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171. Designing Institutional Collaboration into Global Governance

Author:
C. Randall Henning
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Collaboration among international institutions is essential for high-quality governance in many areas of global policy, yet it is chronically undersupplied. Numerous opportunities for institutional collaboration are being missed and there are calls for deepening collaboration in discourse on global governance — in new areas of governance, such as digital privacy, content moderation and platforms; better-established areas, such as climate change and biodiversity; as well as long-established but nonetheless evolving areas, such as international finance, development and trade. There are several obstacles to collaboration, including key countries’ using some institutions to constrain others, a strategy of “complexity for control.” This policy brief suggests that in designing international institutions, states and other principals should draw from a tool kit of strategies and techniques for promoting collaboration, including introducing or developing formal and informal mechanisms, and harnessing the Group of Seven and the Group of Twenty to foster collaboration proactively. New institutions should be designed from the outset to collaborate with others in a dense institutional environment.
Topic:
Science and Technology, Privacy, Institutions, Innovation, and Collaboration
Political Geography:
Global Focus

172. The Future of Work: Between Technology and Inequality

Author:
Dania El Akkawi
Publication Date:
02-2021
Content Type:
Journal Article
Journal:
Cairo Review of Global Affairs
Institution:
School of Global Affairs and Public Policy, American University in Cairo
Abstract:
While the future is foggy in light of the pandemic, the importance of technology is real and certain, and the creation of new jobs will pave the way for new global work arrangements.
Topic:
Science and Technology, Labor Issues, Inequality, Work Culture, and Workforce
Political Geography:
Global Focus

173. Covid-19’s Not Through With Us Yet

Author:
Dahr Jamail
Publication Date:
09-2021
Content Type:
Journal Article
Journal:
Cairo Review of Global Affairs
Institution:
School of Global Affairs and Public Policy, American University in Cairo
Abstract:
As vaccines offer hope for a world after Covid, experts warn that in many ways, the fight is only beginning.
Topic:
Science and Technology, Vaccine, Pandemic, COVID-19, and Medicine
Political Geography:
Global Focus

174. From SMEs to Unicorns: What Role for Trade, Standards and New Tech?

Author:
Lucian Cernat
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The global economy has been shaped by important, disruptive technological changes in recent years. Many of these technologies have been instrumental in our global COVID-19 response and will become the new normal. Some of these technologies have been introduced by small firms, which grew spectacularly to become ‘unicorns’, with very high market value and global reach, setting new technological standards in their sectors. The future competitiveness of the EU economy depends on the interplay between firm size, technological progress and ability to use the opportunities offered by global markets. This paper looks at the role of trade policy in influencing this complex interplay and offers a few tentative conclusions and recommendations.
Topic:
Science and Technology, European Union, Economy, Trade, and COVID-19
Political Geography:
Europe and Global Focus

175. Do robots dream of paying taxes?

Author:
Rebecca Christie
Publication Date:
10-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Robot taxes embody the more futuristic challenges of managing automation and legacy workers. As machines and artificial intelligence take on more roles that used to be performed by humans, policymakers and technologists are assessing the costs this transition imposes and what parts of society will pay them. A robot tax on companies that replace employees with automated systems is easy to dismiss in its most simplistic forms but should be considered in the context of managing the next industrial revolution. A robot tax is a political construction, a way to shape democratic debate around technological shifts and societal needs. It is a construct of the public debate, and as such can contribute to broader discussions about how to make sure profitable companies pay their way in the economy. The political capital of ‘replacement robot’ imagery may be useful in designing a tax framework for legacy firms making the most of new economic opportunities. It is best to consider a ‘robot tax’ as a rallying concept for targeted levies. These policies should target finance and other data-driven sectors as well as traditional manufacturing and mining automation. Policymakers should consider overall employment, specific job losses and how to assess firms that make layoffs in specific areas of their workforces. This last will be especially difficult in cases where total headcount rises, even though some generations of employees may be put out of work. Tax policy can compensate for distortions due to shifts from human-driven to capital-intensive production in specific sectors. On the revenue side, there should be appropriate expectations of what a tech tax can raise and over what period, on the scale of targeted retirement assistance or retraining programmes with measurable outcomes, not long-running cash cows. Smaller and more innovative firms should not be asked to contribute disproportionately, particularly in legacy markets that are hard to break into, and they should be eligible for waivers and exemptions. Policymakers should stress that asking producers to help pay the costs of societal change is not immediately equivalent to stifling innovation, and they should make every effort to design policies in ways that protect against this type of side effect. Finally, any new tax on employers needs to fit with broader discussions of the corporate fair share, and with taxing the most profitable parts of the economy instead of relying on workers and consumers to foot society’s bills.
Topic:
Science and Technology, Labor Issues, Business, and Digital Transition
Political Geography:
Global Focus

176. Towards efficient information sharing in network markets

Author:
Georgios Petropoulous, Bertin Martens, Marshall Van Alstyne, and Geoffrey Parker
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Digital platforms facilitate interactions between consumers and merchants that allow collection of profiling information, which drives innovation and welfare. Private incentives, however, lead to information asymmetries resulting in market failures both on-platform, among merchants, and off-platform, among competing platforms. This paper develops two product-differentiation models to study private and social incentives to share information within and between platforms. We show that there is scope for ex-ante regulation of mandatory data sharing that improves social welfare better than competing interventions, such as barring entry, break-up, forced divestiture or limiting recommendation steering. These alternate proposals do not make efficient use of information. We argue that the location of data access matters and develop a regulatory framework that introduces a new data right for platform users, the in-situ data right, which is associated with positive welfare gains. By construction, this right enables effective sharing of information together with its context, without reducing the value created by network effects. It also enables regulatory oversight but limits data privacy leakages. We discuss crucial elements of its implementation in order to achieve innovation-friendly and competitive digital markets.
Topic:
Markets, Science and Technology, Data, and Information
Political Geography:
Global Focus

177. Biometric technologies at work: a proposed use-based taxonomy

Author:
Mario Mariniello and Mia Hoffmann
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Biometric technologies have in principle the potential to significantly improve worker productivity, security and safety. However, they are also a source of new risks, including exposure to potential personal data abuse or the psychological distress caused by permanent monitoring. The European Union lacks a coherent regulatory framework on the mitigation of risks arising from the use of biometric technologies in the workplace. We propose a taxonomy to underpin the use of artificial intelligence-powered biometric technologies in the workplace. Technologies can be classified into four broad categories based on their main function: (1) security, (2) recruitment, (3) monitoring, (4) safety and well-being. We identify the benefits and risks linked to each category. To be more effective, EU regulation of artificial intelligence (AI) in the workplace should integrate more detail on technology use. It should also address the current scarcity of granular data by sourcing information from users of AI technologies, not only providers. There is an untapped potential for technology to address workplace health hazards. Policymakers should design incentive mechanisms to encourage adoption of the technologies with the greatest potential to benefit workers. Artificial intelligence users, in particular bigger companies, should be required to assess the effect of AI adoption on work processes, with the active participation of their workforces.
Topic:
Science and Technology, European Union, Artificial Intelligence, and Biometrics
Political Geography:
Europe and Global Focus

178. mRNA vaccines: a lucky shot?

Author:
Reinhilde Veugelers
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
MRNA technology has proved in the context of the COVID-19 pandemic its breakthrough value as a basis for vaccines. There has been rapid development of highly safe, effective and robust mRNA vaccines, and these can be delivered at large scale. Yet the technology is the result of a long process of accumulation of innovation and capacity. It was a bumpy process that could easily have turned out differently. The mRNA vaccines story suggests that a vibrant vaccine ecosystem cannot be taken for granted in terms of delivering the breakthroughs needed for global pandemic preparedness and response. This paper examines the background of mRNA technology development to understand better how public vaccine research and development policy can be improved to generate the full global social benefits from breakthrough novel vaccine technologies, like mRNA.
Topic:
Science and Technology, Research, Vaccine, and COVID-19
Political Geography:
Global Focus

179. Market power and artificial intelligence work on online labour markets

Author:
Néstor Duch-Brown, Estrella Gomez-Herrera, Frank Mueller-Langer, and Songül Tolan
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The views are those of the authors and should not be regarded as stating an official position of the European Commission. Frank Mueller-Langer gratefully acknowledges financial support from a research grant of the University of the Bundeswehr Munich. We investigate three alternative but complementary indicators of market power on one of the largest online labour markets (OLMs) in Europe: (1) the elasticity of labour demand, (2) the elasticity of labour supply, and (3) the concentration of market shares. We explore how these indicators relate to an exogenous change in platform policy. In the middle of the observation period, the platform made it mandatory for employers to signal the rates they were willing to pay, as given by the level of experience required to perform a project: entry, intermediate or expert level. We find a positive labour supply elasticity ranging between 0.06 and 0.15, which is higher for expert-level projects. We also find that the labour demand elasticity increased while the labour supply elasticity decreased after the policy change. Based on this, we argue that market-designing platform providers can influence the labour demand and supply elasticities on OLMs with the terms and conditions they set for the platform. We also explore the demand for and supply of AI-related labour on the OLM under study. We provide evidence of a significantly higher demand for AI-related labour (ranging from +1.4 percent to +4.1 percent) and a significantly lower supply of AI-related labour (ranging from -6.8 percent to -1.6 percent) than for other types of labour. We also find that workers on AI projects receive 3.0 percent to 3.2 percent higher wages than workers on non-AI projects.
Topic:
Markets, Science and Technology, Internet, Artificial Intelligence, and Labor Market
Political Geography:
Global Focus

180. Why U.S. Immigration Barriers Matter for the Global Advancement of Science

Author:
Ruchi Agarwal and Patrick Gaule
Publication Date:
10-2021
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
While talent can be born anywhere, few places specialize in nurturing it. Accordingly, talented individuals have pursued opportunities abroad for centuries. For instance, Aristotle moved from Northern Greece to Athens to attend Plato’s Academy and then to Macedonia to tutor a young Alexander the Great. More recently, the United States has emerged as a hub for foreign talent, playing an outsized role in the global knowledge network of scientific activity in recent decades. However, the recent introduction of restrictive immigration policies in the United States may adversely impact scientific activity. While studies have examined the potential negative impact of restrictive U.S. immigration policies on U.S. competitiveness in science and innovation, there has been less focus on understanding how U.S. immigration barriers may in turn impact scientific activity globally. In this context, our work studies the impact of U.S. immigration barriers on global knowledge production and examines which policy actions are more likely to help advance the global knowledge frontier.
Topic:
Science and Technology, Immigration, Border Control, and Research and Development
Political Geography:
Global Focus and United States of America