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ISSUE 4

GLOBAL
SOLUTIONS
JOURNAL

RECOUPLING
   THE GLOBAL SOLUTIONS SUMMIT EDITION
ABIDHADJAEV ∙ ALTMAIER ∙ ANBUMOZHI ∙ ANDOR ∙ ANHEIER ∙ BARLEY
BEIER ∙ BHATTACHARYA ∙ BONDE ∙ BRADFORD ∙ CHANDRASHEKHAR
CIURIAK ∙ DARNALL ∙ DE JAGER ∙ DJEFFAL ∙ FRANK ∙ GANTEN ∙ HANNI
HENDRIYETTY ∙ HENFREY ∙ HORNO ∙ INABA ∙ ISCHINGER ∙ JAITMAN
KASTROP ∙ KELLY ∙ KHAN ∙ KICKBUSCH ∙ KOMIYAMA ∙ MAIRA ∙ MARTNER
MATSUSHITA ∙ MONJEAU ∙ MORGAN ∙ NAKATA ∙ NEMOTO ∙ NIKOLAEVA
OKUBO ∙ OHNO ∙ OKONEDO ∙ PENHA-LOPES ∙ PIÑEIRO ∙ PONATTU
SCHMIDT ∙ SNOWER ∙ STEINHILBER ∙ TIBERGHIEN ∙ VIGLIZZO
YANAGISAWA ∙ YOSHINO ∙ ZADEK
ISSUE 4 ∙ MARCH 2019
GLOBAL SOLUTIONS JOURNAL ∙ ISSUE 4                                                                                                                                                                                 PREFACE

Paradigm change
for a sustainable
world ­order
                                                                                                                        Global Solutions Summit 2018 closing plenary (from left) with Laura Jaitman, Argentine Ministry of
                   Dennis J. Snower
                   President, Global
                                              Dear Reader,                                                              Treasury; Colin Bradford, Vision 20; Naoyuki Yoshino, Chair T20 Japan; Jose Martínez, CARI; Dennis
                                                                                                                        J. Snower, GSI; Sebastian Turner, Tagesspiegel.
                   Solutions Initiative
                                              Welcome to the third Global Solutions
                                              Summit in Berlin. Our annual Sum-                                         the world in preparing this Summit, span-            bring their practical experiences into the
                                              mit aims to support the Japanese T/G20                                    ning researchers, policy makers, business            global problem-solving discussion. There
                                              Presidency. We are honored that State                                     leaders, and civil society representatives.          will also be a special forum for highlight-
                                              Minister Masahisa Sato will address our                                                                                        ing the implementers’ innovations.
                   Markus Engels
                                              Summit as a representative of the G20 as                                  As in 2017 and 2018, we proudly welcome
                   Secretary General,         well as the T20 Sherpa Dean Yoshino.                                      the Young Global Changers (YGC). More                We are honored to welcome Heads of State
                   ­Global Solutions
                                                                                                                        than 3,500 applicants from 155 countries             and Government, representatives from
                    Initiative
                                              The theme of this year’s Summit is global                                 applied to participate and it was exceed-            various international organizations, G20
                                              paradigm change to recouple social, po-                                   ingly difficult to choose only 100 individu-         and T20 sherpas, ministers, think tank re-
                                              litical and economic progress.                                            als for this year’s program. During the              searchers, representatives from NGOs and
                                                                                                                        Summit, you will see our Young Global                global enterprises, mayors and experts
                                              There are many excellent contributions in                                 Changers actively participating in the               who are working toward global solutions
                                              this journal and we are deeply grateful to                                proceedings. Last weekend, during the                from a local and regional perspective.
                                              all the authors. At the beginning of this is-                             Global Solutions Summer School, they
                                              sue, you will find two keynote articles: the                              prepared research and projects alongside             This Summit connects researchers and
                                              MSC Co-Chair Colm Kelly and the Global                                    the Summit and thereafter. We kindly ask             decision makers from around the world
                                              Solutions President Dennis Snower pro-                                    the other Summit participants to support             to tackle global problems multilaterally in
                                              vide their complementary perspectives on                                  their work as needed.                                the interests of civil societies around the
                                              guidelines for global paradigm change.                                                                                         world. As such, it is an exercise in recou-
                                              Subsequent contributions are to be un-                                    This year we seek to build a bridge be-              pling economic, political, and social pros-
                                              derstood in this light.                                                   tween the worlds of ideas and action by              perity. Thank you for joining us in Berlin.
                                                                                              Copyrights: Tobias Koch

                                                                                                                        bringing the T20 researchers into closer
                                              We are delighted to welcome over 1,200                                    relation with visionary implementers from            Yours, in hope and confidence,
                                              participants and more than 150 speakers.                                  politics, business and civil society. The
                                              We are humbled by the enthusiasm and en-                                  implementers will challenge the propos-
                                              gagement of so many people from around                                    als made by the T20 working groups and

                                          4                                                                                                                              5
CONTENTS                                                                                                                                                        CONTENTS

Global Solutions Journal                                                         Issue 4
      VISION BRIEFS                                                                    ECONOMICS AND TRADE
12    Toward global paradigm change:                                             130   The US-China trade war: Technological roots and WTO responses
      Beyond the crisis of the liberal world order                                     Dan Ciuriak
      Dennis J. Snower                                                           136   SMEs – Champions of sustainable business development.
33    Repurposing our economies – and our businesses                                   Lessons for a regulatory framework
      Colm Kelly                                                                       Jost de Jager
                                                                                 140   SME finance using bank account information: Credit-risk reduction effect
      CLIMATE CHANGE AND SUSTAINABILITY                                                on small and medium-sized enterprise finance
64    Multilateralism – We need to strengthen free, rules-based trade                  Naoko Nemoto, Naoyuki Yoshino, Yutaka Okubo, Daimei Inaba, Kentaro Yanagisawa
      to the benefit of everyone                                                 147   Trade, food security and the comparative environmental advantage
      Peter Altmaier                                                                   of food-producing countries
66    Realizing the sustainable future: How to put the G20 on the right track?         Ernesto F. Viglizzo, Martín E. Piñeiro
      Venkatachalam Anbumozhi                                                    156   High-quality infrastructure and land acquisition for infrastructure
75    Solutions for a paradigm shift toward sustainability                             development through land trusts
      Alexander Bonde                                                                  Naoyuki Yoshino, Umid Abidhadjaev, Nella Sri Hendriyetty
82    Innovation toward a platinum society: Proposal for a community energy
      system based on renewable energy                                                 DIGITAL TRANSFORMATION
      Hiroshi Komiyama                                                           166   How are algorithms transforming our lives?
89    Toward a climate-resilient and sustainable future:                               Welcome speech at the Global Solutions Summit
      T20 Japan TF3 on Climate and Environment                                         Katarina Barley
      Kazuo Matsushita                                                           173   The digitalization of industries: Industrial policies for an inclusive
97    FABLE and Argentina’s food and land-use systems                                  and sustainable digital transformation
      Adrian Monjeau, Federico C. Frank                                                Christoph Beier
104   Think 20 Japan 2019: The “Japan SDGs Model” and the Task Force on          179   Tech-driven disruption in social sectors:
      the 2030 Agenda for Sustainable Development                                      The irresistible force meets the immovable object
      Izumi Ohno                                                                       Rentala Chandrashekhar
114   There are no jobs on a dead planet:                                        186   Sustainable development of artificial intelligence (SAID)
      Trade unions as agents of social and environmental transformation                Christian Djeffal
      Jochen Steinhilber
120   The critical frontier: Reducing Belt and Road emissions
      Simon Zadek

                                           6                                                                                  7
CONTENTS                                                                                                                                             CONTENTS

      FUTURE OF WORK AND EDUCATION                                               GLOBAL GOVERNANCE AND THE FUTURE OF POLITICS
196   Financial literacy for the digital age:                              278   Effectiveness of development cooperation:
      The need for digital financial education                                   Need for a new conversation on how to assess it
      Peter J. Morgan                                                            Debapriya Bhattacharya, Sarah Sabin Khan
205   New challenges for education systems:                                287   Changing the dynamics: From conflict to transformation
      What makes the next generation and the future workforce strong?            Colin Bradford
      Barbara Ischinger                                                    293   Changing the paradigm: Systems thinking, systems organizing,
213   The future of work: A case for international cooperation                   systems transformation
      Laura Jaitman, María Florencia Asef Horno                                  Arun Maira
220   Shaping business education to support recoupling                     298   Cooperation with Africa in T20 Japan
      Enase Okonedo                                                              Ryosuke Nakata
                                                                           304   Causing and correcting G20 compliance
      SOCIAL COHESION                                                            Alisa Nikolaeva
230   Decoupling and social arrest: Which ways forward?                    312   A key message from the Paris Peace Forum: Defusing cross-national
      Helmut K. Anheier                                                          misperceptions and advancing inclusive global governance
237   Next stage: European Social Union.                                         Yves Tiberghien
      To overcome internal imbalances, the EU must address outside needs
      László Andor
243   Reducing the global burden of chronic pain                           320   The Global Solutions Initiative for the G20
      Beth D. Darnall                                                      322   Imprint
249   Domestic resource mobilization and the redistributive impact
      of fiscal policies in Latin America
      Michael Hanni, Ricardo Martner
254   Recoupling through regeneration: Community-led initiatives and
      the re-imagining of economic and social policy
      Thomas Henfrey, Gil Penha-Lopes
260   Inequality and the productivity slowdown: The growing gap
      between the most productive and the rest dampens social cohesion
      Christian Kastrop, Dominic Ponattu, Julia Schmidt
267   Invest in universal health coverage now
      Ilona Kickbusch, Detlev Ganten

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GLOBAL SOLUTIONS JOURNAL ∙ ISSUE 4                                                                                                                                                   DIGITAL TRANSFORMATION

Sustainable develop­                                                                                      applications in need of further assistance.
                                                                                                          Face recognition and other controversial
                                                                                                                                                               derstanding of the problems in the country,
                                                                                                                                                               including floods, violence against women,

ment of artificial
                                                                                                          AI technologies are used to ensure public            malaria, and cholera. On the other side of
                                                                                                          security and safety.                                 the spectrum are so-called lethal autono-
                                                                                                               These examples highlight some of the            mous weapons systems (LAWS), which

intelligence (SAID)
                                                                                                          important features of the concept of AI.             are also fuelled by artificial intelligence.
                                                                                                          According to Klaus Mainzer’s definition, AI          After several years of expert meetings of
                                                                                                          denotes systems that can deal with certain           experts, states established a Group of Gov-
                                                                                                          problems independently and efficiently.              ernmental Experts under the umbrella of
                                                                                                          The term has famously been framed as a               the Convention on Certain Conventional
                                                                                                          research question by four computer sci-              Weapons. The controversial negotiations
                                                                                                          entists in a grant proposal. Today, AI is            in this group show that new possibilities
The author:                                             Artificial intelligence (AI) is changing our      considered a sub-discipline of computer              through AI can be hard to resolve.
                                                        lives. However, it seems to be a solution         science that is actively pursued by special-
                   Christian Djeffal
                                                        and a problem at the same time. In order          ized academics and research institutions.
                   Associated Researcher,
                   Alexander-von-Humboldt-
                                                        to understand opportunities and risks,
                                                        to evaluate promises and warnings, we
                                                                                                          AI is not a single technology but a set of
                                                                                                          technologies.i Those technologies are not
                                                                                                                                                               »Being a general-
                   Institute for Internet and
                   Society (HIIG)                       should ask the right questions and choose         limited to specific circumstances in their            purpose
                                                                                                                                                                technology,
                                                        the right frame of analysis. It is time to        use. They can be used in many contexts
                                                        think and talk about AI in terms of sustain-      and for various purposes. AI denotes a set

                                                                                                                                                                one can create
                                                        able development.                                 of general-purpose technologies in the
                                                                                                          truest sense of the word. This might be one

                                                                                                                                                                swords and
                                                        I. WE NEED TO TALK ABOUT ARTIFICIAL               reason why AI has been compared to other
                                                        INTELLIGENCE                                      general-purpose technologies like steam-

                                                                                                                                                                ploughshares
                                                        AI applications play an increasing role in        machines, and the production of steel.
                                                        all parts of society. In hospitals, image rec-         Being a general-purpose technology,

The institution:
                                                        ognition systems aid doctors in diagnosing
                                                        diseases like skin cancer. They are in many
                                                                                                          one can create swords and ploughshares
                                                                                                          from AI.                                              from AI.«
                                                        cases more accurate than the doctors. In               The metaphors of swords and plough-
                                                        our private life, different AI applications al-   shares certainly applies to AI, and this can
                                                        low us to “speak” with our mobile phones,         even be seen in the practice of the United                Governments, companies and research
                                                        to take better pictures and to sort them au-      Nations. UN Global Pulse, an innovation              institutions are having heated debates
                                                        tomatically. Fully automated public trans-        initiative of the Secretary General, uses AI         about the future of artificial intelligence.
The Alexander von Humboldt Institute                    portation is available in many countries          proactively for development and humani-              They talk about ethics, about AI’s impacts
for Internet and Society researches the                 and driving is increasingly automated. In         tarian action. The Pulse Lab Kampala de-             on human rights and about the ways in
development of the internet from a societal             factories, AI-empowered industry robots           veloped a system that monitors local public          which AI could strengthen the economy.
perspective. The aim is to better understand            can handle an ever-increasing number of           radio stations all over the country. Small           Depending on the respective focus, spe-
the digitalization of all spheres of life. As
                                                        tasks. In offices, AI tools help to plough        hardware is deployed all over the country,           cific topics concerning AI are in the lime-
the first institute in Germany with a focus on
internet and society, HIIG has established
                                                        through data in order to make predictions         a text-to-speech application transforms              light. While stakeholders have identified
an understanding that emphasises the                    or to identify certain important aspects of       the data and another AI application analy-           many important issues, very little reflec-
embeddedness of digital innovations in societal         that data. Risk management tools are also         ses and clusters the data. This is done in           tion has addressed the question of the
processes.                                              used by tax administrations to identify tax       order to give the government a better un-            right frame. In particular, policy makers

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and other stakeholders have not explored             regions of the world. It addresses issues      rent state of governance mechanisms is                 1. Understand change and share
the potential of framing AI in the terms of          of economic development, but attributes        far from perfect, they are steps in the right         ­knowledge
sustainable development.                             the same importance to social and en-          direction. AI technologies might be further            It is important to understand change
                                                     vironmental issues. It highlights human        tools to strengthen the governance of sus-             caused by AI in a comprehensive manner
II. WHY SUSTAINABLE AI DEVELOP­                      rights, but is also sensitive for concerns     tainable development.                                  and to map its impacts. This applies to
MENT?                                                at the level of groups and countries. It                                                              beneficial and harmful impacts. It is one
While there are sporadic attempts to                 addresses public and private actors and        Fit                                                    of the major features of the discourse sur-
highlight the potential of AI to contribute          includes civil society. What is even more      Generally, the framework of sustainable                rounding sustainable development that
to the fulfilment of sustainable develop-            important that sustainable development         development has been used to deal with                 changes are tracked, goals are defined and
ment goals, there is at the moment no                works on the micro, the meso and the           similar issues and, therefore, is a good fit           monitored. Best practices are shared and
comprehensive analysis of how different              macro level. Sustainability can be an is-      for AI’s current challenges. First, it sets            communicated across communities. Such
technologies are to be considered from the           sue for specific products and applications.    limits and goals for technological devel-              a model would have great benefits for the
perspective of sustainable development.              Yet, it can be also a standard measuring       opment. Hence, it is neither exclusively               governance of artificial intelligence. This
This is somewhat surprising, considering             overall impacts on the environment or so-      directed to the potential nor to the risks             is particularly important in the field of AI
that the discourse on sustainable develop-           cial justice. In contrast, the focus of the    of AI. Sustainable development highlights              for discussions are sometimes guided by
ment is very far advanced but captures a             discourse on AI tends to be on the con-        both sides of the coin. What’s more, the               specific very visible applications like auto-
basic conflict that represents current dis-          sequences of specific applications, par-       concept of sustainable development is not              mated cars or narratives from Hollywood
cussions concerning AI. That is the conflict         ticularly in their performance concerning      shy to address conflicts. From the initial             movies. In order to assess the change, it
between development and its potential                fairness, accountability and transparency.     discussions, there was an inherent conflict            would be necessary to have a complete
costs. Sustainable development acknowl-              Save for the future of work, the impacts       between sustainability and development.                picture of where AI is already in use and
edges the opportunities of progress, but             of AI on society as a whole are only rarely    While sustainable AI development does not              what the repercussions of that use are.
also highlights its limitation due to im-            discussed. Sustainable AI development as       necessarily deal with the need for progress            Instead of focussing on very specific is-
pacts on societal concerns such as the en-           a frame could change that.                     and environmental impacts, there are often             sues like the trolley dilemma,1 it would be
vironment. Reducing the main advantages                                                             trade-offs that need to be addressed in a              interesting to see how AI becomes a part
of sustainable AI development to three               Governance                                     clear manner. These trade-offs can con-                of the everyday infrastructure. Such a sys-
words, it would be inclusiveness, govern-            One of the remarkable features of sustain-     cern the functionality of the systems and              tematic approach might uncover that there
ance and connectivity.                               able development is its focus on govern-       the many things that can be achieved on                are many more applications that are not
                                                     ance and implementation. The discourse         the one side and notions of privacy, trans-            automated decision-making systems but
                                                     on sustainable development has continu-        parency and individual autonomy on the                 nevertheless play an ever-increasing role.
»Sustainable AI                                     ously been improved. The 2030 Agenda for
                                                     Sustainable Development has established
                                                                                                    other.
                                                                                                                                                          2. Develop a strategy of strategies
  development                                        a multi-stakeholder process in order to        III. LEARNINGS FROM SAID                              There is currently a proliferation of nation-

 is an inclusive
                                                     support achievement and development            Sustainable AI development is an inclu-               al AI strategies. Canada, China, Finland,
                                                     of specific goals and related indicators.      sive framework. Yet, it is different than             France, Germany, and Japan are among

 framework.«
                                                     A sustainable perspective on AI does not       other frameworks and has the potential to             the countries that have published such
                                                     only highlight goals and limits, but neces-    highlight specific aspects of artificial in-          an AI-strategy. While it is certainly a good
                                                     sarily implies the question how they are       telligence and digitization. This change of           thing that more and more countries posi-
                                                     to be realized. From this perspective, it is   perspectives offers specific learnings that           tion themselves regarding such a set of
Inclusiveness                                        not enough to talk about ethics and human      can be implemented when discussing the                transformational technologies, the ques-
The discourse on sustainable develop-                rights but to take specific actions in order   future of artificial intelligence.                    tion remains how countries coordinate.
ment has attained a very high level of in-           to achieve certain goals or prohibit certain                                                         While every country wants to become a
clusiveness. It relates to all countries and         impacts of technologies. While the cur-                                                              leader in AI, this is not a realistic option,

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save for a few countries. And even the                AI applications. This has been discussed            What has been stated for infrastruc-               right from the beginning. In certain ju-
countries that can be leaders in AI technol-          in the context of music and health. It is      ture is also true for the ecosystem. While              risdictions, data protection officers have
ogy contemplate whether they are strong               even more significant when this problem        it is certainly necessary to have hubs that             become the agents of data protection in
enough to outweigh the rest of the world.             is combined with the gig-economy. There        spark innovation and help to make innova-               companies, organizations and public ad-
Despite certain quotes from different poli-           are concerns that certain platforms might      tions applicable to real world problems,                ministration. In the case of using AI in
ticians in 2016, it becomes more and more             take advantage of missing labor regulation     those ecosystems should also include re-                public, the ecosystem should also include
clear that AI research cannot be compared             in developing countries and exploit the        flections on the ethical, legal and social              citizens. There are different participation
to the race for the nuclear weapon. It is             workforce there for simple labelling tasks.    impacts of AI. Many AI strategies consider              tools that could be used to include citizens
about different technologies, different ar-           To train an algorithm in such a setting        so-called “AI-observatories”. In certain do-            in the design process. These methods in-
eas of application and different purposes.            means effectively to make one’s own abil-      mains, there are also agencies that have to             clude sortition or random sample voting.
While machine learning based on neural                ity redundant. However, gig-workers with-      test and certify AI applications.                       When there are important decisions to
networks works well today, it is far from             out legal protection have little leverage to                                                           make for instance in the smart city con-
clear what the next breakthrough will be              influence such a setting. If these and com-                                                            text, it would be possible to consult such a
based on. In such a situation, we are in
need of a strategy of strategies allowing for
                                                      parable situations are not addressed from
                                                      the perspective of sustainability and jus-
                                                                                                     »If it is true that                                    group that would be selected to be trained
                                                                                                                                                             and work as a citizens’ data ethics com-
competition and cooperation at the same               tice, we might be soon faced with another        ›responsible                                          mission. The ecosystem for sustainable AI

                                                                                                       design eats
time. Such a strategy of strategies should            aspect of what has been coined “digital                                                                development should comprise various ac-
provide incentives for inventions but help            slavery”.ii                                                                                            tors and organizations, from the UN High

                                                                                                       oversight for
to avoid that the same inventions and mis-                                                                                                                   Level Panel on Digital Cooperation to local
takes are made in different countries again           4. Build an infrastructure and an ecosys-                                                              citizens’ data ethics commissions.

                                                                                                       breakfast‹,
and again. It should also coordinate efforts          tem for sustainability
where countries actually have the same                From the perspective of sustainable AI de-                                                             IV. THE FUTURES OF AI

                                                                                                       it will be
goals and can work together. The sustain-             velopment, an infrastructure for sustaina-                                                             In conclusion, the preliminary learnings
able development agenda is such a strat-              ble AI development is key. This infrastruc-                                                            from sustainable AI development show
egy of strategies.                                    ture has to transgress the goals of building
                                                      fast and functional AI applications. It will     important to                                          that there is a lot of potential to think about
                                                                                                                                                             AI in terms of sustainable development. As
3. Justice
One of the most important features of
                                                      also have to deal with questions of making
                                                      applications sustainable by taking into ac-      think about                                           a set of general-purpose technologies, AI
                                                                                                                                                             has not one single future. It has many fu-
sustainable development is the constant
quest for justice equity and fairness. Sus-
                                                      count individual, group and societal needs.
                                                      Take for example the need to assess and          agents of good                                        tures, and these futures depend on more
                                                                                                                                                             than just technological inventions. They
tainable development is concerned with
current affairs but also takes into account
                                                      test AI applications. This is an interest
                                                      shared by developers, companies, regula-
                                                                                                       design. «                                             depend on the decisions taken to fund re-
                                                                                                                                                             search and innovation, they depend on de-
future generations. As a framework, SAID              tory authorities and policy makers alike.                                                              cisions to implement technologies in soci-
makes such questions of justice visible on            Testing and evaluation are much easier                                                                 ety, and they depend on choices about how
the micro and the macro level. There are              when there is an infrastructure allowing           If it is true that “responsible design eats         to design and how to implement technolo-
currently issues that are not really re-              to do this. A focus group of the ITU cur-      oversight for breakfast”, it will be important          gies. AI applications can play an important
solved. One issue that is projected to be a           rently undertakes such an effort by build-     to think about agents of good design.                   role in society but it is us who decide which
great concern in the future is the distribu-          ing evaluation and test sets for specific AI       Those agents have to be close to the                role they play. To employ sustainable AI
tion of wealth gained from trained neural             driven eHealth applications.iii They are in    processes of building AI and able to in-                development as a framework makes us
networks. This is particularly problematic            the process of creating a test environment     clude ethical, legal and social aspects                 aware of the choices.
when the training data is based on the ef-            that would allow the evaluation and bench-
forts of people that do not profit from the           marking of eHealth applications.

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1
 In the context of AI, this is often related to situations in which a car can do nothing than choose between
harming and potentially killing different groups of people. The problem is that this choice can be programmed.
i
     U. Gasser and V. A.F. Almeida, ‘A Layered Model for AI Governance’, IEEE Internet Computing 21 (2017), 58–62.
ii
      D. Snower, ‘Emancipation in the age of digital slavery’, Global Solutions Journal 1 (2018), 18–20.
 M. Salathé, T. Wiegand, M. Wenzel and R. Kishnamurthy, Focus Group on Artificial Intelligence for Health.
iii

https://www.itu.int/en/ITU-T/focusgroups/ai4h/Documents

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