Warning!Everything is going Deep: The Age Of ‘ Surveillance Capitalism’


February 3, 2019

Around the end of each year major dictionaries declare their “word of the year.” Last year, for instance, the most looked-up word at Merriam-Webster.com was “justice.” Well, even though it’s early, I’m ready to declare the word of the year for 2019.

The word is “deep.”

Why? Because recent advances in the speed and scope of digitization, connectivity, big data and artificial intelligence are now taking us “deep” into places and into powers that we’ve never experienced before — and that governments have never had to regulate before. I’m talking about deep learning, deep insights, deep surveillance, deep facial recognition, deep voice recognition, deep automation and deep artificial minds.

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Some of these technologies offer unprecedented promise and some unprecedented peril — but they’re all now part of our lives. Everything is going deep.

We sure are. But the lifeguard is still on the beach and — here’s what’s really scary — he doesn’t know how to swim! More about that later. For now, how did we get so deep down where the sharks live?

The short answer: Technology moves up in steps, and each step, each new platform, is usually biased toward a new set of capabilities. Around the year 2000 we took a huge step up that was biased toward connectivity, because of the explosion of fiber-optic cable, wireless and satellites.

Suddenly connectivity became so fast, cheap, easy for you and ubiquitous that it felt like you could touch someone whom you could never touch before and that you could be touched by someone who could never touch you before.

Around 2007, we took another big step up. The iPhone, sensors, digitization, big data, the internet of things, artificial intelligence and cloud computing melded together and created a new platform that was biased toward abstracting complexity at a speed, scope and scale we’d never experienced before.

So many complex things became simplified. Complexity became so fast, free, easy to use and invisible that soon with one touch on Uber’s app you could page a taxi, direct a taxi, pay a taxi, rate a taxi driver and be rated by a taxi driver.

That’s why the adjective that so many people are affixing to all of these new capabilities to convey their awesome power is “deep.”

On Jan. 20, The London Observer looked at Harvard Business School professor Shoshana Zuboff’s new book, the title of which perfectly describes the deep dark waters we’ve entered: “The Age of Surveillance Capital.”

“Surveillance capitalism,” Zuboff wrote, “unilaterally claims human experience as free raw material for translation into behavioral data. Although some of these data are applied to service improvement, the rest are declared as a proprietary behavioral surplus, fed into advanced manufacturing processes known as ‘machine intelligence,’ and fabricated into prediction products that anticipate what you will do now, soon and later. Finally, these prediction products are traded in a new kind of marketplace that I call behavioral futures markets. Surveillance capitalists have grown immensely wealthy from these trading operations, for many companies are willing to lay bets on our future behavior.”

Unfortunately, we have not developed the regulations or governance, or scaled the ethics, to manage a world of such deep powers, deep interactions and deep potential abuses.

 

Two quotes tell that story: Last April, Senator Orrin Hatch was questioning Facebook C.E.O. Mark Zuckerberg during a joint hearing of the commerce and judiciary committees. At one point Hatch asked Zuckerberg, “So, how do you sustain a business model in which users don’t pay for your service?”

Zuckerberg, clearly trying to stifle a laugh, replied, “Senator, we run ads.” Hatch did not seem to understand that Facebook’s business model is to mine users’ data and then run targeted ads — and Hatch was one of Facebook’s regulators.

But then Zuckerberg was also clueless about how deep the powers of the Facebook platform had gone — deep enough that a few smart Russian hackers could manipulate it to help Donald Trump win the presidency.

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When faced with evidence that fake news spread on Facebook influenced the outcome of the 2016 election, Zuckerberg dismissed that notion as a “pretty crazy idea.” It turns out that it was happening at an industrial scale and he later had to apologize.

Regulations often lag behind new technologies, but when they move this fast and cut this deep, that lag can be really dangerous. I wish I thought that catch-up was around the corner. I don’t. Our national discussion has never been more shallow — reduced to 280 characters.

This has created an opening and burgeoning demand for political, social and religious leaders, government institutions and businesses that can go deep — that can validate what is real and offer the public deep truths, deep privacy protections and deep trust.

But deep trust and deep loyalty cannot be forged overnight. They take time. That’s one reason this old newspaper I work for — the Gray Lady — is doing so well today. Not all, but many people, are desperate for trusted navigators.

Many will also look for that attribute in our next President, because they sense that deep changes are afoot. It is unsettling, and yet, there’s no swimming back. We are, indeed, far from the shallow now.

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Thomas L. Friedman is the foreign affairs Op-Ed columnist. He joined the paper in 1981, and has won three Pulitzer Prizes. He is the author of seven books, including “From Beirut to Jerusalem,” which won the National Book Award.

 

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interactions and deep potential abuses.

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Two quotes tell that story: Last April, Senator Orrin Hatch was questioning Facebook C.E.O. Mark Zuckerberg during a joint hearing of the commerce and judiciary committees. At one point Hatch asked Zuckerberg, “So, how do you sustain a business model in which users don’t pay for your service?”

 

Zuckerberg, clearly trying to stifle a laugh, replied, “Senator, we run ads.” Hatch did not seem to understand that Facebook’s business model is to mine users’ data and then run targeted ads — and Hatch was one of Facebook’s regulators.

But then Zuckerberg was also clueless about how deep the powers of the Facebook platform had gone — deep enough that a few smart Russian hackers could manipulate it to help Donald Trump win the presidency.

When faced with evidence that fake news spread on Facebook influenced the outcome of the 2016 election, Zuckerberg dismissed that notion as a “pretty crazy idea.” It turns out that it was happening at an industrial scale and he later had to apologize.

Regulations often lag behind new technologies, but when they move this fast and cut this deep, that lag can be really dangerous. I wish I thought that catch-up was around the corner. I don’t. Our national discussion has never been more shallow — reduced to 280 characters.

This has created an opening and burgeoning demand for political, social and religious leaders, government institutions and businesses that can go deep — that can validate what is real and offer the public deep truths, deep privacy protections and deep trust.

But deep trust and deep loyalty cannot be forged overnight. They take time. That’s one reason this old newspaper I work for — the Gray Lady — is doing so well today. Not all, but many people, are desperate for trusted navigators.

Many will also look for that attribute in our next president, because they sense that deep changes are afoot. It is unsettling, and yet, there’s no swimming back. We are, indeed, far from the shallow now.

Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram.

Thomas L. Friedman is the foreign affairs Op-Ed columnist. He joined the paper in 1981, and has won three Pulitzer Prizes. He is the author of seven books, including “From Beirut to Jerusalem,” which won the National Book Award. @tomfriedman Facebook

 

A version of this article appears in print on , on Page A23 of the New York edition with the headline: Warning! Everything Is Going Deep. Order Reprints | Today’s Paper | Subscribe

 

Dr. Fareed on DAVOS without America


January 28, 2019

Dr. Fareed on DAVOS without America

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The atmosphere at the 2019 World Economic Forum reflects the global picture perhaps more genuinely than in years past, and the painting is not very pretty. The mood here is subdued, cautious and apprehensive. There’s not much talk of a global slowdown, but no one is confident about a growth story, either. There is no great global political crisis, yet people speak in worried tones about the state of democracy, open societies and the international order”. — Dr.Fareed Zakaria

A Davos without America mirrors a world without America: The United States has withdrawn from the world.

DAVOS, Switzerland

https://fareedzakaria.com/columns/2019/1/24/a-davos-without-america-mirrors-a-world-without-america

The atmosphere at the 2019 World Economic Forum reflects the global picture perhaps more genuinely than in years past, and the painting is not very pretty. The mood here is subdued, cautious and apprehensive. There’s not much talk of a global slowdown, but no one is confident about a growth story, either. There is no great global political crisis, yet people speak in worried tones about the state of democracy, open societies and the international order.

The White House scrapped the official U.S. delegation’s trip to this year’s conference — an outgrowth of President Trump’s spat with Congress — providing a perfect metaphor for the broader outlook: The United States has withdrawn from the world.

Meanwhile, Europe is distracted, divided and despondent. Of the continent’s three major leaders, only one, Germany’s lame-duck Chancellor Angela Merkel, even showed up. British Prime Minister Theresa May did not attend because of turmoil over Brexit. French President Emmanuel Macron chose not to come because he faces ongoing populist protests from the right and left. In this environment, there is a gaping absence of leadership in Davos from the usual defenders of liberal democracy and the rules-based international system.

This does not mean that any new global leaders have stepped into the void. Contrary to some speculation, China is playing a more muted role at the forum than in the past. It sent a respected statesman, Vice President Wang Qishan, with an anodyne message aiming to reassure the world that Beijing seeks “win-win” solutions and global cooperation. This probably reflects the reality that — politically and economically — China faces its own challenges at home, with slowing growth and President Xi Jinping trying to tighten his grip over China’s vast society. India’s Prime Minister Narendra Modi faces a tougher-than-expected fight in upcoming national elections, so he didn’t show up, either.

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It is not really the dawn of dictators, few of whom came, perhaps a reflection of the fact that global norms and fora like Davos still do not celebrate strongmen. Although Western democracies may be flagging, Russia’s Vladimir Putin and Turkey’s Recep Tayyip Erdogan hold a much weaker hand than most people realize. They, too, along with Crown Prince Mohammed bin Salman of Saudi Arabia, stayed home. Jair Bolsonaro, the new president of Brazil, did attend and gave a much-anticipated speech, but it was barely six minutes long — and was received with decidedly mixed reviews.

The one area of consistent optimism among the attendees remains technology. Executives from multinational corporations such as Novartis and Cargill spoke about the next great technological opportunity — leveraging artificial intelligence to make their companies far more efficient and productive. This is a trend that they see as inexorable, forcing them to adapt or watch the competition grow. Executives and experts alike foresee that another layer of white-collar jobs could be at risk — those involving routine analytic skills. But chief executives here voiced optimism that it will all work out.

Businessmen and executives are more openly pessimistic about trade. They worry that a U.S.-China trade war could spill over across the world. Whether it happens, it seems clear that the great expansion of globalization is over. For the past 15 years, there has been no significant forward movement on trade, and many minor setbacks. This hasn’t yet translated into large-scale protectionism and tariff wars, but it is a new stagnancy.

If the West is divided, so are other regions. Almost no Arab leaders showed up to last weekend’s Arab League meeting in Beirut, relegating the summit to even greater irrelevance than usual. Latin America is now split between leaders such as the right-wing Bolsonaro and the new leftist president of Mexico, Andrés Manuel López Obrador.

The leaders of several smaller countries (all of whom insisted on staying off the record) described the world as adrift and lacking in any collective purpose, with only voices about narrow self-interest and conflict being heard. “When the Americans are engaged, we have a sense of direction,” one of them said to me. “We might disagree on some points, but at least there is a larger conversation, some efforts at cooperation. Now the only energy is negative — worries about retreat, trade wars. That’s not a world in which it is easy for us to move forward. We are all stuck.”

This, then, is the post-American world. Not one marked by Chinese dominance or Asian arrogance. Not an outright anti-American one, but one in which many yearn for a greater U.S. presence. One in which countries are freelancing, narrowly pursuing their own interests, and hoping that the framework of international order remains reasonably stable. But with no one actively shoring up the international system, the great question remains: In a world without leaders, will that system over time weaken and eventually crumble?

(c) 2019, Washington Post Writers Group

 

 

The ‘Next America’


How do we govern in the age that will begin with the 2020 election?

Thomas L. Friedman

By Thomas L. Friedman

Opinion Columnist

CreditSteven Senne/Associated Press
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CreditCreditSteven Senne/Associated Press

I have this feeling that the 2020 presidential election in the United States will be unlike any in my lifetime — and not only because it will likely involve Donald Trump running as an incumbent — he alone is a one-man, three-ring circus — but also because the huge issue that should have been the focus of the 2016 election will be unavoidable by 2020. That is: How do we govern the “Next America’’?

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“You know William Gibson’s line, ‘The future is already here, it’s just not evenly distributed’? Well, the future is here, and now it’s starting to really get distributed. This is the Next America. But our institutions and political parties have not adapted to it,’’ Gautam Mukunda, a Harvard Kennedy School Research Fellow and the author of “Indispensable: When Leaders Really Matter,’’ remarked in an interview. By 2020, it will be impossible to ignore the Next America. “The basic premises of how the economy works have shifted under our feet and the government will have to respond.’’

This Next America will raise a whole web of new intertwined policy, legal, moral, ethical and privacy issues because of changes in technology, demographics, the environment and globalization that are reaching critical mass.

Where do I start? A good place is with 5G — fifth-generation wireless systems. With the two telecom giants Verizon and AT&T now beginning to deploy 5G technology across the country, the metabolism of business, entertainment, education and health care will dramatically accelerate in the Next America, beginning around … 2020.

Getting the most from artificial intelligence and machine learning — like deploying self-driving vehicles — requires quickly transmitting massive amounts of data with very low latency. We will have that capacity in the Next America. With 5G, a Hollywood movie that now takes six or seven minutes to download onto your iPad will take six or seven seconds and microsensors in your shirt will gather intelligence and broadcast vital signs to your doctor.

As AT&T notes in one of its 5G ads, “Think of this as the next frontier in untethering, giving you the ability to take the ultrafast experience you have in your home or business with you virtually anywhere.’’

It could be as revolutionary as the internet.

But it will require all kinds of new regulations to govern applications from self-driving cars to drone delivery systems to robots that will work as security guards and home health aides.

An Associated Press report on Monday said that the government estimated there were currently “about 110,000 commercial drones operating in U. S. airspace, and the number is expected to soar to about 450,000 in 2022.’’

All of this new technology will have important implications for the education-to-work pipeline. My friend Heather E. McGowan, a future-of-work strategist, puts it this way: “The old model of work was three life blocks: Get an education. Use that education for 40 years. And then retire. We then made the faulty assumption that the next new model would be: Get an education. Use it for 20 years. Then get retrained. Then use that for 20 more years and then retire.’’

But in fact, in the Next America, argues McGowan, the right model will be “continuous lifelong learning’’ — because when the pace of change is accelerating, “the fastest-growing companies and most resilient workers will be those who learn faster than their competition.”

That means that in addition to our traditional big safety nets — Social Security and Medicare — we will need new national trampolines.

We will need to make some level of postsecondary education free to every American who meets a minimum grade and attendance requirement, so that every adult and every high school graduate can earn an associate degree or technical certificate free of tuition at a community college at any time.

Tennessee has already done that.

These same technological transformations mean the Next America will require changes in antitrust policy. Since the 1980s, antitrust policy judged if a company was getting too big largely by one question: Was the loss of competition hurting consumers through higher prices or fewer services?

“But that definition is increasingly irrelevant in an age in which the most powerful companies in the world offer products and services for ‘free’ in exchange for personal data,” Rana Foroohar, the Financial Times technology columnist, noted in a June 24 essay. “This has provoked calls for a return to the definition of monopoly in the 1890 Sherman Antitrust Act, which emphasizes the need to ensure that the economic power of large companies does not result in the corruption of the political process.’’

That’s because we are more than consumers, “we’re citizens,’’ notes Mukunda, “We have interests that stretch far beyond consumer pricing, and it’s the job of the government to protect citizens’ liberty, not just consumers’ interests. It says so right in the Constitution, and we’ve forgotten that.’’

Just one person — Mark Zuckerberg — controls Facebook, WhatsApp and Instagram. The fact that he has shown himself to be much more interested in scaling his platforms than combating those who abused them for political and economic gain — and that his lieutenants were ready to go after their high-profile critics, like George Soros — should make breaking up or regulating Facebook a front-and-center issue in 2020. But just the raw political weight of behemoths like Facebook, Amazon, Google, Microsoft and Apple needs a closer look.

The Next America is more than technology. It literally will be born in 2020. The United States Census Bureau has predicted that by 2020, for the first time, “more than half of the nation’s children are expected to be part of a minority race or ethnic group.” That will begin a process by which by 2044 “no one racial or ethnic group will dominate the U.S. in terms of size,” NPR reported.

Alas, though, the fiscal tools we need to build the Next America have been weakened by President Trump’s tax cuts. The federal deficit was not supposed to hit $1 trillion until 2020, but the White House now says it will hit that number in 2019. We’ve had deficits this size in response to the 2008 financial crisis, but we’ve never run one so huge during a boom.

That means the Next America may have to be built in the face of higher interest rates on more debt, with less fiscal ammunition to stimulate the economy should it slow down or face a crisis. So the Next America may very likely have to raise taxes or trim military spending, or Social Security or Medicare — just when all the baby boomers are retiring.

In sum, the Next America requires addressing each of those issues, and many more — from climate change to zoning rules — and how they interact. So the next election must too. The craziness around Trump has delayed much of this discussion. But 2020 won’t let us do that again. The Next America won’t wait.

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Thomas L. Friedman is the foreign affairs Op-Ed columnist. He joined the paper in 1981, and has won three Pulitzer Prizes. He is the author of seven books, including “From Beirut to Jerusalem,” which won the National Book Award. @tomfriedman Facebook

 

A version of this article appears in print on , on Page A31 of the New York edition with the headline: Next America, A New Age, Starts in 2020. Order Reprints | Today’s Paper | Subscribe

China & Malaysia: Co-Existing with Asia’s Leviathan


September 28, 2018

China & Malaysia: Co-Existing with Asia’s Leviathan

by Dennis Ignatius

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China’s Dark Spots

Of course, China is far from perfect. Indeed, there is a dark and sinister side to the modern China of high-speed trains and gleaming skyscrapers.

For one thing, not everyone is enjoying the fruits of its progress. Forty million children, for example, still live in poverty. And each day, some part of China is rocked by angry, often violent protests as disaffected and marginalized groups rebel against injustice and governmental abuse of authority.

The lack of religious freedom, too, is appalling. According to UN reports, Xinjiang Province is home to vast gulags where thousands of Muslim Uighurs are incarcerated in “re-education” camps. Falun Gong followers are savagely repressed and yet another brutal crackdown on Christians is now underway.

The Communist Party of China is also entirely dismissive of  basic human rights in violation of its own constitution. Hundreds of human rights activists are routinely jailed, often tortured as well. The death of Nobel Peace Prize laureate Liu Xiaobo in a hospital prison last year was a potent reminder of Beijing’s utter contempt for basic human rights.

Thankfully, Malaysia has not seen the kind of brutal and repressive measures that are routine in China today. We can learn a lot of things from China but it is certainly not a country we want to emulate in everything.

China: Vision, Planning and Leadership equal rapid Progress

Perhaps the one lesson we can learn is that where there is vision, planning and leadership, countries can progress rapidly. Countries don’t have to get everything right; success in just a few critical areas can make a huge difference.

China did precisely that and in 33 years has become a behemoth that now challenges our own sovereignty. As I have noted elsewhere, few realize how close we came to compromising our sovereignty under former Prime Minister Najib. His reckless borrowing and lopsided infrastructure projects would have turned us into “a wholly-owned subsidiary” of China.

Whatever one may ascribe China’s rapid rise to, there’s no escaping the fact that we now have a leviathan  at our doorstep and we must, as a nation, rise to meet the challenge it poses.  China is going to cast a long shadow over Malaysia and the region. And we have to be ready for it.

Every Malaysian politician, certainly every Pakatan cabinet minister, would do well to spend time in China – to  learn, to see what’s possible and to understand what we are up against. Perhaps they may return home with a new realism and a fresh determination to prepare our nation for a future in which China is going to figure very significantly.

Preparing for the 4th Industrial Revolution

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The other great challenge that we face is the rapid technological advances – the Forth Industrial Revolution – that is already gathering pace.

As Klaus Schwab, Executive Chairman of the Word Economic Forum (WEF) put it: “We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another. In its scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before.”

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A recent WEF study estimates that some 65% of children entering primary school today will end up doing a job that does not even exist now. Artificial intelligence will make millions of existing jobs obsolete while many of the skills we now value will become redundant.

Naveen Menon, President of CISCO Southeast Asia, warns that those most at risk will be those “lacking IT skills and ‘interactive skills’ such as negotiation, persuasion and customer service skills….”

Are we ready for this new world? It’s going to require a massive effort on the part of government, business and educators to ensure that our workforce will have the skills to compete and prosper in the coming decades, not just against China (which is already making quantum leaps in technology)  but even against our immediate neighbours.

It is a sobering reminder that we can no longer afford to dissipate our energies in destructive and divisive arguments and policies that detract us from facing up to the real challenges we face.

Running out of time

Simply put, we are running out of time as a nation. We cannot continue to keep fighting old battles; we either fight amongst ourselves and be left behind or unite to compete with the rest of the world.

Whether we like it or not, we cannot turn back the clock of history:

Malaysia is a multicultural nation with a rich blend of ethnicities, languages, cultures and traditions. We can either make it our  greatest strength or allow it to become our greatest weakness.

 

Likewise, we can harness the power of our respective belief systems to inspire the kind of  unity, integrity and work ethic that is necessary to build a prosperous and peaceful nation or we can use it to justify exclusionary and extremist policies that diminish us all.

We are a nation of many that must become one to prosper, to face the challenges that confront us.

The Challenge of Leadership

Of course, the challenges are enormous. How do you change the mindset of a nation that has long been conditioned to think and act in racial terms, that has long been taught to view each other with suspicion and distrust? How do you even promote much-needed policies that, in the short-term at least, might be deeply unpopular?

How does the government persuade the nation to rise to its greatness when the opposition is trying to drag it down into the gutter of bigotry?

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But that is the true challenge of political leadership: to take a nation where it must go, not where it necessarily wants to go. If anyone can do it, it is surely Dr Mahathir and this government.

Dr Mahathir has shown that he is not afraid to do what is unpopular if it’s good for the nation. And, at 93, he knows he doesn’t have the luxury of time to wait for evolutionary or incremental change; there must be a drastic reordering of the way we do things or nothing will change.

The greatest legacy he can give to our nation is to leave behind a nation with sound national institutions, a grand vision for the future and a reformatted mindset that pulls us together rather than drives us apart. It is perhaps no coincidence that circumstance has brought back the very man who dared to dream of “a Bangsa Malaysia” to lead us again when national unity is most needed.

We have perhaps a five-year window of opportunity (till the next election) to dramatically change our nation for the better. Fate has given us another chance to reinvent ourselves, learn from our mistakes and build that better nation we all long for. If China can do it, so can we.

Let us be that transformational generation  – the generation that makes the transition from the old Malaysia to the new Malaysia.

       

US-China Technology Competition is about “Self Transcendence”


September 13, 2018

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Asia Pacific Bulletin, No. 439

Publisher: Washington, DC: East-West Center
Available From: September 12, 2018
Publication Date: September 12, 2018

US-China Technology Competition is about “Self Transcendence”

By Dr. Wenhong Chen

Eric Schmidt, then executive chairman of Alphabet, Google’s parent firm, commented on China’s AI ambition on November 1, 2017, in Washington DC: “By 2020 the Chinese will have caught up (to the United States). By 2025 they will be better than us. And by 2030 they will dominate the industries of AI.” Not to miss the boat, about one and a half months later, Google announced its first major China move after its search engine left the mainland in 2010 — that it was opening a Google AI China Center in Beijing, its first in Asia, led by the Chinese-American scientist Feifei Li.

Disruptive AI, Big Data, and Cloud Computing (ABC) innovations have generated opportunities and challenges for entrepreneurs and policymakers across the Asia Pacific. Given the centrality of ABC policy to national security, economic prosperity, and global influence, it is critically important to understand and assess ABC policy practices and their implications for the digital economy and the US-China bilateral relationship.

Chinese government policy has been credited as a major driver of China’s digital transformation. In the pursuit of the Chinese Dream — a narrative of the great rejuvenation of the Chinese people — China has been purposefully and skillfully developing ABC as a top national project since 2013.

First, a series of regulatory and legislative work including the passage and implementation of national, regional, and local policies, laws, plans, and programs (including Made in China 2015 which has become a contentious issue in the US-China trade talks).

Second, financial and institutional support gives rise to national big data pilot zones, ministerial industry demonstration bases, provincial and municipal industrial parks, and numerous national big data and AI research labs. Guizhou, one of poorest provinces for a long time, was selected as China’s first national big data zone and has demonstrated one of the highest annual GDP growth rates in the nation.

Third, the government has been exploring new mode of engagement with established and emerging tech giants such as Baidu, Alibaba, and Tencent (BAT) and their younger peers which have been growing primarily outside of the state-owned sector. BAT have been chosen as national AI champions, and as part of the mixed-ownership reform, they were invited to invest in state-owned telecom behemoths for a greater integration of public and private sector digital resources in 2017. During the Two Sessions (China’s parliament sessions) in spring 2018, Chinese tech firms listed in overseas stock markets were invited to return to the Chinese stock markets.

Fourth, China has been promoting cyber-sovereignty through the control of cross-border data flow and the demand of data localization. Domestic and foreign companies are required to store data from China in China. Transnational corporations have been complying – via joint ventures with local, often state-owned partners – and complaining at the same time.

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When asked by Senator Dan Sullivan at the Senate hearing on April 10, 2018 on whether Facebook and Mr. Zuckerberg were too powerful, Mr. Zuckerberg redirected: “And when I brought up the Chinese Internet companies, I think that that’s a real strategic and competitive threat that, in American technology policy we should be thinking about.”

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Henry Kissinger lamented that “Other countries have made AI a major national project. The United States has not yet, as a nation, systematically explored its full scope, studied its implications, or begun the process of ultimate learning.” America’s ABC policy has been less systematic than China’s top-down, whole-of-government, national-strategy approach.

The Trump Administration’s ABC approach, if any, seems to center on economic security as an integral part of national security. The Department of Defense spent $7.4 billion in 2017 on ABC, and set AI as the cornerstone of America’s military dominance. Similar to other areas, the Administration is shifting from the multilateral approach to one of bilateralism. As importantly, the Administration has been more confrontational, accusing China of forced technology transfer and intellectual property theft, and threatening tariffs and other punitive actions. In particular, the Administration has demanded that the Chinese government give up its Made in China 2025 plan which aims to develop China’s ABC industries as world leaders.

The US inter-agency Committee on Foreign Investment in the United States (CFIUS) has been tightening scrutiny on Chinese investment in US critical infrastructure and technology. A bipartisan bill further expands and strengthens CFIUS oversight.

In addition to these protectionist measures, the Administration recently released a factsheet showcasing its AI efforts and achievement in terms of military and unclassified R&D investment, government service, regulatory barrier removal, talent training, and international collaboration. The White House Office of Science and Technology Policy (OSTP) organized an AI Summit with more than 30 American corporations and various federal agencies for better public and private AI coordination in May 2018. Although observers have different assessments on the Administration’s protectionist approach, it is time for the US to step up, starting with a long-term, more comprehensive tech policy framework, as well as greater investment in R&D.

While acknowledging the importance of ABC to national security and government efficiency, the federal government has been facing challenges such as 1) an aging IT infrastructure, 2) shortage of IT talent, and 3) tight budgets. Since President Trump took office, the Office of Science and Technology Policy (OSTP), the White House hub of innovation for the last four decades, has experienced substantial decline: the director position has not been filled and staff has dropped from 135 during the Obama administration to 45, and the majority have no science background

As media and pundits fixate on a binary US-China tech competition, both Washington and Beijing need to carefully gauge the benefits and costs of US containing or engaging China as a strategic competitor. ABC related policies and practices are at the frontline. Perhaps Wang Yi, the Chinese foreign minister, says it the best that the aim of US-China relations is about “self-transcendence rather than replacing each other.”

Dr. Wenhong Chen is  a visiting fellow at the East-West Center in Washington DC and associate professor of media and sociology at the University of Texas at Austin. She is serving as the chair of the Communication, Information Technologies, and Media Sociology Section of American Sociological Association (CITAMS). She can be contacted at Wenhong.Chen@Austin.UTexas.edu.

WEF on ASEAN: Key Agenda


September 8, 2018

WEF on ASEAN: Key Agenda

by Chheang Vannarith / Khmer Times
 
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Justin Wood, Head of Asia-Pacific, Member of the WEF Executive Committee told reporters on September 6 (Photo: VNA)

 

The World Economic Forum of ASEAN will discuss the Fourth Industrial Revolution, powered by a wide range of new breakthroughs. Chheang Vannarith writes these new technologies are revolutionary due to the speed, breadth and depth of anticipated change they will bring and warns that if Asean leaders do not think regionally, they will miss out on opportunities and fail to address growing challenges.

The World Economic Forum on ASEAN is going to take place in Hanoi on 11-13 September, with the participation of, if nothing changes, seven state leaders from ASEAN member states, namely State Counsellor of Myanmar Daw Aung San Suu Kyi, Cambodian Prime Minister Hun Sen, Indonesian President Joko Widodo, Laos Prime Minister Thongloun Sisoulith, Malaysian Prime Minister Mahathir bin Mohamad, Singapore Prime Minister Lee Hsien Loong, and Vietnam’s Prime Minister Nguyen Xuan Phuc.

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The main theme of the forum this year focuses on how Asean can embrace the Fourth Industrial Revolution – which generally refers to technological revolution in the fields of artificial intelligence, robotics, 3-D printing, the Internet of Things, autonomous vehicles, nanotechnology, biotechnology, materials science, energy storage, and quantum computing. This is a new, critical area of regional cooperation as Asean moves towards building a genuine people-centered, people-oriented community.

Opportunities are present, stemming from the Fourth Industrial Revolution, and we need to be aware of and get ready to face emerging challenges such as job losses and disruption, inequality and political instability, and cyberattacks. With the accelerating pace of change and transformation in almost all dimensions of social, economic and political landscapes, Asean member countries need to accelerate their comprehensive reforms, especially regulatory reforms, in order to grasp the benefits and overcome the challenges.

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Information and knowledge sharing is critical to building national and regional capacity in navigating through these transformations and uncertainties. The less developed economies like Cambodia, Laos, and Myanmar need more international support in building their digital infrastructure and human capital to survive and stay economically competitive. If not, they risk being left far behind. Be aware that widening the development gap within the region will prevent the realisation of a genuine regional community and could potentially trigger regional division and instability. A two-tiered ASEAN is not a healthy ASEAN.

The report by the World Economic Forum and the Asian Development Bank in 2017 suggests that regional governments must be fast, agile, experimental, inclusive, and open in developing an ecosystem for digital integration. Being inclusive in policy design and execution has been one of the main shortcomings in regional integration in Southeast Asia since regional projects are chiefly led by political ruling elites with low participation from the private sector and civil society. It is commonly said that ASEAN is an elite-driven regional project.

How to transform this unprecedented breadth and depth of technological revolution into a source of inclusive and sustainable development remains the top challenge for ASEAN and its member states. It is proven that inequality is one of the root causes of political and social instability and ASEAN must develop a strategy to link technology with the narrowing development gap – one of which is to promote “an inclusive Fourth Industrial Revolution”.

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The new Cambodian government to be formed today has included digital economy into its development agenda for the next five years, with the expectation that it will help Cambodia to compete with other regional countries within the context of intensifying market competition, the gradual collapsing of labor-intensive manufacturing industry, and the concentration of market power by multinational companies.

The local enterprises, especially small and medium-sized enterprises (SMEs), will face mounting challenges to remain competitive in the market that will transition to virtual products and services than real ones. Technology remains unaffordable and inaccessible for many SMEs in the region and there is an urgent need to develop a support mechanism, both financial and technical support, to assist SMEs in utilizing the benefits accorded in the Fourth Industrial Revolution.

Another interesting agenda of the forum is the dialogue session on the future of the Mekong region – a new growth center and strategic frontier of Asia. The leaders from Cambodia, Laos, and Vietnam will present their views on the current state of regional development and integration in the Mekong and the management of the Mekong River. There are increasing concerns that hydropower dams being constructed and planned along the mainstream of the river will severely affect the livelihoods and ecosystem in the whole Mekong River Basin. The recent dam collapse in Laos has prompted riparian countries to review their hydropower projects.

The two downstream countries, Cambodia and Vietnam, are the most affected countries. They have put certain pressures on upstream countries, particularly Laos, to conduct trans-boundary environmental and social impact assessments before constructing dams. Data sharing on water flow and quality is another key area of cooperation, especially in the dry season. There are many outstanding issues and emerging challenges that the Mekong countries need to overcome and find suitable solutions for all. A win-win cooperation must be real on the ground, not only in diplomatic statements. The perception of the local people, not the ruling elites, is the best indicator to reflect and prove whether a development project is a win-win project.

ASEAN and other sub-regional institutions such as the Mekong River Commission share one common weakness which is the lack of implementation and enforcement. Policies abound – either in the form of blueprints, declarations, or joint statements – but implementation is lacking. Next week, ASEAN leaders will share their perspectives on the Fourth Industrial Revolution and the Mekong River. It will be a reminder that people want to know concrete actions and solutions that benefit whole societies and not small groups of political and business elites. That is what inclusiveness is all about.

Chheang Vannarith is a Young Global Leader of the World Economic Forum.