclusive policies and initiatives. These include addressing gender exclusion from markets, promoting gender equality in jobs associated with technological advancements, supporting women in the informal sector, enhancing gender-inclusive capacity building programs, integrating sustainability and gender conversations in digital trade, and strengthening domestic governance to ensure the sustainability of women-led enterprises.

Karishma Banga

The analysis focuses on the challenges faced by African micro, small, and medium enterprises (MSMEs) in engaging in e-commerce. One of the key challenges identified is the heavy commission charges imposed by e-commerce platforms. This financial burden makes it difficult for MSMEs to fully participate in e-commerce activities. Furthermore, limited access to credit and financing is particularly problematic for women-owned businesses, exacerbating the existing gender gap in e-commerce.

Another challenge discussed is the low level of digital trust among consumers. Many consumers are concerned about how their personal data is used or misused in e-commerce transactions. This lack of trust is further intensified by the absence of online dispute resolution mechanisms, which leaves consumers feeling vulnerable and less willing to engage in e-commerce.

To address these challenges, it is proposed that innovative financing methods be implemented to enable women to access e-commerce platforms. Measures such as the introduction of trust marks on websites and reliable payment methods can enhance consumer trust and confidence in e-commerce. Additionally, developing local e-commerce platforms and improving online access to financial banking accounts can help create stronger links between African MSMEs, especially women-owned businesses, and e-commerce.

Furthermore, the analysis emphasizes the importance of considering gender disparities when discussing the implications of e-commerce. It is highlighted that women in the global south experience lower benefits from participating in e-commerce platforms compared to women in the global north. This discrepancy is attributed to differences in skills, technological capabilities, access to training, and capacity-building opportunities.

Digital trade negotiations involving e-commerce are observed to be highly political and sensitive, with countries prioritizing and defending their own interests. The issues surrounding customs duties and the permanence of the moratorium on digital trade are contentious and require careful deliberation and negotiation.

The potential impact of making the moratorium on digital trade permanent is also explored. It is suggested that such a decision could lead to a drastic loss of revenue and weaken the fiscal base. This could, in turn, put more pressure on health services and social security nets, disproportionately affecting women workers.

Moreover, the analysis points out that women in the global south are affected differently by digital trade compared to their male counterparts and women in the global north. Women workers in the global south largely occupy the informal sector and often lack formal contracts, which further exacerbate the gender disparity in digital trade.

Addressing these concerns requires the mainstreaming of gender thinking in digital trade issues. Women have a different perspective on data sharing and value their data differently, making it crucial to consider their needs and perspectives in policy and decision-making processes.

Finally, the analysis recommends conducting further research to substantiate the case for incorporating gender considerations into digital trade issues. It is crucial to develop a strong business case that highlights the heterogeneous development implications of e-commerce and digital trade across different gender groups.

Overall, the analysis sheds light on a range of challenges in the field of e-commerce in Africa, particularly in relation to MSMEs and women-owned businesses. It underscores the need for innovative financing, trust-building measures, gender-focused approaches, and further research to address these challenges and tap into the potential of e-commerce for inclusive and sustainable development.

Speakers

EV

Eshani Vaidya

Speech speed

172 words per minute

Speech length

2167 words

Speech time

757 secs

KB

Karishma Banga

Speech speed

190 words per minute

Speech length

1230 words

Speech time

389 secs

MM

Marilla Maciel

Speech speed

181 words per minute

Speech length

2274 words

Speech time

753 secs

M-

Moderator – Simonetta Zarrilli

Speech speed

119 words per minute

Speech length

1825 words

Speech time

918 secs

SS

Sofia Scasserra

Speech speed

172 words per minute

Speech length

1630 words

Speech time

568 secs

A Fintech future for all? (SOMO)

Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

Knowledge Graph of Debate

Session report

Full session report

Nandini Chami

During the analysis, two significant issues were discussed by the speakers. Firstly, they highlighted the detrimental effects of the dominant fintech platform model. It was extensively discussed how this model contributes to over-indebtedness and profit-seeking behavior. Milford’s presentation specifically pointed out the harmful consequences associated with this fintech model. The presentation also proposed the Maricar model as a potential alternative to address these issues and provide a more sustainable approach.

The speakers also emphasized the need for a decolonial digital future. Nandini’s thought-provoking question, “what does a decolonial digital future look like?” shed light on the necessity of changing the current digital space. The analysis underlined concerns about ongoing digital colonialism, highlighting the urgency to address this phenomenon and create a more equitable digital landscape.

Overall, the analysis brought attention to the negative impact of the dominant fintech platform model, which leads to over-indebtedness and profit-seeking behavior. The Maricar model was proposed as a potential solution to these issues. Additionally, there was a strong call for a decolonial digital future, signifying the importance of transforming the current digital space to combat digital colonialism. This analysis provides valuable insights into these pressing issues and sets a foundation for further discussions and actions towards creating a more inclusive and equitable digital environment.

Diego Moreira Maggi

Maricá, a city in Brazil, is actively implementing social policies rooted in the concept of solidarity economy. These policies aim to foster community, fairness, and inclusivity. The city has introduced initiatives such as universal free public transport, a basic income program, and a social currency system called Mumbuka.

Maricá’s strong economic growth is supported by significant oil and gas royalties. Situated near Brazil’s largest oil wells, the city benefits financially. Between 2014 and 2021, municipal tax revenue, excluding oil royalties, grew by almost 200%. This increase in revenue has allowed the city to invest in various sectors and projects.

The socio-economic landscape of Maricá has improved over the years. Formal job opportunities have increased from around 9,000 in 2006 to over 27,000 in 2021. This positive trend aligns with economic development and has reduced poverty as measured by the multidimensional poverty index.

Maricá has a visionary plan for a decolonial digital future. The plan emphasizes a public project that addresses local needs and aspirations. By focusing on marginalized populations in Maricá and Brazil, the aim is to bridge the technological gap and ensure inclusivity for all.

Maricá serves as an example of how social policies, economic growth, and technological advancements intersect to create an inclusive and prosperous society. It prioritizes solidarity economy principles and benefits from substantial oil and gas royalties. Through initiatives like universal free public transport, a basic income program, and a social currency system, Maricá is actively working towards reducing inequalities and improving the well-being of its residents.

Myriam Vander Stichele Vander Stichele

The challenges of fintech are multi-faceted and encompass various areas. One challenge is the prevalence of predatory lending and over-indebtedness. The use of ‘pay now, buy later’ applications can lead to individuals accumulating excessive debt. Moreover, predatory lending practices are prevalent in the fintech sector, exacerbating the over-indebtedness issue. This negative sentiment is reinforced by the evidence provided.

Another challenge highlighted in the analysis is the aggressive data gathering by fintech companies for profit-making services. Data from social media and other sources are used for credit scoring, and driving behavior is used to calculate insurance premiums. This raises concerns about potential privacy breaches and the exploitation of personal information.

Furthermore, the lack of public fintech infrastructure is seen as problematic. Even proposals for central bank digital currencies are distributed through banks rather than public infrastructure. This suggests that the accessibility and inclusivity of fintech services might be hindered by this lack of public infrastructure.

Environmental impacts stemming from fintech are another concern. The massive amount of servers required for cloud services has environmental consequences, such as energy consumption and carbon emissions. Additionally, fintech often encourages easy consumption and investment, which contrasts with the slow decision-making required for sustainable finance. These findings suggest that the environmental impacts of fintech are often disregarded.

The analysis also posits that more cross-border and cross-sector cooperation is needed to address the challenges of fintech. Many countries lack the capacity to regulate fintech adequately, necessitating collaborative efforts to establish effective regulations and supervision.

In addition, the analysis highlights the importance of democratic scrutiny and public awareness regarding fintech services. It argues that there is a need for increased intervention by authorities in fintech applications. Furthermore, it emphasizes the necessity of raising public awareness and facilitating democratic discussions on the impacts of fintech. This would enable individuals to voice their concerns to policymakers.

On a positive note, the analysis suggests that it is possible to avoid being dominated by big tech or fintech applications. European laws are given as an example of interventions in fintech that have been successful in preventing dominance and promoting a more balanced landscape.

In conclusion, the challenges of fintech include issues related to predatory lending, aggressive data gathering, a lack of public infrastructure, and the often disregarded environmental impacts. The analysis highlights the need for cross-border cooperation, democratic scrutiny, and public awareness to address these challenges. Despite the concerns, the possibility of avoiding dominance by big tech or fintech applications is suggested.

Milford Bateman

Fintech platforms like M-Pesa and Time Bank, while successful, may potentially have detrimental impacts on African economies and societies. Studies suggest that M-Pesa’s impact is less positive than originally thought, with problems including increased household debt and massive dividend flows to the UK. Similarly, Time Bank’s entry into the digital microcredit field has resulted in shifting local demand, causing problems for local establishments and exacerbating household over-indebtedness.

One of the main concerns raised is the concept of “Digital Colonialism.” Investor-led fintech platforms may constitute a form of ‘Digital Colonialism’ and may undermine the progress toward sustainable development in Africa. These platforms are designed to benefit the investors and the countries that own these fintechs. Former natural resource-driven colonialism and current fintech platforms show similarities in terms of profit generation, highlighting potential exploitation of African economies.

Nevertheless, there are positive examples such as Mumbuka Bank, a publicly community-owned fintech platform. It issues a digital currency tied to the Brazilian real and facilitates payments, loans, savings, and money transfer. Unlike profit-focused fintech platforms, Mumbuka Bank aims to support local citizens and develop the local economy. Its stronger understanding of local communities allows for better identification of potential businesses for support.

Another concern is the failure of brick and mortar microfinance due to commercialization, deregularization, and penetration by investors seeking high returns. The investor-driven fintech platform is on a similar trajectory, resulting in problems caused by over-indebtedness. Furthermore, microfinance institutions have created a massive over-indebtedness problem in Kenya. These issues highlight the potential for investor-driven fintech platforms to exacerbate problems.

The digital colonial model is based on exploiting technology, rather than labor. It allows foreign investors to take the majority of the value generated, under the cover of helping the poor. This model hardly requires any local labor, and foreign investors are usually from major economic centres like Silicon Valley or London. Exploiting technology rather than labor raises questions about who truly benefits from the value created through fintech platforms in Africa.

However, the value generated by adopting finance as a digitalized service can be used as a public service for rebuilding or building up countries. Similar to education and health being considered public services in many countries, digital finance has the potential to become a public service. Using the value generated for the development of countries helps not only in resolving poverty but also in building a stronger economy.

To address the potential negative consequences and ensure a more equitable distribution of benefits, it is suggested that countries build their own locally based fintech platforms and reinvest the generated value. This allows African countries to have greater control over their financial systems and direct the generated value towards their own economic development.

Finally, the Maricá model and cooperative fintech platforms are presented as alternatives to the digital colonial model. These models are currently under consideration and review. Choosing these alternatives may prevent taking the wrong path and facing negative consequences.

In conclusion, while fintech platforms have shown success, there are concerns regarding their potentially detrimental impacts on African economies and societies. The concept of digital colonialism is a significant point of concern, and investor-led fintech platforms may undermine sustainable development. However, examples like Mumbuka Bank offer a positive alternative. It is important to consider the potential long-term effects and explore alternative models like the Maricá model and cooperative fintech platforms to ensure more equitable and sustainable development in Africa.

Speakers

DM

Diego Moreira Maggi

Speech speed

122 words per minute

Speech length

1215 words

Speech time

596 secs

MB

Milford Bateman

Speech speed

156 words per minute

Speech length

4046 words

Speech time

1558 secs

MV

Myriam Vander Stichele Vander Stichele

Speech speed

159 words per minute

Speech length

1918 words

Speech time

722 secs

NC

Nandini Chami

Speech speed

150 words per minute

Speech length

784 words

Speech time

313 secs

Africa and the Digital Divide: Perspectives and Policies for catch up (Africa Trade Network)

Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

Knowledge Graph of Debate

Session report

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Africa Kiiza

The e-commerce industry in Africa is experiencing both positive and negative trends. On the positive side, Africa has generated close to $33 billion in e-commerce revenue in 2022, indicating the growing acceptance of online marketplaces in the region. As of 2020, Africa has a significant number of online marketplaces, with over 631 platforms recorded.

However, there are challenges that need to be addressed. Africa accounts for only 1% of global data centers, with the majority located in South Africa. To support data management and boost digital infrastructure, efforts should be made to establish more home-grown data centers across the continent.

Improving internet infrastructure is essential in driving the African digital economy, with the potential to increase digital services by over 70 billion. Therefore, Africa needs to focus on enhancing policy space and developing self-sufficient infrastructure to shape its own responsive data governance and e-commerce policies.

The African e-commerce landscape is characterized by an uneven playing field, with only ten countries responsible for a significant portion of businesses online. Additionally, there are structural and capacity issues that hinder e-commerce growth, such as mis-deliveries and delays due to addressing system limitations.

It is crucial for Africa to evaluate the effectiveness of current negotiations and rules in addressing the specific challenges faced in e-commerce. Agreements like the African Continental Free Trade Area (AFCFTA) and the Joint Statement Initiative (JSI) require careful consideration to address capacity gaps and competitiveness challenges.

In summary, Africa’s e-commerce industry shows promise, but there are challenges to overcome. Establishing home-grown data centers, improving internet infrastructure, and fostering an inclusive e-commerce ecosystem are key steps to fully leverage the opportunities in the digital economy.

Wullo Sylvester Bagooro

The panel discussion on Africa’s digital development addressed several key issues. One of the main points highlighted was the progress being made in bridging the digital divide in the continent. Examples from countries such as Kenya, Nigeria, Rwanda, and South Africa were cited as striking examples of how Africa is bridging this gap.

While progress is being made, it was also mentioned that there are policy measures that could hinder development in the digital sector. These policy measures were not specifically elaborated upon in the provided information, but it is clear that there are challenges that need to be addressed.

Another important argument raised during the discussion was that Africa is not only affected by the global digital divide but can also be part of the solution. This highlights the potential that Africa has to contribute to closing the digital divide globally.

The discussion also urged African countries to reconsider their approach to digital trade, as there are indications that the United States is considering withdrawing support for major trade rules. This highlights the need for African countries to adapt their strategies to these changing circumstances.

Structural economic transformation was identified as a priority for African countries. The panel emphasised that many African countries are heavily reliant on commodity exports, and this dependency extends to the digital sector. To meet the aspirations set out in Agenda 2063, which outlines Africa’s vision for the future, the panel stressed the importance of economic transformation.

Collaboration between civil society, the private sector, and governments was identified as a crucial factor in driving digital development in Africa. This calls for the involvement of multiple stakeholders and the fostering of partnerships to ensure a comprehensive and inclusive approach.

Additionally, the panel highlighted the importance of public investment for the establishment of data centres across the continent. This highlights the need for governments and relevant stakeholders to invest in the necessary infrastructure to support digital growth.

The discussion also emphasised the need for increased interaction and relationship building at both the continental and multilateral levels. This suggests that collaboration and cooperation among African countries and with international partners are essential for advancing digital development in the continent.

A final noteworthy observation made during the discussion was the need for better collaboration between governments, civil society organisations (CSOs), and the private sector in Africa. It was highlighted that there is a growing trend of small and medium-sized enterprises (SMEs) complaining that big tech companies are not sharing data. This emphasises the importance of fostering better collaboration and information-sharing mechanisms among these stakeholders.

In conclusion, the panel discussion shed light on various aspects related to Africa’s digital development. While progress is being made in bridging the digital divide, there are policy challenges that need to be addressed. Africa has the potential to be part of the solution to the global digital divide but needs to adapt its digital trade strategies to changing circumstances. Structural economic transformation, collaboration among stakeholders, public investment, and increased interaction and relationship building are crucial for driving digital development in Africa. Better collaboration between governments, CSOs, and the private sector is also necessary. Lastly, reducing commodity dependence and increasing production were identified as key factors in Africa’s development.

Herbert Kafeero

The analysis highlights several key points regarding the digital landscape in Africa. Firstly, there has been progress in terms of Internet penetration, with the percentage rising from 36% in 2014 to 53% in 2020. However, despite this positive development, there remains a usage gap in Africa. Furthermore, it is concerning that only 28 African countries have consumer protection laws in place to foster e-commerce, indicating a lack of adequate safeguards for online transactions.

Secondly, the analysis points out the existence of a digital divide within Africa. This divide manifests in disparities among different categories of people, and in particular, a widening gap among women. This suggests that certain segments of the population are being left behind in the digitalization process, potentially exacerbating existing inequalities.

Another key finding is the lack of necessary policies for digital transformation in Africa. Only 33 out of all African countries have adopted e-transaction laws, signifying a limited legal framework to facilitate digital transactions. Additionally, data protection policies were only recently passed in many countries, implying a lag in implementing measures to safeguard the privacy and security of digital information.

The analysis also emphasises the need for a comprehensive approach to digital transformation, involving not only the government but also non-state actors such as civil organisations and the private sector. This highlights the importance of broad collaboration and partnership to effectively drive digitalization efforts in Africa.

Moreover, it is crucial for Africa to establish its presence in the global digital economy as both a producer and consumer. Currently, most African countries primarily consume rather than generate digital content, indicating a dependence on external sources for digital services and products. Fostering a culture of innovation and entrepreneurship will be paramount in enabling Africa to play a more influential role in the digital economy.

Financial constraints emerge as a significant barrier to digital transformation in Africa. The analysis reveals that budget allocations for ICT development are insufficient in countries like Uganda. This highlights the urgent need for sufficient funding to build digital infrastructure and support the growth of the digital sector across the continent.

Furthermore, the analysis suggests that addressing challenges related to competition, intellectual property, taxation, industrial policy, privacy, cybersecurity, and the labour market will require new ways of thinking. This implies the need for innovative approaches and strategies to overcome these obstacles and achieve meaningful structural transformation.

Lastly, the analysis underscores the importance of greater participation from African countries in global digital rule negotiations. Currently, there appears to be less involvement from African countries compared to other actors such as the technical community and civil society. This observation highlights the need for Africa to actively engage in shaping global digital governance frameworks to ensure its interests and perspectives are adequately represented.

In conclusion, the analysis provides valuable insights into the current state of digitalisation in Africa. It highlights both progress and challenges, ranging from Internet penetration and the digital divide to policy gaps, funding limitations, and the need for new approaches. By addressing these issues and actively participating in global digital rule negotiations, Africa can accelerate its digital transformation and unlock the vast potential that the digital economy offers.

Audience

During the discussion, several concerns and challenges regarding Africa’s digital protocol and the implementation of international multilateral frameworks were addressed. The speakers emphasised that a one-size-fits-all approach does not work for Africa, as each country on the continent has its own unique circumstances. This highlights the need for a tailored approach to address the specific challenges faced by each country in Africa.

One of the significant problems discussed was the lack of data localisation in Africa. This refers to the storing and processing of data within a country’s borders. The speakers pointed out that without proper data localisation, there are risks of data sovereignty and privacy breaches. Additionally, tax issues emerged as a challenge, with speakers highlighting the difficulties in regulating and taxing digital transactions in Africa. This poses a barrier to effectively benefiting from the digital economy.

Another important concern that was raised is the low trust in African consumables. It was noted that building trust in African products is crucial for their successful integration into the international market. To address this, it was suggested that Africa should focus on building and leveraging its unique digital products, such as Afrobeats, to overcome challenges and take advantage of opportunities in the digital economy.

The audience also expressed concerns about the financing of the African Continental Free Trade Area (AFCFTA), questioning who is funding the work of the AFCFTA. This indicates the need for increased scrutiny and transparency in the financing process to ensure the successful implementation of the AFCFTA.

A noteworthy observation from the discussion was the caution against the exploitation of Africa’s own people. The speakers stressed the importance of avoiding exploitation and ensuring that the digital economy is inclusive and benefits all individuals in Africa.

Furthermore, the influence of big tech and platforms in Africa was regarded with wariness. The speakers highlighted the need to be cautious and ensure that Africa maintains its own autonomy and control in the digital space.

In terms of inclusive digital trade, dialogue between the trade sector and the financial services sector was seen as essential. This would foster cooperation and collaboration to manage risks, facilitate innovation, and enhance digital trade within Africa.

The integration between national payment systems and digital intermediation platforms emerged as a key aspect for successful digital trade. It was highlighted that instant payment receipts are crucial in digital trade, and an enabling environment can support this integration.

In conclusion, the speakers discussed the need for a tailored approach to address the challenges faced in Africa’s digital protocol and the implementation of international multilateral frameworks. They emphasised the importance of data localisation, resolving tax issues, building trust in African products, financing the AFCFTA transparently, avoiding exploitation, and being cautious of the influence of big tech. Dialogue between the trade and financial services sectors, as well as integration between payment systems and digital platforms, were considered crucial for inclusive digital trade. The IMF and UNCTAD were proposed as facilitators of meetings and dialogues to support digital trade facilitation.

Naidu Vahini

Upon closer analysis of the provided statements, several key points and arguments emerge. One significant concern raised is the belief that digital trade rules do not adequately support the development of domestic e-commerce in Africa. The argument suggests that these rules are designed to benefit foreign firms operating outside of Africa, underlining a negative sentiment towards digital trade rules. Additionally, it is mentioned that approximately 80% of African marketplaces are national marketplaces, highlighting the need for support in developing the domestic e-commerce sector.

Another important point raised is the potential impact of trade agreements on Africa’s creative industry. While no specific agreements are explicitly mentioned, it is suggested that these agreements may have a significant influence on the industry. For instance, in 2022, Afrobeats tracks experienced a substantial increase in streams on Spotify, with a 550% rise since 2017. This suggests that trade agreements can play a role in shaping the growth and success of Africa’s creative industry.

There is also a call for policy space within trade rules to encourage digital industrialization. It is mentioned that the United States recently withdrew its support for major trade rules, citing the need for policy space. This action is presented as evidence to support the argument advocating for policy space within trade rules.

On the other hand, there is criticism of the cross-border data transfer provision from the WTO Joint Statement Initiative on e-commerce, which is considered ill-suited for Africa. The provision is deemed to be lacking the necessary provisions for African countries to effectively use and secure their data. This criticism highlights a negative sentiment towards the current provision and calls for a better understanding of how to handle data in the context of trade agreements.

Furthermore, there are concerns about international agreements hindering the African Continental Free Trade Area (FCFTA) negotiations. It is proposed that a moratorium on trade rules should be implemented until the FCFTA negotiations and protocols are finalised. This stance indicates a neutral sentiment towards trade rules and emphasises the importance of ensuring the success of the FCFTA by avoiding potential conflicts with existing international agreements.

Implementation of Africa’s policy instruments is identified as a challenge, despite the presence of numerous policy instruments such as the Agenda 2063. The statement highlights the discrepancy between the existence of these instruments and their actual application, suggesting that more efforts are needed to effectively implement them and achieve their intended goals.

The analysis also points out the need for Africa to adopt a more defined and strategic approach in engaging in multilateral platforms. It is stated that the African group in the World Trade Organisation (WTO) needs to be strengthened to reflect its decreased power, indicating a negative sentiment and a call for stronger representation in multilateral platforms.

An interesting observation is the potential benefits of shifting to African platforms for services like streaming. It is suggested that African platforms can provide better revenue for artists compared to foreign platforms like Spotify, where the revenue per stream is relatively low. This perspective highlights the potential for African platforms to promote economic growth and reduce inequalities within the creative industry.

Another noteworthy argument is the positive perspective towards the moratorium on customs duties as a significant policy perspective. The argument suggests that the moratorium on customs duties can limit market access and foster an inward-looking perspective, indicating a positive sentiment towards the potential benefits of this policy approach.

Finally, there is criticism towards Kenya’s decision to negotiate a Free Trade Agreement (FTA) with the United States. It is argued that this decision contradicts the principles agreed upon by African heads of state, who had encouraged member countries to refrain from entering into agreements with countries outside of the continent until the FCFTA was fully implemented. This criticism reflects a negative sentiment towards Kenya’s decision and underscores the importance of unity and alignment in African trade strategies.

Additionally, it is noteworthy that African artists, such as Davido and Rama, earn minimal revenue from foreign platforms like Spotify. The evidence provided suggests that these artists receive around 0.01 cent per stream on such platforms, indicating a negative sentiment towards the current revenue distribution and the impact it has on African artists’ earnings.

In conclusion, the analysis of the provided statements reveals various concerns, perspectives, and arguments related to trade agreements, digital trade, data transfer, policy instruments, and the creative industry in Africa. These discussions highlight the need for comprehensive and strategic approaches within Africa’s trade policies and underline the importance of considering the impact on domestic industries and artists when engaging in international trade agreements. Additionally, the analysis emphasizes the significance of the African Continental Free Trade Area (FCFTA) negotiations and protocols, calling for the avoidance of potential conflicts with existing international agreements until the FCFTA is finalised.

Speakers

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Africa Kiiza

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143 words per minute

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1228 secs

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Audience

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135 words per minute

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959 words

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HK

Herbert Kafeero

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149 words per minute

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1870 words

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754 secs

NV

Naidu Vahini

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155 words per minute

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Wullo Sylvester Bagooro

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Fast-tracking a digital economy future in developing countries (UNCTAD)

Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

Knowledge Graph of Debate

Session report

Full session report

H.E. Massandjé Toure-Litse

The Economic Community of West African States (ECOWAS) Commission recognises the potential of digitalisation in achieving economic diversification, employment creation, and stability. To harness these possibilities, ECOWAS member states have adopted a strategy and implementation plan for e-commerce for the years 2023-2025. This forward-looking approach indicates their commitment to capitalising on the rise of digital commerce, which is expected to have a significant impact not only on ECOWAS but also on other countries worldwide, as highlighted by the World Trade Organization (WTO).

E-commerce is considered by the ECOWAS Commission as a crucial driver of economic growth and presents further opportunities for expansion. In Ghana, for instance, there has already been a notable increase in export values from US$99 million in 2008. The digital industries also have the potential to create cascading effects on related and adjoining sectors, further enhancing economic development.

Recognising the importance of collaboration and partnerships in the pursuit of e-commerce strategies, ECOWAS stands ready to work with esteemed partners such as the United Nations Conference on Trade and Development (UNCTAD) and the World Bank. By aligning efforts with these organizations, ECOWAS aims to enhance the efficiency and effectiveness of its e-commerce initiatives. This emphasis on partnerships reflects ECOWAS’ belief in the power of collective action in achieving shared goals and outcomes.

To effectively track the progress and impact of e-commerce development, ECOWAS recognises the need for improved statistical data. By having accurate and comprehensive statistics, policymakers and stakeholders can gain valuable insights into the emerging trends and patterns within the e-commerce sector. This information serves as a vital tool for informed decision-making and targeted interventions.

ECOWAS also underscores the importance of cooperation and coordination in the digital sphere. By fostering a culture of collaboration among member states, ECOWAS aims to ensure sustainable results from their collective efforts in digitalisation. This approach aligns with their commitment to the United Nations’ Sustainable Development Goals (SDGs) 9 (Industry, Innovation, and Infrastructure) and 17 (Partnerships for the Goals), demonstrating their dedication to inclusive and sustainable development.

Furthermore, ECOWAS highlights the significance of cooperation among governments, stakeholders, and international organisations in the effective implementation of digital commerce and e-commerce. They note that successful implementation necessitates close coordination and cooperation at various levels, enabling the creation and enforcement of regulatory frameworks, capacity building initiatives, and the facilitation of cross-border trade.

In line with these efforts, ECOWAS, through the appointment of H.E. Massandjé Toure-Litse, actively engages in legislative organisations of the United Nations that offer assistance for the implementation of digital commerce and e-commerce at the request of member states. The partnership with the United Nations Development Programme (UNDP) in evaluating legal texts and providing support to states in implementing e-commerce platforms exemplifies ECOWAS’ commitment to accompanying small players, particularly small and medium-sized enterprises (SMEs), in their digital ventures.

Importantly, a strong legal infrastructure at the national level is deemed critical for effective and credible international negotiations in digital cooperation. H.E. Massandjé Toure-Litse emphasises the necessity of having the infrastructure in place within individual countries to engage in international digital cooperation agreements successfully. Additionally, she urges active participation from countries in the working groups that develop model texts and conventions, solidifying ECOWAS’ commitment to inclusive and participatory decision-making processes.

In conclusion, ECOWAS acknowledges the transformative potential of digitalisation, particularly in the field of e-commerce, and is making significant strides in harnessing these opportunities. Their focus on cooperation, partnerships, data-driven decision-making, and strong legal infrastructure underscores their commitment to inclusive and sustainable economic development in the region. By leveraging the power of digital commerce, ECOWAS aims to drive economic diversification, create employment opportunities, and ensure stability, ultimately contributing to the achievement of the UN’s SDGs.

Lennise Ng

The analysis explores various facets of the digitalization of Micro, Small, and Medium Enterprises (MSMEs) in Southeast Asia. It emphasizes the importance of government investment and collaboration with tech enterprises in promoting MSME digitalization, citing examples of the Malaysian and Singaporean governments’ initiatives. Community-driven tech initiatives are also highlighted as effective strategies for localizing e-solutions, with Techkaki in Singapore serving as an example. The significance of strong digital infrastructure for business growth is discussed, particularly in addressing poor digital connectivity in rural areas. The analysis emphasizes the need for financial inclusion through investment in private and public partnerships, showcasing the tailored MSME financing products developed through collaboration with the Malaysian government. Furthermore, the empowerment of women entrepreneurs is emphasized as a way to create inclusive digital solutions. Investments in e-commerce, particularly by firms like Rocket Internet, are recognized for driving digital transformation in Southeast Asia. However, concerns about the sustainability of post-pandemic e-commerce platforms are highlighted. The analysis suggests shifting perspectives to promote e-commerce in communities with sufficient disposable income. Overall, the analysis underscores the importance of inclusive approaches to MSME digitalization and economic development in Southeast Asia.

H.E. Sithembiso G. G. Nyoni

Zimbabwe is prepared for the implementation of e-commerce, as evidenced by ongoing initiatives. Universities in the country have been tasked with conducting relevant research to contribute to e-commerce development. The government has also enacted computer crime and cyber crime acts to combat cyber threats and ensure a safe online environment. Additionally, the introduction of the Zim Connect portal allows citizens to access government services online, and community information centers have been established throughout the country.

However, there are challenges to overcome, such as improving the fiber backbone infrastructure in rural areas to ensure equal access to e-commerce opportunities. Partnerships in infrastructure and financial inclusion are vital for further e-commerce development. The involvement of the private sector in policy-making is essential for effective policies that drive economic growth. Collaboration between the government, private sector, and development partners is crucial to enhancing digital commerce.

In conclusion, Zimbabwe is ready to embrace e-commerce through research, cybercrime legislation, and the establishment of an e-system platform. By fostering partnerships and involving the private sector, Zimbabwe can enhance its digital infrastructure and unlock the potential of e-commerce for its citizens and economy.

H.E. Prasith Suon

Cambodia has experienced significant growth in the field of e-commerce over the past five years, with a particularly notable increase during the COVID-19 pandemic. This progress can be attributed to the successful implementation of recommendations from the e-trade readiness assessment conducted by UNCTAD in 2017. As a result, Cambodia has emerged as a top-performing country in UNCTAD’s second e-trade readiness implementation review.

To support the development of the e-commerce ecosystem and protect consumer rights, Cambodia has established various legal and policy frameworks. These include the enactment of key legislation such as the laws on e-commerce, consumer protection, and competition. These laws provide a solid foundation for a robust and secure e-commerce environment.

Private sector participation is crucial for the success of e-commerce initiatives, and Cambodia has actively engaged private sector stakeholders in policy discussions and formulation. The government has also received support from development partners for implementing projects such as Go for ECAM and Sea Trade for SME. This collaborative approach ensures that the e-commerce ecosystem is well-supported and can thrive.

Cambodia actively participates in e-commerce negotiations and discussions at both regional and multilateral levels. The country is party to various regional and bilateral agreements, including the ASEAN agreement on e-commerce and the regional comprehensive economic partnership (RCEP). These agreements facilitate regional cooperation and create opportunities for further e-commerce growth.

The CambodianTrade platform has played a significant role in boosting digital adoption and transformation among Cambodian SMEs. It provides a platform for 166 SMEs, including provincial and women-led businesses, to showcase their products and directly communicate with potential clients. The platform also offers fully integrated logistic service providers and payment gateways, enabling SMEs to conduct business efficiently.

To further support SMEs, Cambodia focuses on building and strengthening their capacities through digitalization and export readiness training. Various trainings and support have been provided to SMEs during and after the onboarding process. UNDP Cambodia and Khmer Enterprise collaborate to assist SMEs in overcoming innovative challenges and enhancing their competitiveness.

The CambodianTrade platform not only boosts domestic trade but also offers international exposure to Cambodian SMEs. SMEs have the opportunity to showcase their products on various social media platforms and engage in business matching through domestic and international expos. This exposure enhances their branding internationally and opens doors to new markets and partnerships.

Access to finance and resources is vital for the growth of SMEs in the e-commerce sector. CambodianTrade provides such access through venture capital, promoting the interest of value chain investors in Cambodia’s e-commerce sector. This support encourages the development of innovative and sustainable business models among SMEs.

To create a conducive environment for the digital economy, Cambodia focuses on building a robust legal framework. The ecosystem itself is now ready to endorse the legal aspects of the digital economy. Implementing the legal framework promptly, without delay, is crucial for attracting more investment and driving further growth in the e-commerce sector.

The endorsement of e-commerce laws is particularly significant in instilling confidence in investors. Some countries may be hesitant to endorse their e-commerce laws, but having a legal system in place strengthens investor trust and facilitates a secure and transparent e-commerce environment.

In conclusion, Cambodia has made significant progress in e-commerce, supported by the effective implementation of recommendations, the development of legal and policy frameworks, private sector participation, and active engagement in regional and multilateral negotiations. The CambodianTrade platform has played a vital role in boosting digitalization and international exposure for Cambodian SMEs. Building a conducive legal framework and endorsing e-commerce laws are crucial for attracting investment and ensuring a secure and transparent e-commerce environment. With ongoing efforts, Cambodia is well-positioned to continue its growth in the e-commerce sector.

Moderator – Isabelle Kumar

During the discussion, speakers highlighted the importance of e-commerce readiness and reducing digital divides in various countries. Ghana and Mauritania were praised for their strong potential in e-commerce and their commitment to national digital transformation. Ghana, in particular, has made significant investments in ICT infrastructure, positioning them well for e-commerce opportunities. Similarly, Mauritania validated its e-trade readiness assessment, which is seen as a crucial tool in operationalising the country’s ambitious national digital transformation agenda.

Governments such as ECOWAS, Kenya, Tunisia, and Zimbabwe were commended for their ambitious strategies in reducing digital divides. ECOWAS adopted its first e-commerce strategy, Kenya is launching its first national e-commerce strategy, Tunisia is implementing an action plan to contribute to the digitalisation of the central bank’s information system, and Zimbabwe is about to embark on a journey towards e-commerce. These efforts reflect a strong commitment by governments to bridge the digital divide and create opportunities for their citizens.

It was emphasised that moving from policy recommendations to implemented initiatives is crucial in e-commerce. Merely making policy recommendations is not enough; practical groundwork and execution of these recommendations are essential. The importance of executing policies for effective e-commerce was highlighted during the discussion.

Specific challenges facing countries include limited internet infrastructure, payment and finance barriers, lack of trust and security, logistical and infrastructural concerns, market fragmentation, and a digital literacy gap. Overcoming these challenges requires the growth of the ICT sector, the uptake of mobile money, and the introduction of digital currencies. These promising avenues can address the various barriers to e-commerce.

Diagnostic studies, such as UNCTAD’s e-trade readiness assessment, were acknowledged as valuable tools for countries to develop a roadmap for building an enabling environment for e-commerce. These studies help identify areas of improvement and guide countries in enhancing their e-commerce capabilities.

Zimbabwe, in particular, is ready to implement e-commerce with its efforts to create both soft and hard digital infrastructure. They have made progress in creating a conducive environment for e-commerce, including drafting a computer crime and a cybercrime act. Currently, Zimbabwe has about 200 community information centres, and different government services can be accessed online through the Zim Connect portal.

Zimbabwe seeks partnership with UNCTAD to refine their e-commerce implementation. They aim to collaborate with UNCTAD to identify gaps in their e-commerce implementation, assess barriers to their roadmap, and develop tools to measure their progress.

Cambodia’s inclusive approach to developing e-commerce and digital trade was highlighted as a model for other developing countries. Their journey started with an e-trade readiness assessment in 2017, followed by a national strategy and the creation of a public-led platform. During Cambodia’s last e-week in Geneva, the Cambodia trade marketplace was launched, demonstrating their commitment to developing an inclusive digital economy and society.

The importance of collaboration between government ministries and development partners in developing digital commerce platforms was emphasised. This collaborative approach ensures that different perspectives and expertise are considered and integrated into the planning and implementation process.

The need for comprehensive and inclusive legal frameworks for e-commerce was also discussed. Legal texts and frameworks should take into account the interests of all actors involved and ensure a robust legal landscape. The role of organisations like UNCTAD in providing assistance to governments in preparing these laws and regulations was acknowledged.

Trust in online transactions was highlighted as essential for the effective functioning of e-commerce. Without trust, consumers may hesitate to engage in online transactions, hindering the growth of e-commerce. Mauritania was mentioned as an example where the lack of trust is a challenge that needs to be addressed.

Efforts to support women-led SMEs and provincial businesses through e-commerce platforms were recognised. Cambodia’s Komoran Trade platform, supervised by the Ministry of Commerce, provides an opportunity for SMEs to connect with domestic and cross-border buyers and business partners. This initiative supports gender equality and inclusive economic growth by enabling women-led enterprises to participate in e-commerce.

Observations from the discussion include the appreciation for local adaptations of global business models. Locally developed solutions that cater to specific needs were mentioned, highlighting their inclusiveness and effectiveness.

The importance of a conducive digital ecosystem and the role of the government in fostering small businesses and the startup ecosystem were supported. The release of laws designed to support small businesses and startups in Mohamed Abdallahi Louly’s country was acknowledged as a positive step.

Market fragmentation challenges in e-commerce can be addressed by standardising trust in platforms. The idea of labelling platforms as trusted and technically acceptable solutions was discussed, which could provide support and opportunities for success to those platforms.

Improving digital infrastructure for better e-commerce and digital trade in Africa was a topic of discussion. Moderator, John Odona, raised a question about ways to enhance inadequate infrastructure to enable better e-commerce. This highlighted the importance of investing in digital infrastructure to support e-commerce development in the region.

A holistic approach and consideration of the specific context of each country were emphasised in developing digital trade. It is important not to adopt a one-size-fits-all approach but to tailor strategies and initiatives to suit the unique circumstances of each country.

Collaboration involving the private sector and development partners was encouraged to foster cross-sector partnerships and lay the groundwork for successful e-commerce ecosystems. The involvement of development partners was seen as crucial in encouraging cross-border trade and supporting the development of a robust e-commerce environment.

Building a conducive legal environment for a digital ecosystem was highlighted as an important factor in promoting e-commerce. Laws and regulations should be comprehensive, inclusive, and consider the interests of all actors involved.

The discussion also emphasised the importance of inclusion and eliminating exclusion in e-commerce. It was stressed that exclusion should be eradicated at all costs, and efforts should be made to ensure equal access and opportunities for all. This reflects a commitment to reducing inequalities and promoting inclusive economic growth through e-commerce.

In conclusion, the discussion highlighted the importance of e-commerce readiness, reducing digital divides, and fostering inclusive digital ecosystems in various countries. Governments, development partners, and organisations such as UNCTAD play crucial roles in supporting countries in their e-commerce implementation efforts. Collaboration, practical implementation of policies, trust in online transactions, and inclusive approaches were among the key factors discussed in developing successful e-commerce ecosystems. By addressing challenges, investing in infrastructure, and fostering partnerships, countries can leverage the potential of e-commerce for economic growth and social development.

Mohamed Abdallahi Louly

Mauritania’s government is prioritising digital transformation to modernise the country and stimulate the development of e-commerce. However, the country faces significant challenges, including limited internet infrastructure, payment and financial obstacles, security and trust issues, logistical hurdles, regulatory concerns, a digital literacy gap, and market fragmentation.

To address these challenges, Mauritania has developed the National Digital Transformation Agenda (DNA) with input from various government ministries and development partners. Continuous dialogue with stakeholders, such as e-commerce partners, the central bank, and the Ministry of Commerce, is essential for a successful digital transition. The High Council of Digital, composed of seven ministries and led by the Prime Minister, aids in the governance and decision-making process.

The government encourages local businesses to develop their own technologies for e-commerce, enabling more inclusive solutions that cater to specific local contexts. They have also released laws supporting small business start-ups and providing incentives for import and local market share.

Efforts are being made to address market fragmentation and standardise trust in e-commerce platforms. The government advocates for defined standards and supports companies that meet them. Capitalising on existing infrastructure, such as fibre optics, is seen as essential for extending connectivity.

Investment is imperative to build the necessary infrastructure for e-commerce development, and $30 million has already been mobilised for this purpose. Satellite opportunities, like Starlink, have been utilised to connect remote areas and reduce inequalities.

Overall, Mauritania is committed to overcoming the challenges it faces in achieving digital transformation and fostering the growth of e-commerce. The government’s initiatives, in collaboration with stakeholders, aim to address infrastructure limitations, regulatory concerns, market fragmentation, and the digital literacy gap. By leveraging existing infrastructure, making necessary investments, and promoting standardisation and trust, Mauritania can establish a strong foundation for its digital economy and drive sustainable growth.

Anna Joubin Bret

UNCTRAL, the United Nations Commission on International Trade Law, plays a crucial role in creating harmonized legal texts for e-commerce and the digital economy, which are essential to create trust in online transactions. They provide guidance to governments to prepare laws and regulations, focusing particularly on e-transaction laws. Their work allows for interconnectivity and interoperability of the legal infrastructure, ensuring effective communication and transactions between different countries. UNCTRAL has been a longtime partner of UNCTAD, further strengthening their role in shaping international trade.

Recently, UNCTRAL has developed a model law on electronic transferable records, which gives trade activities the same legal value as traditional paper-based documents. This promotes paperless trading and facilitates digital trade. They have also introduced a model law on identity management and trust services, which establishes standards for digital identity recognition, enabling seamless trading and trust in digital transactions.

It is argued that countries should adapt existing legal frameworks rather than introducing new legislation to regulate the digital landscape. This allows for a more flexible and efficient response to the rapidly progressing e-commerce and digital trade. Incorporating artificial intelligence and automation into transactions is also important for enhancing efficiency and accuracy.

A balanced legal framework is crucial for the digital economy, encompassing both protective measures such as data protection and cybersecurity, as well as enabling aspects that foster innovation and digital progression. Supporting local communities in developing their own digital solutions is seen as vital for sustainable digital progression.

In conclusion, UNCTRAL’s work in creating harmonized legal texts and providing guidance in e-commerce and the digital economy is vital for establishing trust in online transactions. Their efforts in developing model laws on electronic transferable records and identity management strengthen the legal foundation for digital trade. Adapting existing legal frameworks, incorporating AI and automation, and maintaining a balanced legal framework are crucial for enabling seamless trade and fostering digital innovation. Supporting local communities in their own digital solutions is key to sustainable digital progression.

Audience

During the discussion on the digital economy and e-commerce, several key points were raised. It was emphasised that encouraging individuals to build their own technologies is crucial for advancing the digital economy. The importance of digital infrastructure was highlighted, with a mention of the government’s efforts to work with local small and medium enterprises (SMEs) to help with e-commerce. This points to a need for encouragement and support for people to develop their own technologies and contribute to the advancement of the digital economy.

Pre-pandemic, there was significant investment in e-commerce by the private sector. Examples were given, such as Rocket Internet’s investment in platforms like Lazada and Shopee, which led to the growth of e-commerce in Southeast Asia. This investment played a key role in the adoption of e-commerce in the region.

However, during the post-pandemic phase, many e-commerce platforms faced challenges and downfall. Draining of funds and the inability of businesses to sustain themselves were mentioned as contributing factors. The pandemic brought about a change in perspective, and there was a need to encourage e-commerce adoption in order to adapt to the new normal.

The rise of middle-income communities was highlighted as a factor contributing to the increase in e-commerce adoption. As communities move towards middle income levels, their purchasing power and access to digital technologies increase, leading to a greater adoption of e-commerce platforms.

The importance of community and nation-building was acknowledged during the discussion. It was emphasised that a country is built by its own people, and their impact cannot be underestimated. This highlights the need to empower individuals and communities to actively participate in building their countries, including in the context of the digital economy.

Concerns were raised about market fragmentation and monopolisation in the digital economy. This calls for solutions to ensure fair competition and reduce inequalities. There were also questions on the involvement of private companies in e-commerce policy discussions. The audience showed skepticism about private companies’ influence in policymaking due to regulatory concerns, highlighting the need for a balanced market structure.

The need for homegrown solutions and infrastructure development was emphasised, particularly in Africa and Nigeria. It was acknowledged that the digital ecosystem should be built taking into account the specific needs and challenges of developing countries. The partnership with UNACTD was appreciated, and challenges in developing countries were discussed.

Different countries approach the creation of a robust and inclusive digital ecosystem differently. Some countries opt for enacting entirely new legislation, while others choose to adjust their existing legal and regulatory frameworks. This reflects the diverse approaches towards regulating the digital landscape and ensuring its inclusivity.

The interplay of different branches of law in regulating the digital economy and the digital landscape was highlighted. Legal frameworks consistently require the interaction of various branches of law to effectively govern the digital economy.

Several questions were asked during the discussion. One question was whether to enact new legislation or adjust existing laws to create an inclusive digital ecosystem. Another inquiry was about how UNCTRAL model laws are enacted. The audience was also interested in learning which method is better for ensuring the interoperability of legal texts across borders.

Overall, the discussions shed light on the importance of encouraging individuals to build their own technologies, the challenges faced by e-commerce platforms in the post-pandemic phase, the impact of middle-income communities on e-commerce adoption, the significance of community and nation-building, concerns about market fragmentation and monopolisation, the need for homegrown solutions and infrastructure development, the different approaches towards creating a robust and inclusive digital ecosystem, and the interplay of different branches of law in regulating the digital landscape. The audience expressed skepticism about private companies’ involvement in policymaking and sought guidance on legal enactments and ensuring interoperability of legal texts. These insights contribute to a deeper understanding of the complexities and opportunities in the digital economy and e-commerce sector.

Pedro Manuel Moreno

The analysis highlights significant developments and opportunities in the field of e-commerce. The adoption of ECOWAS’ first e-commerce strategy demonstrates a commitment to advancing digital trade. Kenya is launching its national e-commerce strategy, while Tunisia is implementing an action plan to digitise its procedures. Ghana’s e-trade readiness assessment has revealed a strong potential for e-commerce, and Mauritania’s recent e-trade readiness assessment has validated this potential. Additionally, Cambodia has implemented reforms to enable e-commerce, showing dedication to embracing digital transformation.

Capacity building is fundamental in addressing the complexities of e-commerce and digital trade. Many developing countries require improvements in strategic planning, stakeholder engagement, monitoring, and evaluation. E-trade readiness assessments are crucial for informing policymaking and promoting digital transformation by identifying areas of improvement.

However, challenges exist in the e-commerce field. More resources and better coordination of interventions are necessary to ensure smooth progress and implementation of e-commerce initiatives. The pace of resource allocation is not keeping up with the actual needs, indicating a potential gap between demand and supply. Although the e-trade for all initiative plays a significant role, further efforts are needed to bridge this gap and enhance resource allocation.

To effectively implement e-commerce policies, closer collaboration with UN resident coordinator offices is recommended to strengthen government capabilities. This collaboration would enhance stakeholder engagement and strategic planning, which are crucial for effective policy implementation. Governments can leverage the expertise and resources of UN resident coordinator offices to facilitate the implementation of e-commerce policy actions.

Overall, the analysis highlights progress in the field of e-commerce, with countries adopting strategies and implementing reforms to embrace digital trade. However, more resources and better coordination are needed. Closer collaboration with UN resident coordinator offices can help strengthen government capabilities and facilitate effective policy implementation in e-commerce.

H.E. Marchel Gerrmann

Investing in the digital economy has significant benefits for small and medium-sized enterprises (SMEs). By embracing digital trade, SMEs can boost innovation, generate employment, and address inequalities. The digital economy presents SMEs with the potential to grow their businesses, increase productivity, and contribute to economic development.

Digital policies play a critical role in empowering people and businesses to create a prosperous and human-centered digital future. These policies should focus on bridging the digital divide and ensuring equal access to digital technologies and opportunities. By closing the digital gap, societies can enhance human development and create more inclusive economies.

The Dutch foreign trade and international cooperation policy recognizes the transformative impact of rapid digital development and has shifted its attention towards digital and sustainable transitions. These transitions provide inclusive employment opportunities, particularly for young people in sectors such as agri-tech, fintech, and e-commerce. The commitment to investing in technical assistance for inclusive digitalization highlights the importance of providing reliable digital platforms and services for all, including farmers and entrepreneurs.

When designing programs, it is crucial to consider digitalization from the beginning. By fully harnessing the power of digital technologies, programs can achieve better development results. Digitalization should be integrated into program design processes to ensure effective implementation and maximize potential for positive change.

Sharing successful examples and collaborating as a community of practitioners is essential for scaling up initiatives. By learning from and replicating successful practices, communities can advance together towards their goals. Collaboration and knowledge-sharing are crucial for scaling up the impact of digital initiatives and addressing societal challenges.

In addition to effective communication and collaboration, using a common language that everyone understands is crucial for successful scaling up. By emphasizing inclusivity and ensuring clarity in discussing challenges and opportunities, stakeholders can work together effectively towards reducing inequalities.

In summary, investing in the digital economy benefits SMEs, promoting growth and sustainability. Digital trade fosters innovation, employment, and addresses inequalities. To achieve a prosperous digital future, bridging the digital divide and developing empowering policies is necessary. The Dutch foreign trade and international cooperation policy focus on digital and sustainable transitions, creating inclusive employment opportunities. Considering digitalization from program design enables effective implementation. Collaboration and knowledge-sharing among practitioners drive scaling up initiatives. Inclusive communication facilitates progress in reducing inequalities.

Speakers

AJ

Anna Joubin Bret

Speech speed

143 words per minute

Speech length

1683 words

Speech time

705 secs

A

Audience

Speech speed

153 words per minute

Speech length

751 words

Speech time

295 secs

HM

H.E. Marchel Gerrmann

Speech speed

142 words per minute

Speech length

817 words

Speech time

346 secs

HM

H.E. Massandjé Toure-Litse

Speech speed

129 words per minute

Speech length

1318 words

Speech time

612 secs

HP

H.E. Prasith Suon

Speech speed

90 words per minute

Speech length

1573 words

Speech time

1050 secs

HS

H.E. Sithembiso G. G. Nyoni

Speech speed

139 words per minute

Speech length

1279 words

Speech time

551 secs

LN

Lennise Ng

Speech speed

148 words per minute

Speech length

1179 words

Speech time

479 secs

M-

Moderator – Isabelle Kumar

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Mohamed Abdallahi Louly

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Pedro Manuel Moreno

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Shaping Investment: Spurring Investment in Cyber Sector Start-Ups

Table of contents

Disclaimer: It should be noted that the reporting, analysis and chatbot answers are generated automatically by DiploGPT from the official UN transcripts and, in case of just-in-time reporting, the audiovisual recordings on UN Web TV. The accuracy and completeness of the resources and results can therefore not be guaranteed.

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Shoaib Yousuf

Investments in cybersecurity startups have declined due to global economic stress, rather than any industry-specific issues. Uncertainty surrounding where and when to invest in the current economic conditions has caused investors to be cautious. In 2021, the number of unicorns (startups valued at over $1 billion) in the cybersecurity sector has dropped to six, compared to 36 in previous years. This decline in investments serves as evidence of the overall decrease in cybersecurity startup funding.

However, despite the current dip, the cybersecurity industry still holds immense potential and is expected to bounce back once the right challenges are addressed. Historical success stories of cybersecurity businesses, known as unicorns, highlight the profitability and viability of the industry. Startups that focus on tackling the right challenges can attract capital and thrive in the cybersecurity sector. Thus, maintaining a positive sentiment toward the industry’s potential to overcome the current decline in investments is crucial.

Looking ahead, the market outlook for cybersecurity remains promising and is anticipated to improve in the next few years. While the global economic stress has caused investors to pull back on startup investments, there is optimism based on both the historical performance of the industry and its potential for future growth. Therefore, despite the temporary setback, a positive sentiment can be maintained for the future of the cybersecurity market.

Artificial intelligence (AI) is impacting all industries and offering new growth and innovation opportunities. Industries, startups, and companies that embrace and understand the potential of AI are well-positioned to become leaders in their respective fields. This positive sentiment toward AI stems from its ability to revolutionize how challenges are perceived and addressed across various industries.

Furthermore, infusing AI into cybersecurity products is considered crucial for scalability, operational efficiency, and unlocking new insights. The availability of AI tools to cybercriminals makes it imperative for cybersecurity products to adopt AI to effectively counter emerging threats. By incorporating AI into cybersecurity, businesses can enhance their capabilities to detect and respond to threats, ensuring a more robust security infrastructure.

In the domain of AI, there are AI-centric products, fully driven by AI like Google’s JetGPTs, and AI-infused products, which involve integrating AI into existing technology offerings. Tech leaders such as Oracle, Salesforce, and Microsoft have already begun infusing AI into their products. This highlights the availability of different types of AI-driven or AI-enhanced products within the market.

Challenges such as scalability, cost, and investment persist for startups in the tech industry. However, the advent of GPU as a service over the cloud is expected to make tech scalability more affordable for startups. This development can potentially mitigate the barriers that tech scalability currently poses for startups, leading to increased opportunities in the tech industry.

Regarding investments in the tech industry, there is a positive sentiment for startups as hyperscalers increasingly invest in tech. Hyperscalers, such as Amazon, Google, and Microsoft, provide cloud services and have substantial investments in hardware, software, and infrastructure. This investment influx, combined with the affordability of GPU as a service over the cloud, indicates a growing opportunity for tech startups to secure funding and support for their ventures.

In the realm of cybersecurity, public-private partnerships hold promise, but their effectiveness relies on various factors. Factors such as economic conditions, market size, maturity of a particular country, fragmentation, and demand for cybersecurity services impact the efficacy of these partnerships. Moreover, countries that lag in cybersecurity capacity may require a central role from the government to address gaps and stimulate growth. This neutral sentiment underscores the need to consider multiple factors for successful public-private partnerships in the realm of cybersecurity.

Supporters of government involvement and proponents of public-private partnerships assert that they can facilitate growth and innovation in cybersecurity. Governments can play an essential role in bringing together the private sector, stimulating research and development activities, and incentivizing beneficial initiatives. Public-private partnerships, in turn, can support startups and foster innovative ideas in cybersecurity. By aiding in technology transfers and reducing the high costs associated with patenting, such partnerships provide crucial support for startups in the cybersecurity domain. This positive sentiment highlights the potential benefits of government involvement and public-private collaboration in driving growth in the cybersecurity sector.

In conclusion, investments in cybersecurity startups have faced a decline due to global economic stress, rather than any inherent flaws within the industry. Nevertheless, the cybersecurity industry holds significant potential and is expected to rebound once the right challenges are addressed. The market outlook for cybersecurity remains promising, and the industry is projected to improve in the coming years. The impact of AI is being felt across various industries, and its integration into cybersecurity products is crucial for enhanced security measures. Investments in the tech sector, particularly for startups, are expected to increase, aided by the support of hyperscalers and affordability of scalable technology solutions. Public-private partnerships are deemed effective in cybersecurity, depending on economic conditions and national dynamics. Government involvement in fostering such partnerships can stimulate growth and support startups in the cybersecurity field. Overall, these observations and insights highlight the various factors and dynamics that shape the cybersecurity and tech industries, and offer a comprehensive understanding of their present situation and future potential.

Moderator – Nisha Pillai

Cybersecurity startups are recognized for their crucial role in driving innovation and addressing emerging threats in the sector. These early-stage startups leverage capital from investors to expand their technological offerings and global reach. Their agility and fresh thinking enable them to find gaps and opportunities in the industry. However, they face challenges such as competition from larger firms and a drop in investments. The impact of Artificial Intelligence (AI) on cybersecurity startups is seen as crucial, with the potential to enhance the quality of cybersecurity products and services, but also posing new cybersecurity challenges. Government support is necessary to help these startups thrive, and specific schemes aimed at assisting them in developing saleable products and establishing a strong company structure are in place. Overall, cybersecurity startups play a significant role in addressing the evolving landscape of threats and innovation in the sector.

Kenneth Pentimonti

The analysis highlights the significance of investing in cybersecurity startups for both the economy and societal security. These startups play a crucial role in driving innovation in the cybersecurity space, as large companies and governments are unable to meet all the demands. The continuous evolution of cyber threats requires new technologies that can adapt to these changes, hence startups are well-positioned to provide innovative solutions.

One important aspect for cybersecurity startups is their ability to differentiate themselves in a crowded market. Since many startups appear to be offering similar services, it is crucial for them to clearly understand and communicate their unique offerings. Differentiation can often be achieved from a technological standpoint, where startups can showcase their advanced capabilities and features.

Understanding the market and clearly defining it is another key factor for success in the cybersecurity sector. As cybersecurity spans across various areas such as networks, data, cloud, and communication channels, companies need to define the size and scale of their target market. This market knowledge allows them to effectively tailor their products and services to meet the specific needs of their customers.

Capital investment in cybersecurity startups is necessary for their growth and expansion. However, investment capital is expensive, and companies need to have a clear plan on how they intend to use it. Ideally, the capital should be used for additional capabilities development and sales/marketing efforts to increase the reach and impact of their products.

Investing in cybersecurity startups presents a great opportunity, but careful assessment is required. The cybersecurity sector is growing rapidly, attracting many new entrants. Therefore, investors need to carefully evaluate these startups and their unique offerings to differentiate them from others in the market. Having a clear understanding of how the investment capital will be utilized is also crucial for ensuring a successful investment.

Artificial Intelligence (AI) holds tremendous potential in the cybersecurity space. AI can be infused in products to make them faster, easier to use, and more effective. It can also help sort through large volumes of data quickly, which is invaluable in identifying threats and external attacks on networks. However, it is essential to prioritize the security of AI models and the data feeding into them to avoid potential vulnerabilities and breaches.

The cybersecurity sector has experienced significant growth in recent years, with the emergence of several successful companies. This growth is expected to continue as the demand for robust cybersecurity solutions remains high. Unicorn companies, those with valuations over $1 billion, are becoming increasingly common in the sector, highlighting its potential for economic growth and job creation.

Public-private partnerships have been instrumental in driving technological innovation, particularly in the realm of cybersecurity. Success stories from various countries, such as the US, UK, and France, demonstrate how collaborations between government and industry have led to the development and adoption of innovative technologies. These partnerships provide support, funding, and mentorship to early-stage companies, helping them secure funding and refine their products.

In conclusion, investment in cybersecurity startups is crucial for both economic growth and societal security. Startups bring valuable innovation to the constantly evolving cybersecurity space, and their differentiation and understanding of the market are essential for success. Investment capital should be used strategically, and careful assessment of startups is necessary to make successful investments. AI presents significant opportunities but requires a focus on security. The cybersecurity sector has experienced impressive growth, and public-private partnerships have played a key role in driving innovation. Supporting early-stage companies through mentorship and funding can help them overcome initial challenges and contribute to industry growth.

Peter Sund

The analysis highlights the potential and necessity of cyber security startups and the use of AI. Despite the dominance of large corporations in the industry, there is still room for startups to thrive due to their agility and innovative thinking. Startups are more agile and can identify gaps and opportunities missed by larger companies.

Prominent figure Peter Sund believes in the importance of startups in the cyber security sector. He recognizes their agility and innovation, emphasizing their role in identifying untapped potential and addressing emerging challenges.

Regarding AI, there is a lot of hype surrounding its applications, but it has yet to fully permeate all aspects of society. However, AI systems have the potential to manage companies and increase productivity.

There are concerns about the misuse of AI, as there is a history of technologies being misused. However, this also presents an opportunity for cyber security startups to provide solutions and counter malicious actors.

AI will likely be needed to counter bad AI in the cyber security field, highlighting the importance of investing in cyber security startups to develop and deploy AI solutions.

Government support is important for smaller companies, especially when they are engaged in innovative ventures. Smaller companies often struggle with running their businesses and acquiring funding. Government programs can help them thrive and contribute to economic growth.

However, caution is advised to ensure that government intervention does not stifle competition. Maintaining healthy levels of competition is essential for fostering innovation.

For countries with smaller internal markets, such as Finland, the focus should be on international trade. By expanding their trade networks and engaging in global partnerships, these countries can spur growth and innovation.

In conclusion, the analysis underlines the relevance and potential of cyber security startups in an industry dominated by large corporations. It highlights the importance of their agility and innovative thinking. The analysis also emphasizes the promise of AI in managing companies and increasing productivity, while acknowledging the risks of its misuse. Government support for smaller companies is recommended, as long as it does not compromise competition. Lastly, international trade is seen as crucial for countries with smaller internal markets to achieve growth and sustainable development.

Juliette WilCox CMG

Investing in and supporting cyber security startups is crucial for the resilience and growth of the industry. The UK government recognizes the value of nurturing a successful ecosystem of cyber startups and the critical role they play in government, business, and society. These startups often drive innovation and come up with unique solutions due to their freedom to think and act differently.

However, small companies, including cyber startups, face challenges in business planning and effectively communicating their strategies. They may lack clarity in their business plans and struggle to articulate their value proposition to stakeholders. Additionally, finding the first customer can be a significant hurdle for small companies, as they often lack an existing customer base.

To stay competitive, small companies must have a well-defined plan for scaling and continuous innovation. While they may have innovative products, the risk of competitors copying their ideas or technology is ever-present. Therefore, small companies must continually evolve and innovate to maintain a competitive edge.

It’s worth noting that some small companies may start with the hope of being acquired by larger entities. This acquisition strategy allows them to benefit from the resources and expertise of a larger organization.

Juliette, a supporter of small companies’ growth, emphasizes the importance of aiding these companies in understanding their business lifecycle. This support includes helping them export their products, expanding their market reach.

One common challenge for startups, including cyber startups, is effectively marketing their innovative ideas and technology. While many startups have good ideas and technology, they often lack the knowledge and expertise in marketing and sales. Support systems in the UK, such as the National Cyber Security Centre (NCSC), Cyber Runway program, and clusters program, provide assistance and guidance to startups in marketing their products.

Startups should be willing to enter into support ecosystems that provide the necessary resources and mentorship for business development. Recognizing the logical business development process is crucial for startups to navigate the challenges they may face in their growth journey.

While attracting venture capital funding is often seen as an achievement for startups, it shouldn’t be their end goal. Startups should focus on developing viable products and building a sustainable business model.

In the realm of cyber security, specific schemes and programs in the UK support startups in developing viable products and business strategies. The UK’s NCSC offers various programs that help cyber security startups grow into viable companies. These programs provide opportunities for startups to connect with UK and overseas partners, mentors, and access financing options. For example, the “cyber runway” scheme supports companies at all stages of development, providing access to markets, mentorship, and business planning assistance.

The government plays a crucial role in supporting and connecting cyber security startups with industry partners. By doing so, the government ensures the development and growth of these startups, enabling them to effectively tackle future cyber security challenges.

In conclusion, investment and support for cyber security startups are fundamental for the resilience and growth of the industry. The UK government actively fosters an environment conducive to the success of cyber startups. Additionally, small companies, including cyber startups, face challenges in business planning, customer acquisition, scaling, and market competition. Government intervention and support, as well as the willingness of startups to enter into support ecosystems, are crucial for their growth and success. With the right support and guidance, startups can develop viable products, establish a strong market presence, and contribute to the overall growth of the cyber security industry.

Session transcript

Moderator – Nisha Pillai:
Investment in Cyber Sector Startups, Kenneth Pentimonti, Principal and European Manager, Paladin Capital Group, Juliette Wilcox, CMG, Cyber Security Ambassador, Department for International Trade, UK, Peter Sund, Chief Executive Officer, Finnish Information Security Cluster, FISC, Nisha Pillai, Moderator, International Moderator, Former BBC Presenter, Shoaib Youssef, Managing Director and Partner, Boston Consulting Group. Excellencies, ladies and gentlemen, good afternoon and welcome to Sparring Investment in Cyber Sector Startups, that’s quite a mouthful really, Cyber Sector Startups and you’re going to hear those words, Cyber Sector Startups, over and over again in the next half hour or so because we’re going to talk about why it’s so important to create a thriving ecosystem of cyber security startups and also big firms but it’s not enough to have big ones. Why is that? That’s what we’re going to be discussing. What can small startups do to make themselves more attractive to investors? And more important of all, what can governments do to support small cyber startups? Let me introduce you to our eminent guests. We have at the far end with us someone who knows all about cyber security investment because that’s what his business does, Ken Pentimonti, Principal and European Manager of the Paladin Capital Group, welcome Ken. Sitting next to him is Shoaib Yusuf, Managing Director and Partner of the Boston Consulting Group based in Dubai, he’s just flown in. We are delighted to welcome Her Excellency Juliette Wilcox-CMG who is the Cyber Security Ambassador for the UK government, welcome Juliette. And finally from Finland, Peter Sund, CEO of the Finnish Information Security Cluster. So shall we get stuck right in? Your Excellency Juliette Wilcox, I’d like to ask you for the British government’s perspective first off on the importance of a flourishing ecosystem of small and innovative cyber security startups.

Juliette WilCox CMG:
Thank you, well it’s a real pleasure to be here and talking about the ecosystem is absolutely at the heart of the UK government’s cyber strategy and that reflects I think the importance we attach to building a really strong and resilient cyber security industry to support businesses, to support societies, to support the government. But it has to start somewhere and quite often when you’re thinking about innovation, about new ideas, about taking risks, about thinking things differently, then some of these are things that flourish out of very sort of small groups of thinkers, possibly connected to academic institutions, people who have come up with a good idea and are just trying to put it together and not necessarily bound by a grand strategy for a large company or indeed the sort of directive finance that sometimes comes with that. So you can get some of the incredible innovation that comes out of small startup companies thinking this through. But of course and as I’m sure we’ll explore today, it’s not as straightforward as that but frequently it’s where the spark, the innovation and the mad idea comes from in the first place. And for the UK, making sure that that access to that innovation and that innovation is allowed to flourish is absolutely at the heart of our sense of what the ecosystem needs to be supported by.

Moderator – Nisha Pillai:
Thank you very much for getting us going. Ken Pantamonti, well Paladin this is what you do, security investments, cyber securities, you have one fund devoted just to cyber security investments. So what are the key benefits for investors and the broader cyber security ecosystem from investing in early stage small startups?

Kenneth Pentimonti:
Well thanks Nisha, it’s a pleasure to be here and yeah I think there are multiple benefits to invest in early stage startups in the cyber space. Obviously first it’s we believe a fantastic place to invest just from a pure returns perspective. We think that the cyber security sector is a huge and growing area for all of the reasons that we’ve been discussing over the last couple of days. It’s a space, a sector that’s critical for national security, for corporate security, for the betterment of our society. And so it’s a sector where the technologies that we invest in those early stage companies are critical. And as an investor that makes for a fantastic area to invest early. Those companies use our capital to then hopefully grow and expand both their technology as well as their footprint globally and creates hopefully for us some very attractive returns. That’s from an investor standpoint. From a greater societal and cyber security ecosystem standpoint, early stage startups are critical. They’re really the engine for innovation in the whole space. Large companies, governments can’t and won’t do everything that’s needed to innovate and to create next generation technologies. Cyber security is very dynamic. It’s continually changing and it needs new technologies that adapt to those changes and address the issues. And startups are a key to doing that.

Moderator – Nisha Pillai:
So we’ve just heard from Ken Plantamonte and also from Juliet Wilcox how important it is to have those early stage small companies because they are the engines for innovation. But yet I wonder how easy is it for them to survive? What is the space for them? And I’d like to put that question to you, Peter Sund, if I may. I’ve been puzzling about this. Of course, cyber threats are increasing and therefore there’s a room and a demand for innovation. But at the same time, is there space for startups? Or is it being dominated by the really big, the behemoths, the giants?

Peter Sund:
Well, indeed, the dominance is rather evident also for the big players. That is certainly true. But it’s also necessary because cyber security in terms of looking at the sort of customer base and organizations who essentially virtually everyone needs cyber security products and services, so a lot of it is like mass commodities, one could say. But on the other hand, like we just heard, the fact is that the innovation part and sort of finding the gaps, what exists in the market, that is quite often done actually by the smaller actors and startups because they are much more agile and there is always some kind of new thinking involved there that something is missing, that there is a gap, there is an opportunity, and hence the kind of, I would even say, the agility that comes along with startups. It’s kind of in the DNA of being small.

Moderator – Nisha Pillai:
Indeed, indeed. So they’re both of the same thing, really. The small companies are finding those gaps, finding the opportunities and coming up with the creative thinking. And so I’m sorry to be a slightly pessimistic voice here, but Shoaib Yusuf, may I ask you, why is it that investments in startups this year, cyber security startups in particular, I mean, has plummeted? And is that something we should be worried about then?

Shoaib Yousuf:
Thank you, Nisha, for such a kind of important question which is on the top of pretty much every entrepreneur. They have been like trying to kind of understand, is this the right time to kind of launch their startups? But before I answer this question, I would like to take this opportunity to also thank GCF Institute for uniting the brightest minds in the cyber security industry to discuss such important topics. Now look, when it comes to kind of like the timing of the startup, it is not only cyber security which is actually in the challenging time. We have a global economical stress, and because of that, many of the investors are very reluctant in terms of where to invest, and is this the right time to invest? So I don’t think so that cyber security as a topic, as an industry, is at the risk of that. So it will come back. Now, if I look at the history, we had 36 unicorns in cyber security as compared to six in 2021. So I’m fully optimistic that cyber security industry is there and gonna thrive, and there is a huge potential, and I will see that it will come back. So I would not be too worried that it is 23 because of the investors are not investing in cyber security, which should be discouraging for our entrepreneurs. I think there are opportunities if your startup is tackling the right set of challenges, there are opportunities to get the capital. So I think the market is looking quite promising, and I’m sure that in the coming months, and hopefully by 24, 25, we will see much better outlook.

Moderator – Nisha Pillai:
Okay, thank you very much, Shoaib. Juliette Wilcox, so you and your team, your department works closely with cyber security providers, big and small. From your perspective, what do you see as the particular challenges that face small companies?

Juliette WilCox CMG:
So I think my particular team is obviously looking to help companies to export their products, but that’s quite a tricky thing for very small companies. The first thing at that stage is they’re often not completely clear what their business plan is, so they know they’ve got a great product. They may have a lot of technical brain power behind it, but they haven’t necessarily developed either the business plan or the ability to communicate that. So there’s a thing about having the right people and employing the right people to support your growth at the right time. The second thing is finding your pathway to a customer, and when you’re very small and you’re a startup, you don’t have customers. So who’s your first one, and who is the customer that is your reference customer that you can talk to and talk about to others as well, and particularly if you’re trying to sell into government, you need to have probably sold into government before another government will buy from you, because that’s that sense of, I don’t know if it works, and I’m not sure who I can see who is a bit like me as a potential buyer. And then I think the third thing is how do you have a plan to scale and to know what you’re going to do next? You might have a product that is innovative, but as soon as other people see that, there’ll be a rush to copy. So what is your next plan, and how can you make sure that you can quickly scale up to the size that your potential customers need? So that understanding of that sort of business life ahead of you, and that’s something that I think people need to think about perhaps earlier than they do. There are ways of helping them. And the other alternative, of course, is some of them start up in the hope of being bought by somebody bigger. So again, are you really clear about where you want to take the culture and the journey of your startup, what your future looks like, who your customers are likely to be, and how you’re going to explain yourself to them in order to make sure that they can understand your product and then fit it into their cupboard of cybersecurity products?

Moderator – Nisha Pillai:
So it sounds to me like you’re saying that many startups have very good ideas, they’ve developed the technology, but they don’t necessarily know how to market it, how to turn it into something that is a viable business and bring in revenues.

Juliette WilCox CMG:
I think that’s right, and that’s where I think they can get support. And certainly in the UK, we provide quite a bit of support through various schemes run by the NCSC or through our Cyber Runway program or through our clusters program. So you can get mentoring advice, and it’s being willing to step into that ecosystem of support and making sure that you don’t necessarily think you know it all because you are the masters of the technology, but recognize there is actually a sensible business development process to go through, even if you’re attracting a great deal of venture capital money potentially, that’s not the end of it for you. You have to think that through logically. Excellent.

Moderator – Nisha Pillai:
So let’s get an investment perspective on this now. Ken Pentamonte, how can cybersecurity startups make themselves more attractive to investors?

Kenneth Pentimonti:
That’s a great question, and it’s one that we deal with every day, looking at dozens of companies every week. What I would say, first off, cybersecurity is, while a very, very attractive space and one where we believe is a huge and growing area to invest, it has attracted lots of companies. And as a result, many of these companies often become very difficult to differentiate between. They look on the surface like they’re doing very similar things for businesses. So I think one of the first things right off is for startups to understand and very clearly communicate what they’re doing different. How they differentiate, usually, and ideally, it’s from a technology standpoint, and there’s a barrier to entry that they’ve developed. And so to understand that, understand their competitive landscape, and to be able to communicate that differentiation clearly, I think is one very, very important piece. Also to be very clear as to what specific part of the market that they’re trying to go after. Cybersecurity is a very broad space. Securing digital infrastructure can be across a number of areas, networks and data, and across cloud, across different communication channels. So very important for the company to understand its market, be able to define that size and the scale of that market, and do that in a way that’s concise and clear. And then I would say, lastly, the companies have to have a very clear knowledge of what they want to use the capital for. Our capital is expensive. We expect very good things from the companies that take our money, and what they have to do is understand what specifically are they going to do with the money, and how are they going to generate a return for that money. And that’s usually in terms of developing additional capabilities with the technology, as well as further building out their sales marketing efforts and growing globally. And so I think those are the key things that we look for when we look to put capital to work.

Moderator – Nisha Pillai:
Indeed. And capital is even more expensive right now, and that might indeed be why the investment in startups has been on the lower side this year. Thank you very much, Ken. So we’ve been hearing about AI, haven’t we? And the threats, cyber threats, posed by the burgeoning AI field right through the last couple of days. But what will the impact of AI have on cybersecurity startups themselves? That’s what I’d like to ask and get different perspectives from both Peter Sund and Shoaib Yusuf. So can I start with you, if you don’t mind, Peter? How will the continued growth, the AI everywhere world that we’re in now, affect cyber startups? Will they require even more?

Peter Sund:
capital? Well, thank you for a great question. Firstly, I am not convinced yet that AI is everywhere. I think AI is very high on the hype curve. That’s where it’s the biggest, I think. But of course, machine learning and automation and other things have existed in the industrial environment for a very long time. It just seems that the sort of public awareness and public access to certain type of AI systems is now creating this, a little bit of this hype. They are excellent. That, of course, is also a fact. So I think one aspect is clearly so that for smaller actors, these sort of general large language model-based AI systems and others, they can really help actually in the sort of general management issues of companies. They can increase productivity and so on and so on. But then the other side is, of course, the responsible use of AI. And as we know, there is very difficult to find technologies that would have not been misused. So it’s quite certain that AI will be misused as well. And it is already being misused. That is certainly true. And that’s also an opportunity for cyber security startups, isn’t it? Yeah, that is an opportunity. And maybe if I sort of take the other side of this, is that it’s highly likely that there will be a necessity for AI to sort of counter the bad AI. So it’s AI against AI, most likely in the cyber security field, in, let’s say, at least in midterm, I would say. Maybe not short-term yet,

Moderator – Nisha Pillai:
but midterm. Excellent, thank you. And Shoaib Yusuf, what’s your view on this? What’s the impact of the increasing penetration of AI into our lives going to be on the startup sector, cyber security startups? Thank you so much,

Shoaib Yousuf:
Nisha, for a fantastic question. Just building on of my fellow panelists, Peter, I have a slightly different view. I personally believe that AI is indeed everywhere. It is impacting pretty much all sort of industries. It is impacting how we actually look at things, how we actually perceive things. The sooner or better we identify that it also comes with a lot of opportunities for us, I will see those kind of industries, startups, and companies as the leaders. And the companies who are not able to kind of embrace AI and fully understand the opportunities it brings to the particular industry, I personally feel they will be more likely laggards. However, I see AI into two kind of categories. One is AI-centric products and AI-infused products. So AI-centric products are the perfect example of JetGPTs barred by Google. These are AI products. In these kind of things, which has given a phenomenal growth and a broader understanding of the potential of AI, what AI can do. However, AI- infused products, if you look at all kind of products out there, especially coming from the tech leaders, from Oracle to Salesforce to kind of Microsoft, everyone have started to infuse AI into their products. I personally believe this is not a choice. It’s must. All of our cybersecurity products eventually has to infuse AI to ensure that we fully unlock the potential of a lot of capabilities. If we won’t do it, we will be repeating the same mistakes because the AI tool as a tool is already available to all the bad guys out there. We need to infuse AI into our products. It will give us a scalability. It will give us operational efficiency. It will unlock the potential for us to generate new kind of insights, which we are not capable of fully able to deliver on.

Moderator – Nisha Pillai:
And is that a challenge or an opportunity for startups? It’s not clear to me listening.

Shoaib Yousuf:
It’s absolutely an opportunity. It’s absolutely an opportunity. However, the challenge is the scalability and the cost and the investment which is required. But if you look at 20 years ago, the cost of tech was quite high. And eventually, in the coming years, we will see with the hyperscalers investing where you see a lot of tech investments going on. Eventually, the GPU as a service over the cloud will become quite affordable for all the startup ecosystem to fully embrace and start innovating their products over that.

Moderator – Nisha Pillai:
I see you nodding your head there, Ken Pentamonte.

Kenneth Pentimonti:
Yeah, I would very much agree. I think there’s a huge opportunity that AI provides. I kind of look at three different opportunities within cybersecurity. One is just what was mentioned, leveraging AI to make the products, the services better, infusing that within many of our companies have already started a path toward leveraging AI in their products to make them faster, to make them easier to use, to make them more effective. Fantastic opportunity. Secondly, is leveraging AI to enhance what are very complex, huge data sets within the industry, especially as looking at threats and various different external attacks on networks. There’s a huge amount of data that needs to be sorted through and figured out in very quick time. AI is an incredible tool to better do that. I think lastly, AI itself. So the AI-based models, large organizations, governments are going to continue to use AI for various different purposes, non-cyber related purposes. But those AI models and the data that goes into those AI models needs to be secure. So that’s going to open up a whole new realm of cybersecurity technologies that secure those models and secure that data.

Moderator – Nisha Pillai:
A whole new specific application for it. So clearly there is national interest in having a burgeoning cybersecurity ecosystem of small and large companies. What role does government play then in supporting the smaller companies that may not really have got going yet and not standing on their feet independently? I’d like to start with a government perspective and ask the UK cybersecurity ambassador, what have you seen to be the most effective ways in supporting and directing and targeting support to small startups?

Juliette WilCox CMG:
Thank you. Well, we do have actually at least two direct and specific schemes that are pointed at helping startups work out what their ideas are, how they develop into something that’s a saleable product, how do they get mentored into creating a company that works, where do they find their potential customers, how do they face the idea of growing their financial capacity. And so we do that through, I mean, our NCSC actually specifically backs a program for startups. It gathers together people who, startups that are interested in solving very specific problems that governments have identified and then it will help them to grow into viable companies that can then become the sort of vehicle through which we solve some of our future problems. And that allows them to have those opportunities to meet in the UK and overseas partners, mentors and access to finance. We also do a scheme which we call a sort of cyber runway which is actually taking companies at all stages, which is so startups are absolutely there but there may be companies who are developing in other ways. Again, it provides them those opportunities to find access to markets they may be unsure of, how to get there, of mentorship and of managing money and developing business plans. But we know that without that it’s quite difficult. People are swimming around, not really being quite sure how to connect the dots. So being very, very specific about what your country is looking at in terms of its problem sets and then where you can intervene as a government to help with partners and they’re all with our industry partners that do this. It isn’t government that delivers this. That allows you to then have that network that’s built into the programme and allows them to sort of expand and find opportunities to develop and sometimes to fail. It helps them also to explore areas where they’re not going to be successful, places where they don’t think they want to develop, where they’re not good enough and need to employ different kinds of people in their company. So testing that through a sort of safe space of mentoring, I think, is incredibly important. It’s as useful as anything. Thank you, Juliette.

Moderator – Nisha Pillai:
So Piisatoin, you run the Finnish information security cluster. How do you see the role of government in supporting the smaller companies? Well, definitely.

Peter Sund:
For instance, those kinds of programmes and approaches that were just mentioned, as for example for UK, but there is also kind of the other side that sort of government instruments and support not leading to a situation where the government picks out the winners, the winning horses, so to say, that we have to be also careful on that because the market has to sort of live on the competition and so on. But the fact is that the smaller actors, they do need support because, especially when we talk about really novel sort of innovations and novel approaches, quite often these sort of key persons in these companies, they are not business specialists. They don’t have the networks, they don’t know exactly how to run businesses, they don’t know how to acquire funding and how to test and validate early enough of their sort of portfolio or the innovative idea, and hence we need all these multitude of supporting actors. That absolutely is correct in the sense, but I think more over, I think, for example, for Finland as our internal market is smaller than many others, quite often we wish to focus on the sort of international trade side. Indeed, it’s a necessity, isn’t it?

Moderator – Nisha Pillai:
Thank you, Peter. Shoab, over there, hello. I want to ask you about public-private partnerships at this point of the discussion. What’s the record like? Have they been effective? Have they delivered?

Shoaib Yousuf:
Nisha, this is a fantastic question and I think it all depends on quite a few variables that how you view public-private partnership. It depends on the economics and the national kind of, you know, how big is the market, what is the maturity of a particular country, how fragmented, how much kind of cybersecurity players are already there, how much is the demand. So there are quite a few variables which play a role in terms of public and private partnership. I personally believe that the countries who are quite behind in terms of their cybersecurity capacity to deliver on their supply needs, the government has to play a pivotal role in orchestrating the industry. They have to kind of play a role in bringing the private sector together. They have to kind of stimulate public-private partnership because doing that, it allows a lot of simulation in R&D. It allows a lot of incentivized, you know, programs for the private sector to look at cybersecurity differently. And most importantly, it also allows entrepreneurships to kind of like, you know, not only launch their startups and bring their innovative ideas forward, but it also have the government who is providing the support, much needed support for the technology transfers, for patenting, and many of these things are quite expensive. And public-private partnership plays a pivotal role in terms of stimulating that growth. So my short answer, Nisha, is it depends on the maturity of the country. It depends on what is this, you know, phase and what is the vision that countries see. Is the country really sees cybersecurity as one of their strategic priority? And if they see a lot of demand, government has to play a role and public-private partnership is the way to go.

Moderator – Nisha Pillai:
Thank you very much, Shoaib. So shall we end on a positive note, Excellencies, Ladies and Gentlemen? I’d like to ask Ken Pentamonte, can you share some positive examples of some success stories in this field with us?

Kenneth Pentimonti:
Yeah, sure. I think there are a whole bunch of great success stories. It was mentioned how many unicorns there are now in the cybersecurity sector. It’s great to see that the sector has really grown over the last handful of years and I think will continue to be a significant sector within the broader tech investing sector. I think there’s some really interesting ones. We talked about public- private partnerships. There’s an entity called In-Q-Tel in the United States that’s done a really good job of identifying innovative technologies that are now being used in the U.S. government. Juliet mentioned a number of programs that the U.K. government is sponsoring that have been fantastic. We’ve invested in a few of those companies coming out of those programs. Very, very helpful to get those companies up and going. We’re involved in a program in France called the Campus Cyber that’s a public-private partnership between the French government and various corporate sponsors. We’re involved in that. We’re a mentor and we get involved early stage, earlier than we would typically invest in companies, but we try to help them scale and get to a stage where they would be ready for our capital and in fact we’re in process of hopefully making an investment in the first company coming out of that program. So lots of great success stories. I think there’s huge opportunity for governments and corporate organizations to get together to help facilitate. It is very difficult for very early stage companies to get that initial funding, prove their products, and then be attractive to venture capitalists at a

Moderator – Nisha Pillai:
little bit later stage. On that note, we shall draw our conversation to a close. I’ve learned a huge amount from our discussion. Some of the struggles that small startups face, the ways in which government can help and why it’s so important, and what the national economic and defense payoff and benefits are for us all. Shall we join our hands to say thank you to our eminent speakers, Ken Pantuonti, Shoaib Yusuf, Her Excellency Juliet Wilcox, and Peter Thurmond. Thank you for joining us.

Speakers

Juliette WilCox CMG

Speech speed

203 words per minute

Speech length

1209 words

Speech time

357 secs

Kenneth Pentimonti

Speech speed

146 words per minute

Speech length

1121 words

Speech time

461 secs

Moderator – Nisha Pillai

Speech speed

159 words per minute

Speech length

1182 words

Speech time

446 secs

Peter Sund

Speech speed

132 words per minute

Speech length

672 words

Speech time

306 secs

Shoaib Yousuf

Speech speed

167 words per minute

Speech length

1057 words

Speech time

380 secs

Behavior Unmasked: The Effects of Anonymity on Online Activity

Table of contents

Disclaimer: It should be noted that the reporting, analysis and chatbot answers are generated automatically by DiploGPT from the official UN transcripts and, in case of just-in-time reporting, the audiovisual recordings on UN Web TV. The accuracy and completeness of the resources and results can therefore not be guaranteed.

Knowledge Graph of Debate

Session report

Full session report

Will Ripley

**Will Ripley**, a renowned speaker and expert in cyber psychology, is scheduled to participate in a highly anticipated discussion on the subject. One of the main objectives of Ripley’s participation is to understand the unique aspects of cyber psychology and how people’s interaction with digital devices affects it.

Ripley points out the negative consequences of excessive phone use and highlights the addictive nature of smartphones, particularly due to the release of dopamine. He personally spends around six to eight hours on his phone, which exemplifies the pervasive influence of digital devices in our lives. To mitigate these issues, Ripley advocates for reducing screen time as a means to improve both mental and physical health.

Another significant aspect of the discussion revolves around the concept of online anonymity. Ripley questions the practicality of achieving absolute online anonymity as he argues that a fake profile could ultimately be traced back to the user’s IP address. He also highlights the use of virtual private networks (VPNs) in the context of online anonymity, further emphasizing the challenges in maintaining complete anonymity in the digital realm.

Furthermore, Ripley acknowledges the broad definition of cybercrime. He believes that minor actions could potentially fall under this definition, and he questions the subjective nature of the term. This perspective highlights the need for a more nuanced understanding and approach to defining and addressing cybercrime.

Digital piracy and its impact on societal norms and values are also discussed by Ripley. He points out that many individuals unknowingly commit digital piracy by downloading and sharing multimedia content without proper payment. This prevalent behavior is seen as a significant concern that needs to be adequately addressed.

Ripley also brings attention to the middle ground in online behavior, where concepts such as freedom of speech and anonymity reside. He argues that this gray area needs careful consideration as it is often the source of disagreements and controversies. Finding the balance between allowing freedom of expression and regulating harmful content is a complex challenge in the digital age.

Artificial intelligence (AI) is another topic of interest in the discussion. Ripley suggests that the potential risks associated with AI are being considered, as evidenced by the UK hosting an AI summit. However, he also notes the difficulty in achieving consensus on global regulation due to geopolitical tensions and conflicting national interests.

The burden of monitoring and regulating online content is placed on social media companies, which Ripley questions the fairness of. He argues that these companies are not only expected to act as providers of platforms but also as virtual policemen and traffic cops. The responsibility placed on these companies raises concerns about the regulation of online content and the potential for censorship.

The discussion also addresses the importance of online safety technologies, or safety tech, in protecting individuals’ well-being in the digital world. Cybersecurity is recognized as a means to protect data, systems, networks, and devices, but the focus on human online safety is often overlooked. Ripley points out the growing sectors of safety tech in the UK, Europe, and the US, highlighting the increasing recognition of the significance of protecting individuals online.

In conclusion, the discussion involving Will Ripley highlights various pressing issues related to cyber psychology, excessive phone use, online anonymity, cybercrime, digital piracy, online behavior, AI risks, social media content regulation, and the importance of online safety technologies. Ripley’s insights shed light on the complexities involved in navigating the digital landscape and the need for a balanced and well-regulated approach to ensure a safer and more ethical online environment.

Prof. Mary Aiken

The analysis explores various arguments and stances on the topic of cyber psychology and online behavior. Professor Mary Aiken sees cyber psychology as the future and believes it is crucial in understanding the impact of technology on human behavior. Despite her conviction, she encounters skepticism from those who dismiss cyber psychology as ‘cyber hocus-pocus’. This highlights the challenges faced in introducing a relatively new field of study to the academic community.

The study of cyber psychology delves into various aspects of online behavior. One such aspect is the time loss effect, where engaging in online activities can result in an unintended loss of time. For example, checking emails for a few minutes can quickly turn into hours spent online. This phenomenon raises concerns about productivity and time management in the digital age.

Another significant area of study within cyber psychology is the concept of online disinhibition, which refers to the tendency for individuals to exhibit different behaviors online compared to in-person interactions. The perceived anonymity and sense of detachment in online environments can lead to a loss of inhibitions, allowing people to engage in actions they may not typically do in the offline world.

Related to online disinhibition is the issue of online anonymity. Unlike in the real world, the internet allows individuals to remain anonymous, which can lead to more extreme behavioral changes. While some argue that online anonymity offers freedom of expression, others note the potential for negative consequences such as cybercrime and cyberbullying.

The influence of online platforms on individual behavior is also explored. People tend to conceptualize themselves differently in online spaces, where they seek validation through likes, comments, and engagement. This can lead to significant changes in behavior as individuals adapt to the online environment. Professor Aiken strongly believes in the significant influence of online platforms on individual behavior, emphasizing the need to understand and manage this impact.

Attention retention in the online world is another crucial aspect discussed in the analysis. Devices and online platforms are designed to capture users’ attention, creating an attention economy that rewards systems for captivating users for longer durations. This has implications for mental health and well-being, as individuals may become addicted to online engagement and struggle to disconnect from the digital world.

The analysis also highlights the socio-political aspects of cyberspace, focusing on the need for regulations and responsible behavior. Anonymity on the internet is questioned, with some arguing that it should not be considered a fundamental right but rather a privilege that comes with responsibility. The potential for harm in cyberspace, including cybercrimes like cyberbullying, harassment, and money laundering, prompts discussions on how to protect vulnerable individuals, particularly children, and establish regulations to hold social media companies accountable for the content on their platforms.

In conclusion, the analysis presents a multifaceted exploration of cyber psychology and online behavior. It acknowledges both the potential benefits and risks associated with increasing reliance on technology and online platforms. A better understanding of cyber psychology can help mitigate the negative consequences of online behavior and ensure a safer, more ethical digital landscape. However, it is clear that further research, regulations, and education are needed to address the complexities and challenges posed by cyberspace.

Audience

The analysis explores various topics, beginning with the effects of violent video games on behavior. One speaker takes an inquiring stance, seeking to understand the factors that influence the behavior of individuals exposed to violent video games. This suggests a neutral sentiment towards the topic. The speaker mentions engaging with the professor’s material on YouTube and recognizing the interconnectedness of the real world and cyberspace. The main argument is to gain a comprehensive understanding of how violent video games impact behavior.

The analysis also discusses the global regulation of AI, the digital economy, and social media markets. Ongoing initiatives to globalize regulation are mentioned, indicating a neutral sentiment. However, another speaker takes a positive stance, emphasizing the importance and benefits of globalizing regulation in these areas. Unfortunately, there are no supporting facts provided for this argument. Nonetheless, the main point is to advocate for globalized regulation to ensure fair and effective governance in AI, the digital economy, and social media.

In addition, the creation of a safer internet is addressed. A scientist speaker is actively working towards this goal, with a positive sentiment. However, specific details or evidence regarding the scientist’s methods or initiatives are not mentioned. Nevertheless, the argument is clear: advocating for a safer online environment.

The analysis also explores using data from online trolls for research, with a neutral sentiment. A speaker mentions the abundance of data provided by trolling and their utilization of it for research. However, specific details about the research or the insights derived from the data are not provided.

Lastly, a speaker holds a strong and confident stance against online trolls, encouraging their ongoing activity as it provides valuable data. This suggests a positive sentiment towards the speaker’s approach, considering the benefits derived from gathering troll data. The related topics discussed include internet safety and online abuse, aligning with SDG 5 for Gender Equality and SDG 16 for Peace, Justice, and Strong Institutions.

Overall, the analysis covers a wide range of topics and perspectives. It provides insights into the impacts of violent video games, the importance of globalized regulation, efforts towards creating a safer internet, and utilizing data from online trolls for research purposes. However, some arguments lack specific supporting evidence, limiting the depth of analysis in certain areas.

Session transcript

Will Ripley:
Capital Technology University. I’m actually… Ooh, hang on. Got a round of applause. That’s impressive. She hasn’t said a word and she’s got a round of applause. I’m fascinated by this. Really fascinated, because I’ve done many discussions, but I’ve never done one on cyber psychology. And as you were saying to me earlier, cyber psychology used to be known as cyber hocus-pocus.

Prof. Mary Aiken:
Well, I first came across the internet and technology back in the 90s and in the form of a chatbot and I was captivated and I had just qualified in psychology and I thought, wow, this is going to change everything. So when I went rushing back to my professors of psychology, they said cyber hocus-pocus. But I actually thought this was the future of the internet and I went back and re-qualified, did a Masters of Science in Cyber Psychology, did a PhD in Forensic Cyber Psychology, which is the study of criminal, deviant and abnormal behaviour online and I’m kept pretty busy.

Will Ripley:
We’re going to get into much more detail on that. The panel is all about anonymity and we’ll get to it. But I think we have to set the parameters. And by the way, we’ll also take questions. So any of you who’ve got any questions, we’ll also take questions. Well, the professor will take questions. What is different about cyber psychology? What is it that happens online that is different? Or when we integrate with digital equipment, if you will. I’m trying to be as neutral as possible.

Prof. Mary Aiken:
Cyber psychology is the study of the impact of technology on human behaviour. And effectively, you know, this conference, the theme is all about cyberspace. So when you go on your phone, when you go online, what you’re doing is entering a powerful psychological environment. I mean, did you ever stop for five minutes before a taxi came to check your emails? And half an hour has gone just like that. So there’s a time loss effect. There’s infinity in terms of search. You see behaviours like online disinhibition taking place online. And then, of course, the theme of this talk, you have the potential to be anonymous online, which you don’t have in the real world.

Will Ripley:
Okay, so at what point does our behaviour change? What is the catalyst for the change?

Prof. Mary Aiken:
I think the catalyst for change is the moment that you enter into that environment. You know, the moment that you take a photo and you post it on TikTok or LinkedIn or Meta or wherever, and you begin to sort of conceptualise yourself in this environment where you want likes and you want comments and you’re in cyberspace and you’re thinking about your persona in that environment.

Will Ripley:
I’ve just read the book about how to break up with your phone, which is an incredible read about… Quick question. How many hours a day do you think you spend on your phone? How many? Five? Seven? Eight? Any increase on eight? Yes, sir. How many? You. I… If I’m not working actually a lot on air and I’m having to use my phone for my earpiece, it’s about six to eight. That’s horrific. But it’s this idea of the whole phone is designed to capture us for the dopamine effect. The app is designed for reward and these sort of things. So that in itself shows the significance of psychology.

Prof. Mary Aiken:
Absolutely. I mean, these devices are designed to capture our attention. But more than that, when you go online and you’re on social media, you also have what’s called the attention economy. So the more that a content can pull you in, get your attention, people are monetizing that attention and profiting from your attention.

Will Ripley:
This brings us to the idea of how our behavior changes. The disinhibition… I can’t say the word. Disinhibition.

Prof. Mary Aiken:
Disinhibition.

Will Ripley:
In other words, no one can tell what I’m up to. By the way, who’s got a phone in here? Who’s got a phone? Could you just hold it up for me so I can make sure you have got a phone? I want everybody to hold their phone up. Sir, you’ve got a phone. Hold it up. There we go. Now, I want you to take your phone, and I want you to do a swipe from the top right down. And then I want you to put it into airplane mode. All right? I would like everybody in airplane mode while we continue talking. This behavioral change. Describe it.

Prof. Mary Aiken:
So, as I say, you have effects. Online disinhibition dictates that people will do things online that they would not do in the real world. So, you’re more disinhibited. As I say, just likely your behavior changes and mutates. Now, that’s just pure disinhibition when you’re a known entity online. But then you’ve got a much bigger step when people become anonymous. And that’s where behavior can really change. So, anonymity is often confused or conflated with privacy. Anonymity is where you have no details, where you’re an unknown entity. Privacy is where you’re known, but you’ve got the right to control your data. So, anonymity is a superhuman power of invisibility, like a superhero. And that power comes with incredible responsibility to use it properly. So, how would you be anonymous? You could create a fake profile under a different name. That’s a form of anonymity. You can use a VPN. That’s a form of anonymity. And at an extreme level, you can also use Tor to go to the darker parts of the Internet. And that’s anonymity.

Will Ripley:
This has been around pretty much since the Internet began. I want to show you. I’m only going to show one side. Have a look at this slide, which became… If you could bring it up, there we go. This was one of the most… You’ll be well familiar with this. On the Internet, nobody knows you’re a dog. That was back in the 80s, 90s. And it was, if you like, the first manifestation of anonymity.

Prof. Mary Aiken:
And I would paraphrase that and say, on the Internet now, nobody knows if you’re a person or not. Not just a dog, because we’ve got so many bots. Yeah, I think that the debate about anonymity is people say, Well, I have a right to be anonymous online. And the point about anonymity is it is a 20-year-old invention of the Internet. It is not a human right. It is an invention. And therefore, it needs to be questioned. Of course, anonymity can allow you to express yourself in a way that you couldn’t in a real-world context. It can allow you to explore areas that you might not do if you were a known entity. It can allow freedom of expression where you might be oppressed or in an oppressed minority. But if the cost of that is rampant cyberbullying, harassment, sextortion, cybercrime, cyberfraud, then the cost is too great for the Internet.

Will Ripley:
Okay, but when you say anonymity, and it’s not a philosophical question, it’s a practical one. Is it possible to be anonymous? If I create a fake profile, it will eventually work its way back to my IP address. If I use a VPN, I mean, is there such a thing as true or absolute anonymity online?

Prof. Mary Aiken:
Yes, if you use something like Tor, the Onion Router.

Will Ripley:
So let’s assume that that’s really for a very small…

Prof. Mary Aiken:
Anybody can use it.

Will Ripley:
Right, but for the people in this room who will just create a fake Gmail or a fake this, that or the other, they’re creating an anonymity as a front piece, in a sense, aren’t they? As a mask.

Prof. Mary Aiken:
Yes.

Will Ripley:
How risky is that, do you think, in terms of the…

Prof. Mary Aiken:
Well, it’s not risky for an adult to decide, I want a fake profile. That’s something that you’re free to do as an adult. Where the risk sets in, in two ways, is one, when you see children and young people creating these fake profiles, because then it removes a sense of responsibility, and they can really get themselves into trouble. So we’ve just finished a very large European study of 8,000 young people aged 16 to 19, and we found that the vast majority of those young people had up to five different profiles on one platform.

Will Ripley:
Really?

Prof. Mary Aiken:
Yeah. So what they were doing is they had their profile that their family can see, then they have another profile for their friends, then they have another profile for a smaller group. So they’re managing all these personas in cyberspace, which is sort of exhausting. But in addition to that, especially if it’s a young child, parents may have no visibility of what they’re doing. So it’s the duty of the parent to protect the child in the real world. It’s also the duty of the parent to protect children in cyberspace. And what we’ve seen in the UK, we’ve seen the introduction of the Online Safety Act, which is for the first time a very broad measure that’s going to seek to protect children in cyber context, among other things. And one of the things they’re going to crack down on is the multiplicity of fake profiles, particularly when these profiles are used to harass people, are used for hate speech, are used to extort from people. So they’re going to look for serial offenders and shut it down.

Will Ripley:
There is an argument that will say that the younger generation who have been born and brought up with this are better at managing it. Now, I’m not talking in terms of the nefarious or the dangerous, but I’m just talking about this idea of having multiple personalities online. I might find it difficult to cope with five profiles, but somebody who is 16 and knows no different will just be part of their meat and veg.

Prof. Mary Aiken:
It doesn’t mean it’s good developmentally, because the point is that when you’re young, one of the things that you have to learn, and this is what we all went through growing up, is that there are consequences for your actions. And a young person who creates a fake profile, who maybe engages in harassing somebody or bullying somebody, or worse, extorting from another person, they may not, at 13 or 14 or 15, be fully aware of the consequences of that behavior. And therefore, it’s our duty as a society to protect them from getting into trouble. Let me take it a step further in terms of cybercrime. So you can have pathways into behavior. You can start with cyberbullying, you can amplify to harassment, and then you can get engaged in true criminal behavior. And harassment and cyberbullying is illegal in some jurisdictions. But let’s talk about things like hate speech, which is a crime, or cyberfraud, which is a crime, or identity theft, which is a crime. There’s a very thin line between the acceleration of these behaviors.

Will Ripley:
Are you suggesting the slippery slope argument?

Prof. Mary Aiken:
I’m not suggesting, I’m saying that the scientific evidence in the studies, the most recent study that I’ve been involved in, which is an EU study, 8,000 young people, we found a significant correlation between covert, undercover profiles that young people were using, and engagement in cybercrime. And in fact, of the sample of the 8,000 16 to 19-year-olds in all of Europe and the UK that we looked at, almost 50% admitted to engaging in a cybercrime. Hold that. How many people in this room will admit now to engaging in a cybercrime of one sort or another? That is entrapment. You don’t have to put up your hands.

Will Ripley:
How many people? Well, I’ll put my hand up. How many other people will admit to have engaged in some form of cybercrime? Yeah, yeah, yeah. Because you know where I’m going with this. Because the definition of cybercrime could be taken really quite low-content. And this is the slippery slope argument. It starts where?

Prof. Mary Aiken:
Well, things like digital piracy.

Will Ripley:
So now how many people have shared a piece of music or a video or downloaded something without paying for it? You’re all criminals. But the point, this is a valid issue, isn’t it?

Prof. Mary Aiken:
Okay, so the point is that if you have a generation that have grown up stealing music, stealing videos, stealing software, then the moral compass between that and then suddenly getting access to somebody’s credit card that they could use quickly just to buy something that they need, that’s a very thin line. And the point is that there’s also a perception that it’s a victimless crime. Well, the record companies can afford it, the movie companies can afford it, the bank will pay for the credit card. And the problem with that is, is you begin to see this societal shift. And while 50% engaged in a cybercrime, and you could say digital piracy is a big number, I think it was one in three, actual very serious crimes like hacking, like sextortion, cyberfraud, that was one in eight. They’re big numbers. One in 11 in our study admitted to engaging in money mulling, which is money laundering. Now, the point about it is, how cognizant or how aware would a young person be that they were laundering money? Imagine they click on an ad on the internet, and the ad says, would you like a part-time job in a logistics company? Fantastic. So, you answer the ad, and they ask you for your bank detail. So, you give them your bank details. And then they send you $1,000, and they say, all you’ve got to do is take $800 and send it to four different accounts, and we’ll send you the numbers, and you keep $200. And if you do that, the next time, $10,000 will come.

Will Ripley:
Does that happen?

Prof. Mary Aiken:
All the time. This is money laundering.

Will Ripley:
Why is it always people writing to me asking me to give them money, and never actually? Really?

Prof. Mary Aiken:
But the point is, that’s a crime. And the cyber criminals will use a young person, use their bank account, do a couple of test runs, and then put a large amount of money through. The young person then splits up the money, and the next thing, knock on the door, it’s the police, you get arrested for money laundering. This is a huge problem.

Will Ripley:
The ability to deal with it, because starting, as you like, with the digital piracy and all of that, what you’re saying, which is particularly fascinating, is that this is a shift in norms. This is a shift in values. You might not go to the grocery shop and steal sweets, but eventually, you’re moving into…

Prof. Mary Aiken:
So, we’ve interviewed young people in research, and we’ve said, would you walk into a record shop in a shopping center? Would you walk up to the shelf, and would you steal a CD, put it in your bag, and walk out? And they say, no, absolutely not. But will they do it online? Yes. And that’s the difference. But ultimately, there is a symbiotic relationship between cyberspace, what happens online, and the real world. What happens in cyberspace impacts on the real world. What happens in the real world impacts on cyberspace. So the point is, if we want young people to grow up and participate as good citizens in a collective society, our children are growing up online. They are learning things that are not culturally appropriate, that are not acceptable in civilized society, and that are detrimental to the social good.

Will Ripley:
The problem with your view, as some would suggest, respectfully, is we can all agree at this end, sex trafficking, sex torture, bullying, that’s wrong. And we can all agree that a bit of this, that, and the other is fine. It’s the bit in the middle, it’s the gray bit, where somebody says, and never mind so much with children, but just with anybody online, no, hang on, it’s freedom of speech. If I want to be anonymous, it’s my right, or at least I’m entitled to be. If I want to do this and say that, it’s my right.

Prof. Mary Aiken:
Okay. So I would love to be anonymous when I’m traveling. I would love when I go to an airport not to produce a passport. I would love not to have a photograph taken. I’d love not to give my fingerprints every time I’m moving around the world. But I don’t get the right to be anonymous when I’m traveling. Why? Because it’s for our collective security. Now transpose that argument to cyberspace, when you are a known entity, anonymous beginning with N as opposed to anonymous beginning with A, then that’s what helps to create a robust, thriving, equitable, fair, civil society.

Will Ripley:
So how do you force non-anonymity?

Prof. Mary Aiken:
I think that what we have to do is question the fundamentals of the internet. And you know, the point is that I have these debates, I debated against the American Civil Liberties Union. They don’t agree with me, of course. And the point is that we have created this fantastic invention, this superhighway for connectivity, where we can learn, where we can play, where we connect, but we are ruining it for ourselves because negative, toxic, hateful behavior is getting out of control. And cybercrime is getting out of control. The latest figures for cybercrime estimates it at a cost of 8 trillion to economies. If cybercrime was a country, it would have the third largest GDP in the world.

Will Ripley:
We’re actually heading in the wrong direction in a sense, because let’s take Bitcoin, which is the whole premise is anonymity. The whole idea is that the transaction can’t be traced.

Prof. Mary Aiken:
And it’s the go-to currency for criminals. So the point is, we adopt each new emerging technology with the collective wisdom of lemmings leaping off a cliff. Just because it is new does not mean it is good. And technology will only mean progress when we can mitigate its harmful effects. And that’s what’s missing. It’s this cyber utopian view. AI is fantastic. HGPT is fantastic. And nobody is thinking about the downside. Nobody is thinking about what happens when this goes wrong. It’s like a form of cognition.

Will Ripley:
Well, we are with AI, to be fair. I mean, the UK has an AI summit.

Prof. Mary Aiken:
It’s a bit late.

Will Ripley:
And you suggest we can’t put the genie back in the bottle on this?

Prof. Mary Aiken:
No, not when it comes to AI. And with AI, then there’s a question about regulation of AI or not. But the whole point is that you have to achieve balance. There has to be some form of oversight. Just the same way as we have in the real world.

Will Ripley:
But we’re destined to get this completely wrong, bearing in mind each country wants to do their own thing. The geopolitical tensions mean that you’re not going to get everybody on the same page.

Prof. Mary Aiken:
I think that’s why it’s so important to talk about cyberspace. Because we have other shared spaces. So back in the day, when people were exploring the world, you had the oceans. That was a shared space. And we came up with rules and regulations for good practice. Then we invented planes. And then we had the shared space for air travel. And we came up with regulations for that. Then we have outer space. And we have governance there. And that’s why this conference is so important. Because it’s one of the… I travel worldwide. I speak at many conferences. And it’s one of the few conferences that puts an explicit focus on cyberspace. So my suggestion is, where could we start? We could start on the things that we agree with. We don’t want cybercrime. There’s no argument in favor of cybercrime. We don’t want child sexual abuse material on the internet. There’s no counterargument for that. So let’s start where we can agree in this shared space. And then let’s work back.

Will Ripley:
Let’s take a question. We’ve got a few minutes. Questions, anybody? For the good professor. We have… I don’t know whether we have microphones. But if you stand, sir, and show us… No speeches. Just questions, please.

Audience:
It’s good to see you, Margaret. I often see you on YouTube. So it’s really good to see you face to face. I have a question regarding, as you say, the real world and the cyberspace is connected to each other. It impacts the real world and the cyberspace. So my question is that, how can we understand the factors that influence the behavior of those who are exposed to violent video games? Right. So just give us the… How can we… How can you… You know, we can understand and do something that, you know, impact the behavior.

Prof. Mary Aiken:
Well, that’s the joy of the discipline of cyber psychology is cyber psychology can help to navigate our behavior in cyberspace, provide insights, provide explanatory value, and provide direction.

Will Ripley:
Give me an example of where you’ve actually found that to be the case. You’ve either said to a gaming company or to somebody, you’ve actually said, my research says, do this or don’t do this.

Prof. Mary Aiken:
At a policy level, for example, I worked closely with the government on the Online Safety Act. And that would be a really good example of everybody coming together and for the first time creating this spectrum of harm, cyber bullying, harassment, extortion, mis- and disinformation, very important. And then lots of debate and lots of processes to create legislation to address.

Will Ripley:
And then when you talk about misinformation and disinformation, you’re talking in many cases about state actors when it takes on a whole different area of complexity.

Prof. Mary Aiken:
Absolutely. But we’re collectively subjected to it.

Will Ripley:
Right.

Prof. Mary Aiken:
So you have state actors, but this is mediated by the social media companies who decide to…

Will Ripley:
Is that fair on the social media companies who find themselves in the position of not only being the providers, but having to be the policemen and the traffic cop?

Prof. Mary Aiken:
Those who profit in this space should be accountable in this space. And the thing about the UK legislation, it’s going to force a duty of care on the social media companies and force compliance and will fine them. And more importantly than fines, because they can afford to pay the fines, they will look at prosecuting senior executives who fail to comply.

Will Ripley:
I’ve got a question, but I want to see if anybody else has a question because this is fascinating. Anybody out there? In which case, I will… Oh, yes, ma’am. You’re going to have to shout. Yes. Yeah. Thank you for your… Sorry, I can’t speak up. Hello? Can you hear me? Yes, we can. Yeah. Okay.

Audience:
Thanks for your significant contribution in this very important aspect. Actually, from the exposure you have working with global organisations, and we know that all these laws and regulations coming for AI, to regulate AI, regulate also the digital markets, social media markets, the digital economy, the digital economy, the digital markets, social media, like DMA and AI laws. Is there any initiative being worked regarding globalising the whole thing, like creating something that will be an alliance or something?

Will Ripley:
Right. Excellent question. Is there any come together in all of this? Exactly. Is there any globalised move to this that’s actually doing any good besides just inviting people to make presentations?

Prof. Mary Aiken:
Do you mean specific to this forum in general?

Will Ripley:
No, no, no. I mean in the world. What are you seeing by way of collaborative effort at the global level that impresses you?

Prof. Mary Aiken:
At the global level, I’m seeing a real interest in online safety. So here, this is a cybersecurity conference. So I’ll just explain. Cybersecurity protects your data, your systems, your networks, and your devices. Cybersecurity does not protect what it is to be human online, as an employee, as an operator, or as a user. I’m seeing this growing movement in terms of online safety technologies, or what we call safety tech. These sectors are growing worldwide. We have one in the UK. We have the beginning of it in Europe. We have one in the US. And my belief is that this new sector is attracting investment and provides technology solutions to technology-facilitated harmful and criminal behavior. These behaviors have the characteristics of big data, volume, velocity, variety. And therefore, we need machine solutions.

Will Ripley:
Right. But as we come to the end, you must be very popular in some circles and deeply unpopular in others because of the work that you do. Those who are wanting a better internet, those who are wanting a safer environment must love you. Those either nefarious or these supposed freedom lovers that isn’t true freedom must be very much against you. Yeah.

Audience:
But I’m a scientist, and I’m well able to take care of myself. And you know, I get trolled online. If I speak in something like this, I get trolled. And do you know what I say? I’m a cyber behavioral scientist. When you troll me, you give me data and lots of it. So keep coming.

Will Ripley:
Ladies and gentlemen, she’s inviting you to troll her. Professor, that was fascinating. Thank you. Really fascinating. Thank you very much. Okay. Thank you.

Speakers

Audience

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174 words per minute

Speech length

263 words

Speech time

91 secs

Prof. Mary Aiken

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163 words per minute

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2869 words

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1057 secs

Will Ripley

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165 words per minute

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1562 words

Speech time

567 secs

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