UPDATE G20 Topic A: Development of Smart Cities for Integration within the Digital World - IMUNA
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UPDATE G20
PA P E R
Topic A: Development of Smart
Cities for Integration within the
Digital World
Topic B: Access to the Global
2 0 2 1 Digital Economy in Developing
Markets
Email: info@imuna.org
Phone: +1 (212) 652-9992
Web: www.nhsmun.org
Secretary-General Dear Delegates,
Maura Goss
Welcome to NHSMUN 2021! I’m honored to be your Assistant Director for the Group of Twenty
Directors-General
(G20) for Session I. This will be my first year as a part of the NHSMUN staff and my second year
Rose Blackwell
attending the conference. Last year, I was a delegate in the Council of the European Union. As a
JJ Packer
completely new committee within NHSMUN, I cannot be more excited for the wonderful memo-
Conference Services ries we surely will make together and for the lively debate.
Hannah Lilley
Alisa Wong Originally from Calgary, Alberta, I was recommended to join the Model United Nations team by a
Delegate Experience good friend in my first year of high school. Since then, it has become an integral part of my high
Akanksha Sancheti school and university experience. With over twenty conferences under my belt, I have come out a
John Wood little bit wiser with regard to international politics and with many unforgettable experiences with
my fellow MUN-ers. I’ve made friends from around the world and have had the opportunity to
Global Partnerships
Sofia Fuentes visit Toronto and New York, amongst many other places. I hope to bring my experience as your
Salmaan Rashiq Assistant Director and help guide such a world-class debate at NHSMUN. As a first-year Engineer-
ing student at the University of Toronto, I’m also excited to see what new adventures await my new
Under-Secretaries-
General team and me! When I’m not buried in MUN research, I draw, procrastinate through gaming, and
Jon Basile film dance covers.
Ankita Bhat
With the state of the world ever-changing, measures to achieve sustainable, resilient smart cities
Beatriz Circelli
Caitlyn Johnson are rapidly evolving. The COVID-19 pandemic is at the forefront of current-day crises, and as
Patrick Leong daily life stands to be forever changed, innovative and accessible solutions are more necessary than
Kathy Li ever. Both governments and citizens stand to benefit from continued participation in the creation
Pablo Maristany de of smart cities that use technology to better equip themselves for unexpected challenges. Exciting
las Casas breakthroughs in AI, blockchain, and other technologies in the last year provide further potential
McCall Olliff to realize plans for smart city projects. At the same time, more questions arise concerning adequate
Abolee Raut governance and use of the generated information. These are key debates that need to be resolved
Pranav Reddy
to lay down the foundation for the future of smart cities.
Clare Steiner
Ann Williams As citizens, all of the topics you will be discussing in committee are pertinent to our future. As
delegates, you will have the opportunity to share your insight on the most relevant issues as we head
into a new decade. I hope this update paper will provide you with more food for thought and help
you conclude your research. If you have any questions, please email us at any time, and I anxiously
await seeing you in committee!
Sincerely,
Lisa Qian
lisa.qian@imuna.org
Group of Twenty
Session I
Email: info@imuna.org
Phone: +1 (212) 652-9992
Web: www.nhsmun.org
Secretary-General Dear Delegates.
Maura Goss
Welcome to NHSMUN! I’m Andrew, and I am thrilled to be your Assistant Director for the Group
Directors-General
of Twenty (G20) for Session II. This is my first year staffing NHSMUN, and I’m honored to be
Rose Blackwell
working with the new G20 committee. I hope you all take the time to read the update papers and
JJ Packer
engage with our exciting topics. This year may look a little different than NHSMUN in the past, but
Conference Services I have no doubt that our committee will be passionate, fun, and substantive.
Hannah Lilley
Alisa Wong I was born and raised in Manhattan Beach, California. I’ve been deeply involved with Model UN
Delegate Experience throughout high school and through Model UN, I’ve met some of my closest friends and traveled
Akanksha Sancheti to debates in Montreal, Paris, Washington DC, Chicago, and Baltimore. I also chaired and worked
John Wood on the secretariat for my high school’s local conference. MUN aside, I play water polo and compete
on a swim team. I also love skiing, hiking, swimming, and diving. Currently, I’m a freshman at Rice
Global Partnerships
Sofia Fuentes University studying Mathematical Economic Analysis and Political Science.
Salmaan Rashiq This update paper explores some of the recent developments in the digital economy. In your prepa-
Under-Secretaries- ration for debate, I hope you familiarize yourselves with some of the many potential opportunities
General and challenges of the topic at hand. In addition to the background guide, this brief update aims to
Jon Basile
convey the importance and relevance of expanding equitable access to the digital economy. As you
Ankita Bhat
brainstorm inventive solutions for debate, I challenge you to dive deeper into your research and
Beatriz Circelli
Caitlyn Johnson seek a better understanding of how increasing access to the digital economy could shape the liveli-
Patrick Leong hoods of millions of people. People and businesses are increasingly relying on e-commerce and
Kathy Li online platforms to exchange goods and services. Covid-19 is only increasing this dependency. It is
Pablo Maristany de more important than ever to ensure that the digital economy is built to equitably serve the world.
las Casas
McCall Olliff If you have any questions about debate, or anything else, send me an email! Roshan, Anikait, Lisa,
Abolee Raut and I are truly here as resources to you. Whether you’re new to Model UN or you’re a seasoned
Pranav Reddy veteran, I’m confident that this debate will have something for everyone. I look forward to seeing
Clare Steiner all of you participate in a lively and energetic debate!
Ann Williams
Sincerely,
Andrew Cormack
andrew.cormack@imuna.org
Group of Twenty
Session II
G20 4| Table of Contents Table of Contents Development of Smart Cities for Integration within the Digital World 5 Access to the Global Digital Economy in Developing Markets 11 Works Cited 17
G20
NHSMUN 2021
Topic A:
Development of Smart Cities for Integration within the Digital World
Photo Credit: ISA Internationales StadtbauatelierTopic A: Development of Smart Cities for Integration within the Digital World 6| Introduction Since 2007, over half of the world’s population has been living in urban centers. That number is ex- pected to increase to 60 percent by 2030. In the backdrop of a rapidly urbanizing world, the presence of slums and inadequate and overburdened infrastructure and services continue to increase.1 With the recent impacts of COVID-19, the need to fulfill the UN Sustainable Development Goal (SDG) 11: Sustainable Cities and Communities is more relevant than ever.2 Smart city projects seek to use new technological solutions to enhance and improve citizens’ living standards and improve infra- structure and better governance. 2020 has seen both breakthroughs and setbacks in the global effort for smart city development. Established last June, the G20 Global Smart Cities Alliance on Technol- ogy Governance has officially launched in 36 cities across 22 countries, developing and implement- ing policies for smart city projects to ensure privacy, accessibility, accountability, and more.3 Other programs such as the United Smart Cities program for sustainability through Information Commu- nication Technologies (ICTs) and the UN “United for Smart Sustainable Cities” continue to meet and develop metrics for successfully integrating new technologies.4 At the same time, the COVID-19 pandemic has brought unexpected challenges in managing budgetary and economic concerns and responding to shifting norms in daily life.5 As a leader in developing frameworks for sustainable and smart city infrastructure, the G20 must consider the latest developments and create comprehensive response guidelines that contribute to creating sustainable living through smart city projects. COVID-19 and Other Crisis Responses complexes, and social housing dominate the neighborhood as The COVID-19 pandemic has dramatically accelerated the a reflection of the renewed focus on sustainability and so- need for accessible, digital solutions that remove the need for cialization.8 In Detroit, Michigan, in the United States, there human-to-human close contact. Although alternatives such as have been investments in affordable housing and better public work-from-home and flexible officing have risen in popular- infrastructure to fulfill a “twenty minute rubric.”9 Cities have ity, the pandemic has forced cities to approach a rapid shift in also begun to emphasize infrastructure that increases sustain- the way of city planning and infrastructure.6 One of the most ability in the long term. The city of Rotterdam in the UK important concepts is the 15-minute city, an approach focused employs Chief Resilience Officers whose primary responsi- on removing the need for long-term commutes and improv- bility is to take input from citizens and lessons learned from ing access to basic amenities and other aspects of social life.7 early COVID-responses to better judge which city develop- The Minimes barracks within Paris, France, is a project un- ment projects should be prioritized.10 Across the board, there der the 15-minute city concept where bike lanes, community has been a consensus about focusing on digital expansion and 1 “Cities–United Nations Sustainable Development,” United Nations Sustainable Development Goals, accessed December 2, 2020, https:// www.un.org/sustainabledevelopment/cities/. 2 “THE 17 GOALS | Sustainable Development,” United Nations Department of Economic and Social Affairs, accessed January 19, 2021, https://sdgs.un.org/goals. 3 “Intro,” G20 Global Smart Cities Alliance, accessed December 2, 2020, https://globalsmartcitiesalliance.org/. 4 “United Smart Cities (USC),” United Nations Sustainable Development Goals Partnership Platform, accessed December 2, 2020, https:// sustainabledevelopment.un.org/partnership/?p=10009. 5 “Cities–United Nations Sustainable Development.” 6 Craig Donaldson and Victoria Ticha, “How COVID-19 Could Accelerate the Rise of Smart Cities,” UNSW Newsroom, November 11, 2020, https://newsroom.unsw.edu.au/news/business-law/how-covid-19-could-accelerate-rise-smart-cities. 7 Donaldson and Ticha, “How COVID-19 Could Accelerate the Rise of Smart Cities.” 8 Feargus O’Sullivan and Laura Bliss, “The 15-Minute City—No Cars Required—Is Urban Planning’s New Utopia,” Bloomberg, November 12, 2020. https://www.bloomberg.com/news/features/2020-11-12/paris-s-15-minute-city-could-be-coming-to-an-urban-area-near-you. 9 O’Sullivan and Bliss, “The 15-Minute City—No Cars Required—Is Urban Planning’s New Utopia.” 10 Sarah Wray, “Analysts Predict 26 Smart Cities by 2025 – from Zero Today,” Cities Today, November 6, 2020, https://cities-today.com/ analysts-predict-26-smart-cities-by-2025-from-zero-today/.
Topic A: Development of Smart Cities for Integration within the Digital World
|7
energy efficiency. Investments in no-touch transactions for South Korea has been criticized for its quarantine-tracking
areas such as waste management and traffic control have also program, which mandates all new arrivals must download
been a primary focus to remove the human element impact- a government app that tracks their location and includes a
ing the deliverance of basic services.11 This has translated into tracking wristband that cannot be removed.17 These measures
an increase in smart city projects in 2020 by 14 percent and a came after reports of people breaking quarantine by leaving
forecasted total increase in ICT spending of USD 124 billion, their phones at home; however, human rights groups have ar-
which is likely to stay the course despite budget shortfalls in gued that the wristband, which tracks a person’s location at all
other areas.12 In a survey by the International Data Corpora- times, violates privacy rights.18 In the United Arab Emirates,
tion, 30 percent of respondents said they would continue us- the government ensures guideline compliance by using an AI
ing virtual government services post-crisis.13 In business, 60 system that allows police to identify those potentially infected
percent of responses said software development for products through thermal signatures and uses a camera to identify cars
and experiences would be a top priority for this and the next and individuals on the road without authorization.19 Though
year, along with other programs, including digital trust and the program has been effective in maintaining quarantine pro-
data insight.14 cedures, it has raised questions regarding personal privacy.20
As the situation continues to develop, cities and countries are Ex-CIA official Douglas London has voiced these concerns
also beginning to implement new digital solutions in response of government control and surveillance abuse in the face of
to COVID-19. The city of Las Vegas, Nevada, United States, potential emergency measures from the American govern-
has begun utilizing data-driven analytics to support traffic op- ment.21 New technology such as thermal sensors and facial
erations. Data from 60,000 vehicles in the region and other recognition software gives watchers far greater capabilities in
sources are collected, put through machine learning and anal- terms of surveillance measures, which some critics argue do
ysis to report traffic signal performance, and create better tim- not increase safety but further encroach on personal privacy.22
ing plans after the pandemic changed traffic volumes.15 Other In addition, there are fears that these increased government
cities such as Boston, Massachusetts, have created open-ac- powers give precedence to future measures, and there will be
cess data dashboards to deliver daily statistics breakdowns little chance of recovering these lost rights.23 In Singapore,
and relevant local information to its residents, providing up- critics have accused pandemic control measures such as in-
dates on COVID-19 case data and new local responses and creased surveillance measures and location tracking of en-
restrictions.16 Although successful, certain COVID response croaching on privacy and endangering the public.24 Likewise,
measures have been met with backlash. The city of Seoul in Israel’s Prime Minister Benjamin Netanyahu has been accused
11 “Experts: Smart City Work Should Stay the Course Amid Crisis,” Government Technology, accessed December 2, 2020, https://www.
govtech.com/fs/infrastructure/Experts-Smart-City-Work-Should-Stay-the-Course-Amid-Crisis.html.
12 Siva Sooryaa Muruga Thambiran, “How COVID Accelerated Smart City Development,” GCN, October 15, 2020, https://gcn.com/
articles/2020/10/15/smart-cities-post-covid.aspx.
13 Stephanie Kanowitz, “How COVID Is Driving Smart City Plans, Budgets,” GCN, November 12, 2020, https://gcn.com/arti-
cles/2020/11/12/smart-city-budgets.aspx.
14 Kanowitz, “COVID Drives Smart City Planning.”
15 Kanowitz, “COVID Drives Smart City Planning.”
16 “Emergency Response,” Smart Cities Connect, April 6, 2020, https://smartcitiesconnect.org/tag/emergency-response/.
17 Aaron Holmes, “South Korea Is Relying on Technology to Contain COVID-19, Including Measures That Would Break Privacy Laws
in the US - and so Far, It’s Working,” Business Insider, May 2, 2020, https://www.businessinsider.com/coronavirus-south-korea-tech-contact-
tracing-testing-fight-covid-19-2020-5.
18 Holmes, “South Korea COVID-19 Measures.”
19 Thambiran, “COVID Accelerated Smart City Development.”
20 Thambiran, “COVID Accelerated Smart City Development.”
21 Mike Giglio, “Would You Sacrifice Your Privacy to Get Out of Quarantine?” The Atlantic, April 24, 2020, https://www.theatlantic.com/
politics/archive/2020/04/coronavirus-pandemic-privacy-civil-liberties-911/609172/.
22 Giglio, “Would You Sacrifice Privacy for Safety?”
23 Giglio, “Would You Sacrifice Privacy for Safety?”
24 David Pierson, “Singapore Says Its Coronavirus App Helps the Public. Critics Say It’s Government Surveillance,” Los Angeles Times,
March 24, 2020, https://www.latimes.com/world-nation/story/2020-03-24/coronavirus-singapore-trace-together.Topic A: Development of Smart Cities for Integration within the Digital World
8|
of increasing his personal power as the government rolls final AI type is the “city brain,” most commonly featured in
out cell phone tracking powers under emergency measures.25 current smart city planning.31 An AI platform could efficiently
Countries like South Korea and Iran are facing backlash due analyze the large amounts of data collected in the city daily
to cell phone data tracking and other ways of location track- and generate an optimized response.32 In addition, machine
ing that bring up concerns of loss of privacy and potential learning allows the AI to improve its algorithm through re-
government abuse of power.26 As more data collection for peated use, further refining results.
COVID-19 occurs, new questions surrounding data security
Specifically, AI can be used within security and traffic surveil-
and breach of privacy remain to be addressed.27
lance systems, compiling data to create traffic maps, adjust
optimal routes, or spot unusual activity.33 The city of Am-
AI Development
sterdam has smart cameras on waste collection vehicles and
As a crucial technological development, AI can greatly im- volunteer citizens, which collect information about the envi-
prove smart city management. It is expected that 30 percent ronment and can spot hazards or pinpoint roads that need
of smart city projects will utilize AI in some form.28 In gen- to be fixed.34 AI can also be implemented in government
eral, AI technology can be categorized into three sections.29 services such as waste disposal or public transit, optimizing
The first revolves around the idea of an “artifact” in use. A traffic routes and streamlining the user experience.35 Dubai
representative example is autonomous cars. This type of AI in the United Arab Emirates has implemented sensors that
technology gathers specific information from the surround- monitor the condition of bus drivers and has successfully led
ing environment to make limited choices based on the data. If to a five percent reduction in accidents caused by exhaustion
successful, services like autonomous cars could improve city and fatigue.36 In general, machine learning allows AI to pro-
structuring, be more environmentally friendly, and decrease cess large amounts of data and give recommendations for city
accident rates. However, the implementation and reliance on governance according to real-time information. This can be
now-simplified services pose potential negative impacts on so- useful in many future projects for sustainability and resilience.
ciety that remain unexplored.30 The second type of AI is rep- One of the most important applications of AI is in climate
resented by robots, including drones, androids, and nanobots. change projects. As a part of city planning, AI systems can
This type of AI is more capable of collecting information better predict areas susceptible to natural disasters and loca-
about its surroundings and interacting with its environment. tions where supportive infrastructure is needed.37 In Calgary,
However, it also requires more technological development, es- Canada, an AI platform developed by the NGO Evergreen is
pecially in mimicking human thought processes. The not yet currently being tested. This system can identify which land-
mature programming means more needs to be input into such scapes are the most vulnerable to temperature increases and
projects before being applied to smart cities. The third and what infrastructure causes unnaturally hot surroundings and
25 Pierson, “Singapore Coronavirus App Controversy.”
26 Pierson, “Singapore Coronavirus App Controversy.”
27 Thambiran,“COVID Accelerated Smart City Development.”
28 Thambiran,“COVID Accelerated Smart City Development.”
29 Federico Cugurullo, “Urban Artificial Intelligence: From Automation to Autonomy in the Smart City,” Frontiers in Sustainable Cities 2, (July
2020): 1-38, https://doi.org/10.3389/frsc.2020.00038.
30 Cugurullo, “Urban Artificial Intelligence.”
31 Cugurullo, “Urban Artificial Intelligence”
32 Vikram Singh Bisen, “How AI Can Be Used in Smart Cities: Applications Role & Challenge,” Medium, September 9, 2020, https://
medium.com/vsinghbisen/how-ai-can-be-used-in-smart-cities-applications-role-challenge-8641fb52a1dd.
33 Bisen, “Using AI in Smart Cities.”
34 David Pringle, “AI Opens New Avenues for Smart Cities,” Science Business, October 26, 2020, https://sciencebusiness.net/news/ai-
opens-new-avenues-smart-cities.
35 Bisen, “Using AI in Smart Cities.”
36 Nick Graham and Monika Sobiecki, “Artificial Intelligence in Smart Cities,” Business Going Digital, August 10, 2020, http://www.business-
going.digital/artificial-intelligence-in-smart-cities/.
37 “Evergreen Unveils AI Solution That Enables Municipalities to Better Evaluate Infrastructure Projects, Mitigate Climate Risks and Invest
Effectively,” Evergreen, October 28, 2020, https://www.globenewswire.com/news-release/2020/10/28/2116238/0/en/Evergreen-unveils-
AI-solution-that-enables-municipalities-to-better-evaluate-infrastructure-projects-mitigate-climate-risks-and-invest-effectively.html.Topic A: Development of Smart Cities for Integration within the Digital World
|9
use that information to recommend adaptive actions. In the In 2019, the data market generated USD 15 billion, and it is
future, it is also expected to be scaled for use on other projects expected to generate USD 68 billion by 2025.45 Data creation
related to climate change.38 Other solutions, such as Google’s is expected to hit 163 zettabytes—over 95 percent of which
Deepmind, have created programs to identify and estimate will be real-time IoT data generated by technology like smart-
the carbon footprint of emitters and optimize solutions to phones and sensors within smart city projects.46 As of 2020,
reduce energy use.39 Such applications can be used in tandem big data programs have trended towards offering data as a
with other strategies to reduce carbon emissions and achieve Service (Daas), where data analysis services as the basis for
the 2016 Paris Agreement’s goals.40 However, AI solutions other technological solutions.47 When paired with software, it
require vast supporting infrastructure, such as city-wide sen- is generally used to track progress and output results that can
sors and new partnerships with the private sector to develop be used to better the city.48 In addition, cities can employ tech-
better AI technology. They are more vulnerable to malicious niques like cloud storage and edge computing to minimize the
cyberattacks from any party looking to access the collected amount of data that needs to be stored.49 An example of big
information.41 Recent cyberattacks in Baltimore and Atlanta data analytics’ successful implementation may be found in Es-
impacted municipal operations and paralyzed the systems.42 tonia, which has hosted a permission-based decentralized da-
On the other hand, security concerns can also arise from the tabase for its health records since 2016.50 This has streamlined
improper use or abuse of data collected, violating the right of the treatment experience and allowed citizens to track access
personal privacy.43 Delegates must take into account ethical to their data and flag suspicious uses.51 In the latest forum, the
considerations and the debate over whether machines can ap- EU-funded Smart Cities and Community Lighthouse project
proach and consider ethical dilemmas.44 discussion centered around using big data analysis for energy
management and urban data collection.52 Valencia, Spain, will
Big Data Management provide a global data-sharing platform and develop a policy
framework for health emergency management to the Interna-
As smart cities deal with a large influx of data each day, proper
tional Telecommunications Union.53 These implementations
use of data is one of the biggest hurdles to overcome both
provide an important first step in preparing for the boom in
technologically and politically. Big data revolves around “3
data generation, as thousands of sensors and collectors may
Vs”—volume, velocity, and variety. In addition, two other
be implemented per city.
concepts that have risen to priority are veracity, or the accu-
racy of data, and the data’s value. By 2025, the market for The focus surrounding adequate big data management is
big data is expected to grow 4.5 times from what it is today. building policy frameworks to address the potential uses of
38 “Evergreen Unveils AI Solution.”
39 Lauren Crow, “Tech Must Help Combat Climate Change, Says Sundar Pichai,” The Economist, November 17, 2020, https://www.econo-
mist.com/the-world-ahead/2020/11/17/tech-must-help-combat-climate-change-says-sundar-pichai.
40 Crow, “Tech Combats Climate Change.”
41 Bisen, “How AI Can Be Used in Smart Cities.”
42 Adie Tomer, “Artificial Intelligence in America’s Digital City,” Brookings, October 25, 2019, https://www.brookings.edu/research/artifi-
cial-intelligence-in-americas-digital-city/.
43 Tomer, “Artificial Intelligence in America’s Digital City.”
44 Cugurullo, “Urban Artificial Intelligence.”
45 “The Future of Big Data,” Business Matters, November 26, 2020, https://bmmagazine.co.uk/business/the-future-of-big-data/.
46 Timothy King, “IDC: Data Creation to Reach 163 Zettabytes by 2025,” Best Data Management Software, Vendors and Data Science
Platforms, April 11, 2017, https://solutionsreview.com/data-management/idc-data-creation-to-reach-163-zettabytes-by-2025.
47 Business Matters, “The Future of Big Data.”
48 Gilad David Maayan, “How Big Data Impacts Smart Cities,” DATAVERSITY, April 22, 2020, https://www.dataversity.net/how-big-
data-impacts-smart-cities/.
49 Maayan, “How Big Data Impacts Smart Cities.”
50 Connor Blenkinsop, “Q&A: Big Data’s Role in Medicine, Supply Chains and Smart Cities,” Cointelegraph, https://cointelegraph.com/
news/qa-big-datas-role-in-medicine-supply-chains-and-smart-cities.
51 Blenkinsop, “Q&A: Big Data’s Role in Medicine, Supply Chains and Smart Cities.”
52 “Smart Cities Have Responded to COVID-19,” Smart Cities Marketplace, accessed December 2, 2020, https://eu-smartcities.eu/index.
php/news/smart-cities-have-responded-covid-19.
53 “Smart Cities Have Responded to COVID-19.”10|T opic A: Development of Smart Cities for Integration within the Digital World data and safeguard against misuse. One key aspect is the ef- of exploration in the road to building a sustainable city. With fective education of relevant personnel and integration into the rapid growth of artificial intelligence and more opportuni- the general city system.54 In conjunction with keeping open ties for city implementation, governments must consider the accountability on big data, governments need to create proto- best investments while being mindful of infrastructure and cols for separating proper and improper use of data.55 This is policy needs. At the same time, ethical dilemmas surrounding especially important with public-private partnerships; govern- the use of new technology require thorough testing and de- ments should be maintaining the lead role during cooperation bate to be used progressively. With the situation surrounding and look to safeguard the public trust.56 In the Personal Data COVID-19, the push for digitalization is stronger than ever. Protection in Smart Cities report published in 2020, research- Countries should look to successful and unsuccessful cases of ers argue for the importance of privacy protection under run- digital pandemics responses and re-evaluate current policy fo- ning data analysis programs.57 They stress the need to inform cuses. Members must exercise creativity and an understanding users of data collection and request consent, something that of the bigger picture to develop a solution for all. is currently realized under the GDPR in the EU.58 One other potential implementation of these guidelines is the model put forth by Garcia Font, also known as SocialBlock.59 This framework emphasizes users’ ability to regain control of what data they consent to be collected and segregated data to pre- vent misuse.60 Additionally, the decentralized storage of data reduces the cost for infrastructure and protects against the total collapse of the system.61 However, there still exists a lack of global policy frameworks on effective and ethical big data management. Conclusion As word leaders, the G20 is in a unique position of being able to influence the world with its decisions. It is the responsibility of the forum to explore the multi-faceted potential of smart city projects. At the same time, the forum must keep in mind the vital role of local governments and the private sector, and it must remain vigilant in protecting the public interest and citizen’s rights. The lack of comprehensive data management and usage policies remains an area for growth and collabora- tion. New technological advancements and increasing invest- ment into ICT and smart city integration open up many fields 54 Mickey McCarter, “Smart Cities Connect 2020: Resolving Big Data Challenges Key to Smart City Success,” Technology Solutions That Drive Government, December 6, 2019, https://statetechmagazine.com/article/2020/10/smart-cities-connect-2020-resolving-big-data-chal- lenges-key-smart-city-success-0. 55 McCarter, “Resolving Big Data Challenges.” 56 McCarter, “Resolving Big Data Challenges.” 57 Dylan Tarin, “Privacy and Big Data in Smart Cities,” The Smart City Journal, January 28, 2015, https://www.thesmartcityjournal.com/ en/technology/341-privacy-and-big-data-in-smart-cities. 58 Tarin, “Privacy and Big Data in Smart Cities.” 59 Universitat Oberta de Catalunya, “SocialBlock: Technology That Could Improve Data Security in Smart Cities,” Tech Xplore, October 19, 2020, https://techxplore.com/news/2020-10-socialblock-technology-smart-cities.html. 60 Oberta de Catalunya, “SocialBlock: Improving Data Security.” 61 Oberta de Catalunya, “SocialBlock: Improving Data Security.”
G20
NHSMUN 2021
Topic B:
Access to the Global Digital Economy in Developing Markets
Photo Credit: Pete Linforth12|T opic B: Access to the Global Digital Economy in Developing Markets
Introduction
Recent global developments have dramatically driven the growth of the digital economy. Techno-
logical advances in global digital networks have facilitated a growing dependence on internet econo-
mies.1 The rollout of 5G wireless service has the potential to reshape how businesses manage their
technology—everything from assembly lines to agriculture.2 Furthermore, industry experts predict
that 5G providers will offer a broader range of internet services with a decreased reliance on cur-
rent infrastructure.3 The recent resurgence of COVID-19 infections and disruptions continue the
virus’s effects on global economies.4 Financial experts’ analysis indicates that the pandemic has driven
companies and consumers to conduct more digital platforms. Before the pandemic, digital consump-
tion was already on the rise, as it was powered by evolution in consumer preference, demographic
changes, and new technologies. COVID-19 has accelerated these trends. As businesses are forced to
scale back their physical operations, many have resorted to e-commerce and digital markets.5 Busi-
nesses with major e-commerce functions, including Amazon, eBay, Apple, Alibaba, and Walmart,
have witnessed sizable growth attributable to the pandemic.6 The spread of COVID-19 has provided
a push to e-commerce activities as customers shift toward online platforms for ordering essential and
frivolous items amid lockdown and social distancing measures.7 This growth has widened the digital
divide between wealthy countries and the developing world.8
Delegates of the Group of Twenty will need to bridge this Physical Infrastructure in the Digital Economy
gap with solutions that effectively address the digital econ- Accessing digital markets demands a complex system of
omy’s shortcomings in the developing world. Increased de- broadband and high-speed internet infrastructure. This of-
pendence on digital technology has driven some countries to ten serves as a major barrier against expanding internet ac-
implement new laws and regulations to ensure that their citi- cessibility and promoting access to the digital economy. New
advancements in internet service, such as the rollout of 5G,
zens can conduct business online knowing that their personal
contribute to an ever-evolving demand for new facilities and
information is safe and their privacy is respected.9 Countries
equipment.10 Involvement in the digital economy is centered
must also confront the growing human rights abuses that have
in wealthy, developed countries with the resources to con-
accompanied the rise of the internet economy. Now is the struct complex digital infrastructure. Countries that lack these
time to develop policies and solutions that create a more equi- facilities and resources cannot compete in the global digital
table and sustainable digital economy. economy.
1 James Pomeroy, “Pandemic Hastens Digital Economy,” HSBC Group, September 2020, https://www.hsbc.com/insight/topics/pandem-
ic-hastens-digital-economy.
2 James Rundle, “5G’s Early Business Adopters Explore New Generation of Wireless Applications,” The Wall Street Journal, November 2020,
https://www.wsj.com/articles/5gs-early-business-adopters-explore-new-generation-of-wireless-applications-11605027402.
3 Rundle, “5G’s Early Business Adopters Explore New Generation of Wireless Applications.”
4 Pomeroy, “Pandemic Hastens Digital Economy.”
5 Pomeroy, “Pandemic Hastens Digital Economy.”
6 “Global E-Commerce Market Report 2020: Major Players are Alibaba, Amazon, Apple, B2W Companhia Digital, Ebay, Groupon, Ra-
kuten, Walmart, Zalando,” Cision PR Newswire, October 20, 2020, https://www.prnewswire.com/news-releases/global-e-commerce-market-
report-2020-major-players-are-alibaba-amazon-apple-b2w-companhia-digital-ebay-groupon-rakuten-walmart-zalando-301155661.html.
7 “Global E-Commerce Market Report 2020.”
8 Douglas Broom, “Coronavirus has Exposed the Digital Divide like never Before,” World Economic Forum, April 22, 2020, https://www.
weforum.org/agenda/2020/04/coronavirus-covid-19-pandemic-digital-divide-internet-data-broadband-mobbile/.
9 “New proposed law to better protect Canadians’ privacy and increase their control over their data and personal information,” Government
of Canada, November 17, 2020, https://www.canada.ca/en/innovation-science-economic-development/news/2020/11/new-proposed-
law-to-better-protect-canadians-privacy-and-increase-their-control-over-their-data-and-personal-information.html.
10 Parvez Ifitkhar, “Pakistan’s Digital Infrastructure Must Get Better,” The Express Tribune, August 9, 2020, https://tribune.com.pk/sto-
ry/2258766/pakistans-digital-infrastructure-must-get-better.Topic B: Access to the Global Digital Economy in Developing Markets
|13
Pakistan’s rapidly growing population of 222 million people is connectivity.18 Taiwan, which enjoys the fastest, most reliable
regarded as a major market for the digital economy.11 The on- internet, owes its robust e-commerce activity to a policy that
going pandemic has led to school and business closures that has enabled the island to build world-class internet infrastruc-
necessitate the widespread use of digital tools and services.12 ture.19 Over the past 20 years, Taiwan has invested significant
This dramatic digital shift has highlighted the country’s colos- public resources into constructing internet infrastructure, fo-
sal shortfalls in internet connectivity.13 Students and business cused on connectivity in remote rural areas, and implement-
owners have organized large-scale demonstrations to protest ed digital skills courses in the public education curriculum.20
their government’s lack of investment in developing digital in- COVID-19 and recent business trends have spotlighted the
frastructures.14 Pakistan is not unique in its internet connectiv- limited internet connectivity that limits access to the digital
ity challenges. The World Economic Forum recently reported economy in Pakistan and other developing countries.21
that only 47 percent of households in developing countries
The rollout of 5G technology could be a major step in pro-
have an internet connection.15 Of those with internet access,
moting e-commerce activity in developing countries. 5G
only a fraction have access to consistent, high-speed internet.16 promises faster, more reliable internet connectivity to support
Pakistan’s internet connectivity issues demand government in- a growing digital economy. Telecom policy experts believe
tervention. Pakistan’s head of Siemens Telecom has written that future benefits include “smart city services through sup-
that he believes “[t]he investment required in optic fibres [to port for... education, e-health, e-government, mobile bank-
be] very high and the return on investment terribly slow” and ing and payments with various e-business applications” and
as it currently stands, “investment has to come entirely from “logistics, design, and inventory management.”22 These forms
the private sector.”17 The government does not invest resourc- of “soft infrastructure” improve the ease of doing business
es into public sector spending on digital infrastructure and has digitally.23 Furthermore, experts hope that 5G could become
not established mechanisms or incentives to encourage private a viable “substitute for an expensive fibre-optic cabled broad-
telecom construction. Unfortunately, private businesses aren’t band infrastructure.”24 Though most high-speed 5G towers
incentivized to build telecom infrastructure without govern- currently depend on fiber optic cables, without it, 5G still
ment subsidies because profits from such investments would provides better connectivity than previous generations of
be realized far into the future. Furthermore, fiber optic cables network systems. 5G has the ability to provide lower band
and internet infrastructure require large tracts of land for data frequency capable of transmitting through physical obstacles
centers, underground cables, and server facilities. This is often with better range. This could be pivotal in rapidly developing
achieved by government approval and eminent domain, em- effective internet infrastructure in regions where fiber optic
powering a government to take private property and convert it cables aren’t economically viable.25 Delegates in the Group
into public use to assist internet providers that are improving of Twenty will need to address infrastructure shortcomings
11 “Population Growth Pakistan,” The World Bank, November 2020, https://data.worldbank.org/indicator/SP.POP.GROW?locations=PK.
12 Shah Meer Baloch and Zafar Musyani, “Pakistan’s Great Digital Divide,” The Diplomat, July 2020, https://thediplomat.com/2020/07/
pakistans-great-digital-divide/
13 Baloch, “Pakistan’s Great Digital Divide.”
14 Baloch, “Pakistan’s Great Digital Divide.”
15 Broom, “Coronavirus has Exposed the Digital Divide Like Never Before.”
16 Broom, “Coronavirus has Exposed the Digital Divide Like Never Before.”
17 Ifitkhar, “Pakistan’s Digital Infrastructure Must Get Better.”
18 Ifitkhar, “Pakistan’s Digital Infrastructure Must Get Better.”
19 “Taiwan - Country Commercial Guide,” United States International Trade Administration, September 24, 2020, https://www.trade.gov/
knowledge-product/taiwan-e-commerce.
20 “Broadband for Villages and Broadband for Tribes,” Taiwan National Communications Commission, June 5, 2009, https://www.ncc.
gov.tw/english/news_detail.aspx?site_content_sn=226&is_history=0&pages=1&sn_f=457.
21 Ifitkhar, “Pakistan’s Digital Infrastructure Must get Better,”
22 Simon Forge and Khuang Vu, “Forming a 5G strategy for Developing Countries: A Note for Policymakers,” Telecommunications Policy 44,
no. 7 (August 2020), https://www.sciencedirect.com/science/article/abs/pii/S0308596120300677.
23 Forge and Vu, “Forming a 5G strategy for Developing Countries: A Note for Policymakers.”
24 Forge and Vu, “Forming a 5G strategy for Developing Countries: A Note for Policymakers.”
25 Forge and Vu, “Forming a 5G strategy for Developing Countries: A Note for Policymakers.”14|T opic B: Access to the Global Digital Economy in Developing Markets
to promote developing countries’ participation in the digital Traffickers take advantage of digital currencies and anony-
economy. mous online services that allow them to go undetected.34 The
committee will need to balance the protection of data privacy
Human Rights in the Digital Economy with adequate regulation that prevents illicit activities.
The rise of the digital economy can create unprecedented Despite allowing new forms of exploitation and abuse, the
economic growth and expansion.26 Unfortunately, it has given digital economy may also be key in fighting modern human
way to new forms of exploitation and abuse.27 Despite its ben- rights violations. Criminals may use digital technologies to
efits, increased dependence on the digital economy has many avoid detection, but their activities create digital footprints
negative effects. Sexual abuse, trafficking, crime, and unethical and caches, large bulks of stored browser data, that can help
labor practices are some of the many forms of modern ex- guide law enforcement. Advancements in data analytics, image
ploitation that have grown within the internet economy.28 Del- processing, and computing power are enabling investigators
egates should seek to protect human rights through their ef- to more quickly apprehend criminals in the digital economy.35
forts to expand the digital economy into developing markets. United States-based non-governmental organization (NGO)
In addition to revolutionizing everything from retail business- Thorn has developed a digital software that has identified over
es to supply chain management, the digital economy has also 16,000 traffickers and supported 62,000 investigations since
transformed how bad actors commit crime and abuse. The in- its launch.36 The software empowers investigators from coun-
ternet economy has permanently changed the way human traf- tries around the world to process millions of data points and
fickers carry out their business.29 This transformation has only has reduced investigation time by 67 percent for law enforce-
been accelerated by COVID-19 and renewed dependence on ment partners.37 The Head of Future Networks and Technol-
the internet economy.30 Victims of trafficking are now “adver- ogy of the World Economic Forum believes that “natural lan-
tised” and “sold” on digital marketplaces that resemble digital guage processing and entity resolution combined with flexible
retail services like eBay and Craigslist.31 Human trafficking is a link-analysis software mean investigators can build up a single,
USD 150 billion industry that has seen unprecedented growth centralized knowledge graphs for a case or network of crimi-
due to new digital platforms like online escort services, dating nal gangs.”38 They can also use the technology to connect dots
websites, and encrypted internet messaging.32 It is extremely in an automated fashion, including between victims, phone
difficult for investigators and law enforcement to identify vic- numbers, transactions, flight records, or any other pieces of
tims when traffickers use digital tools to communicate with evidence.39 Since national borders don’t limit trafficking net-
encrypted messaging and exchange money anonymously.33 works, many criminal probes involve international investiga-
26 “Global E-Commerce Market Report 2020.”
27 Sona Movsisyan, “Human Trafficking In the Digital Age: Who Should be Held Accountable?” Michigan State University, 2020, https://
digitalcommons.law.msu.edu/cgi/viewcontent.cgi?article=1258&context=ilr.
28 “Global Estimates of Modern Slavery,” International Labor Organization, 2017, https://www.ilo.org/wcmsp5/groups/public/@dgre-
ports/@dcomm/documents/publication/wcms_575479.pdf.
29 Movsisyan, “Human Trafficking In the Digital Age: Who Should be Held Accountable?”
30 “Social Media-Based Trafficking on the Rise during Coronavirus Pandemic,” United Nations News, November 11, 2020, https://news.
un.org/en/story/2020/11/1077402.
31 Movsisyan, “Human Trafficking In the Digital Age.”
32 Kimberely Blasey, “Kids, Not Commodities: Proposing a More Protective Interpretation of the Child Sex Trafficking Statute for Vic-
tims and Defendants,” Washington and Lee Law Review 77, no. 2 (April 2020), https://search.proquest.com/docview/2399148022?account
id=194034.
33 David Balson and William Dixon, “How AI can Help Combat Slavery and Free 40 Million Victims,” The World Economic Forum, No-
vember 12, 2020, https://www.weforum.org/agenda/2020/11/how-ai-can-help-combat-modern-slavery/.
34 Balson and Dixon, “How AI can Help Combat Slavery and Free 40 Million Victims.”
35 Balson and Dixon, “How AI can Help Combat Slavery and Free 40 Million Victims.”
36 “Spotlight Impact Report,” Thorn, December 2020, https://spotlight.thorn.org/about.
37 Thorn, “Spotlight Impact Report.”
38 Balson and Dixon, “How AI can Help Combat Slavery and Free 40 Million Victims.”
39 Balson and Dixon, “How AI can Help Combat Slavery and Free 40 Million Victims.”Topic B: Access to the Global Digital Economy in Developing Markets
|15
tions with organizations including Interpol.40 Human rights mittee.
are of the utmost importance when considering digital growth
During the COVID-19 pandemic, the digital divide has be-
and it is imperative that delegates adequately address the ne-
come even more pronounced due to the renewed prevalence
cessity for regulations on an element of growth in developing
of a digital economy. Most importantly, it has exposed the dig-
countries that has the ability to expand without control.
ital weaknesses of small retailers.47 While large corporations
The Digital Divide have every advantage with a well-established digital presence,
small businesses and developing countries are taking the brunt
The digital divide is one of the biggest obstacles to increasing of the impact. The World Economic Forum posits that the
the internet economy and e-commerce participation.41 Stan- loss of small retailers from the chasm created by COVID-19
ford University defines the digital divide as “the growing gap will inhibit economic recovery in Africa, Latin America, and
between the underprivileged members of society, especially Southeast Asia.48 For example, Latin America is estimated to
the poor, rural, elderly, and handicapped portion of the popu- have a presence of 95 percent of small and medium-sized
lation who do not have access to computers or the internet; stores and traditional stores (such as corner shops and mom
and the wealthy, middle-class, and young Americans living in and pop shops), with upwards of 50 percent of food and bev-
urban and suburban areas who have access.”42 Expanding ac- erage sales coming from these stores.49 Such a large propor-
cess to the digital economy in developing states requires social tion of small businesses is dangerous in the face of an unfor-
change and adaptation.43 As technologies and internet capa- giving digital divide and economic recessions worldwide.
bilities rapidly develop, it can be challenging to stay competi-
tive in digital markets.44 Educating an entire population with As the digital economy continues to expand in developing
the technical skills needed to conduct business online can be countries, it is important to recognize that its growth often
a great challenge. UN Secretary-General Antonio Guterres reinforces societal inequality.50 The South African Institute
has been pushing to make “a New Social Contract [...] with a of International Affairs recently published a policy briefing
strong emphasis on education as the main equalizer” to pro- identifying the risk of “rolling out interventions that reinforce
mote “access to the new digital economy.”45 He also advo- what has become known as the digital divide, where groups
cated for a “new generation of social protection measures and of people (most often wealthier) have better access to data (in
measures related to fair labor markets” to govern the digital different forms, either mobile or in-home broadband).”51 To
economy.46 Bridging the digital divide and equalizing access to build a robust internet economy, it is essential to incorporate
the digital economy will be a major focus of the G20 com- digitally marginalized groups. People who live in rural areas
40 Balson and Dixon, “How AI can Help Combat Slavery and Free 40 Million Victims.”
41 Broom, “Coronavirus has Exposed the Digital Divide like never Before.”
42 “Digital Divide,” Stanford University, accessed January 19, 2021, https://cs.stanford.edu/people/eroberts/cs181/projects/digital-di-
vide/start.html.
43 Artem Alsufiev, Elena Shakina, and Petr Parshakov, “Rethinking the Corporate Digital Divide: The Complementarity of Technologies
and the Demand for Digital Skills,” Technology Forecasting and Social Change 162, (January 2021), https://www.sciencedirect.com/science/ar-
ticle/pii/S0040162520312312?via%3Dihub.
44 Alsufiev, Shakina, and Parshakov, “Rethinking the Corporate Digital Divide: The Complementarity of Technologies and the Demand
for Digital Skills.”
45 “Daily Briefing by the Office of the Spokesperson for the Secretary-General,” United Nations, November 24, 2020, https://www.
un.org/press/en/2020/db201124.doc.htm
46 “Daily Briefing by the Office of the Spokesperson for the Secretary-General.”
47 Carlos Brito, “COVID-19 Has Intensified the Digital Divide,” World Economic Forum, September 4, 2020, https://www.weforum.org/
agenda/2020/09/covid-19-has-intensified-the-digital-divide/.
48 Brito, “COVID-19 Has Intensified the Digital Divide.”
49 Luke Pototschnik et al., “COVID-19 Threatens to Shutter Latin America’s Small Businesses,” Boston Consulting Group, April 9, 2020,
https://www.bcg.com/publications/2020/covid-19-impacts-small-businesses-latin-america.
50 Richard Gevers and Sophie McManus, “Technology for Development and Inclusion in Africa,” Africa Portal, August 31, 2020, https://
www.africaportal.org/publications/technology-development-and-inclusion-africa/.
51 Gevers and McManus, “Technology for Development and Inclusion in Africa.”16|T opic B: Access to the Global Digital Economy in Developing Markets
who haven’t received a quality education, or don’t have access for bridging the digital divide in developing countries.
to internet infrastructure, are at a significant disadvantage.52 A
Kenyan company, M-Pesa, was established in 2007 by telecom Conclusion
giant Vodacom Group to offer mobile phone-based financing
Recent global developments have highlighted the importance
solutions.53 M-Pesa offers microfinance loans, free peer-to-
of sustainably increasing access to the digital economy. Limit-
peer money exchange, and savings accounts that have enabled
ed internet infrastructure and a growing digital divide have led
millions of people to access financial resources that they oth-
developing countries to have far less participation in the inter-
erwise would not have had. In the six months leading up to
net economy than more developed countries. Within develop-
September of 2020, users in Kenya and surrounding countries
ing countries, a growing digital divide is reinforced by wealth
exchanged an average of USD 20.5 billion every month.54 Ac-
and education. COVID-19 has only reinforced this inequity.
tive efforts by companies in Kenya to bridge the digital divide
Companies operating in developed countries can conduct
have paid clear dividends and provide a helpful example of
business digitally far more extensively than those in develop-
how decreasing the digital divide can have direct positive eco-
ing countries. G20 delegates will need to create thoughtful so-
nomic impacts.
lutions to bridge these divides equitably. Furthermore, the in-
The digital divide also exists between companies around the creased dependence on the digital economy has also exposed
world. To stay competitive, businesses have found it necessary some of its shortfalls. G20 delegates will need to find ways
to transition some of their operations into the digital econo- to protect digitally marginalized populations while protecting
my.55 Companies based in developing countries generally are privacy. The internet economy can increase global economic
further behind in their use of the internet economy. This is activity that will help support developing and developed coun-
increasingly becoming one of the key reasons that developing tries alike. The digital economy must operate in a way that
markets are dominated by international firms based in highly uplifts all people.
developed countries.56 Professors at Moscow’s National Re-
search University Higher School of Economics recently pub-
lished a paper concluding that “public authorities should take
into account the important role of accumulated skills within
the successful implementation of digital innovations and
should, therefore, focus on improving employee training and
education.”57 Developing a skilled and digitally savvy work-
force is essential to being competitive in the internet econo-
my.58 As COVID-19 has necessitated a rapid shift to the digital
economy, businesses themselves must play an active role in
training their workforce to develop the technical skills needed
to do business online. G20 delegates should recognize the
important role that companies play to increase access to the
digital economy and should seek unique and creative solutions
52 Gevers and McManus, “Technology for Development and Inclusion in Africa.”
53 Xolisa Phillip, “Vodacom’s Joint M-Pesa/Safaricom Platform Boosts Monthly Transactions to $20bn,” The Africa Report, November 23,
2020, https://www.theafricareport.com/51226/vodacoms-joint-m-pesa-safaricom-platform-boosts-monthly-transactions-to-20bn/.
54 Phillip, “Vodacom’s Joint M-Pesa/Safaricom Platform Boosts Monthly Transactions to $20bn.”
55 Pomeroy, “Pandemic Hastens Digital Economy.”
56 Alsufiev, Shakina, and Parshakov, “Rethinking the Corporate Digital Divide: The Complementarity of Technologies and the Demand
for Digital Skills.”
57 Alsufiev, Shakina, and Parshakov, “Rethinking the Corporate Digital Divide: The Complementarity of Technologies and the Demand
for Digital Skills.”
58 Alsufiev, Shakina, and Parshakov, “Rethinking the Corporate Digital Divide: The Complementarity of Technologies and the Demand
for Digital Skills.”You can also read
