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Restoring Confidence in the Digital Economy

How do we restore trust and confidence in the underpinnings of the digital economy in the wake of unsettling disclosures about international surveillance practices?

That question is top of mind for policymakers in the US and European Union as they ponder the possibility of a grand, new transatlantic trade and investment partnership. As I noted in speeches this week in Brussels and Paris, getting the answer right will be critical if we are going to capture maximum benefit from the kinds of software innovations that are transforming everything from the way manufacturers manage their supply chains to the way doctors provide healthcare.

There is no question that disclosures about surveillance programs have raised important privacy and security questions that deserve a serious, thoughtful debate. But it is also important not to conflate separate issues. National security concerns don’t have to undermine technology innovation and economic growth — and we shouldn’t allow them to.

BSA strongly supports reforming surveillance regimes to build trust and confidence in the technologies that drive the modern economy. That’s why we have urged US officials to increase transparency around government requests for data. We are encouraged that broader reform proposals are now being put forward by the Obama Administration and Congress.

But surveillance reform is not just a US matter. So there needs to be a robust international dialogue on surveillance norms, and there are a number of things that should be on the table as part of that dialogue:

  • First, countries around the world all should take action to improve the transparency of their data-collection practices.
  • Second, governments should work together to develop a “shared language” on transparency — so that when agencies disclose information about surveillance demands, people can understand it.
  • Third, we should improve the system of mutual legal assistance treaties (“MLATs”) that law enforcement agencies rely on when they pursue investigations.

As a former trade negotiator, I know from first-hand experience how hard it can be to find agreement on complex issues like these. But that shouldn’t stop us from trying. In the absence of constructive discussions about national security considerations, there is a real risk that countries will adopt the wrong kinds of solutions.

Already, as BSA has documented extensively, there has been a rising tide of digital protectionism around the world. Particularly concerning has been a movement toward undue restrictions on the flow of information across borders. Some countries are requiring companies to put servers inside their borders to do business there. Others are adopting heavy-handed preferences for locally developed technologies, particularly in government procurement.

In Europe, recent policy discussions about how to promote cloud computing have been colored at times with protectionist rhetoric. For example, the idea of a “Schengen area for data” has been discussed on the one hand as a way to enable the digital single market — but also as a way to shield EU firms from international competition. It has been alarming that some have even suggested creating a dedicated, EU-only cloud infrastructure.

As a practical matter, attempting to lock data inside national borders — and keep competitors out — is self-defeating. It sends a validating signal to other, less transparent markets that it is okay for them to turn inward. It also limits the horizons of domestic companies when they want to export to foreign markets. But more fundamentally, attempting to balkanize the Internet would be a perversion of what it does and what it stands for. It would subvert the architecture of the Internet and subvert the benefits it has brought the world.

Europe and the United States have an opportunity today to show the world there is a better way. We need to promote a globally integrated marketplace that gives everyone the opportunity to capture maximum value from the cloud and digital services.

The goals of national security, data privacy and technology innovation cannot be held apart as mutually exclusive. We need to envision and drive towards a world of mutual trust, dynamic innovation and broadly beneficial growth.

Author:

Victoria Espinel is a global leader advancing the future of technology innovation.  

As CEO of BSA | The Software Alliance, Victoria has grown the organization’s worldwide presence in over 30 countries, distinguishing BSA as the leader for enterprise software companies on issues including artificial intelligence, privacy, cybersecurity, and digital trade. She launched the Digital Transformation Network and the Global Data Alliance, flagship BSA initiatives to further BSA’s collaboration with 15+ industry sectors globally. Victoria founded Software.org, the enterprise software industry’s nonprofit partner that educates policymakers and the public about the impact of software and careers within the industry. 

Victoria serves on President Biden’s National Artificial Intelligence Advisory Committee (Chair of the International Working Group), served as a member of the President’s USTR Advisory Committee for Trade Policy and Negotiations (ACTPN), and chaired the Future of Software and Society Group at the World Economic Forum. She is a lifetime member of the Council on Foreign Relations. 

 Victoria has testified on multiple occasions before the US Congress, European Parliament, and Japanese Diet. Victoria speaks frequently to groups about AI, cybersecurity, and STEM education, including Latinas in Tech, Girls Rule the Law, the Congressional Staff Hispanic Association, Women’s Congressional Staff Associations, Girls Who Code, EqualAI, CSIS, and numerous academic institutions. She has been featured in a wide range of media outlets, including New York Times, Washington Post, Financial Times, Forbes, C-SPAN, BBC, Bloomberg Business, The New Yorker, and NPR. 

Prior to BSA, Victoria was confirmed by the US Senate to serve as the first White House “IP Czar,” establishing a new office in the White House and advising President Obama on intellectual property. She also served in the Bush Administration as the first chief US trade negotiator for intellectual property and innovation, a role in which she created the office of Intellectual Property and Innovation at USTR and led negotiations with over 70 countries. 

Victoria launched Girls Who Code’s Washington, DC summer program and serves on the Board of Directors for ChIPs, a nonprofit organization advancing women in technology law and policy. 

She holds an LLM from the London School of Economics, a JD from Georgetown University Law School, and a BS in Foreign Service from Georgetown University’s School of Foreign Service. She is a native of Washington, DC, and the proud proprietor of Jewel of the South, a restaurant in New Orleans. 

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