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1. African Jobs in the Digital Era: Export Options with a Focus on Online Labour

Author:
Elvis Melia
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
This study asks what impact the Fourth Industrial Revolution will have on job creation and catchup development in Sub-Saharan Africa over the coming decade. Can light manufacturing export sectors still serve African development the way they served East Asian development in the past? If factory floor automation reduces the need for low-cost labour in global value chains, can IT-enabled services exports become an alternative driver of African catch-up development? I present case study evidence from Kenya to show that online freelancing has become an interesting sector, both in terms of its growth trajectory, and in terms of worker upward mobility in the global knowledge economy. As life everywhere moves further into the digital realm, and global internet connectivity between Africa and the rest of the world grows, more and more young Africans who stream onto the labour market may find work in the world of global online freelancing. I discuss the building blocks needed to make online work a sustainable vehicle for African catch-up development in the years ahead.
Topic:
Development, Science and Technology, Labor Issues, Internet, Exports, Manufacturing, and Industry
Political Geography:
Kenya and Africa

2. Digitalisation and its Impact on SME Finance in Sub-Saharan Africa: Reviewing the Hype and Actual Developments

Author:
Sabrina Disse and Christoph Sommer
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
The vast majority of enterprises worldwide can be categorized as small and medium-sized enterprises (SMEs). They play a crucial role in providing a livelihood and income for diverse segments of the labour force, in creating new jobs, fostering valued added and economic growth. In addition, SMEs are associated with innovation, productivity enhancement as well as economic diversification and inclusiveness. However, almost half of the formal enterprises in low and middle-income countries (LMICs) are financially constrained, meaning that SMEs’ financing needs are unserved or underserved. Digitalisation is often seen as game changer that overcomes the challenges of SME finance by capitalising on the reduced transaction costs, the broader access to more and alternative data and the new customer experience shaped by convenience and simplicity. This paper aims to answer the question what the role of digital financial instruments in SME finance in Sub-Saharan Africa is. It reviews and discusses the opportunities and challenges of digital advances for SME finance in general and of three specific financing instruments, namely mobile money (including digital credits), crowdfunding (including peer-to-peer lending) and public equity. It contrasts the hype around digital finance with actual market developments and trends in Africa. Main findings indicate that even though digital advances have led to impressive growth of certain digital finance instruments, it has not triggered a remake of the financial system. Digitalisation of the financial system is less disruptive than many expected, but does gradually change the financing landscapes. Some markets have added innovative and dynamic niches shaped by digital financial services, but new digital players have in general not replaced the incumbents. Furthermore, the contributions of digital instruments to finance in general and SME finance in particular are still very limited on the African continent compared to either the portfolio of outstanding SME finance by banks or the capital raised by similar innovative instruments elsewhere in the world. Many uncertainties remain, most importantly the response of regulators and responsible authorities. They need to provide a suitable legal framework to strike a balance between the innovation and growth aspiration of the digital finance industry and the integrity and stability of markets and the financial system at large. Also regulators have to safeguard data privacy and cybersecurity and prevent illicit financial flows, bad practices around excessive data collection, intransparency and poor reporting as well as exploitation of vulnerable groups with limited financial literacy. Governments also have to address the increasing gap towards those left behind by digital finance due to issues with ownership of a digital device, mobile network coverage and the internet connection or issues of basic digital and financial literacy.
Topic:
Development, Science and Technology, Digital Economy, Business, Economic growth, and Diversification
Political Geography:
Africa

3. Data-and AI-driven Economic Growth in a General Equilibrium Model

Author:
Kyu yub Lee and Hyun Park
Publication Date:
02-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
We attempt to characterize a data- and AI-driven economy and establish a general equilibrium growth model in order to describe the data economy and examine how data and AI can affect the economy in the long run. To sum up, this article provides three policy implications. First, the authority should have a balanced view between privacy protection and data usage in economy-wide technology in terms of long-run growth. Privacy should not be considered only as utility loss, but must be considered as a contributor to loss in growth rates. Second, economic growth can be achieved by using higher amounts of data as well as continuous development in AI technology. A caveat is that AI-technology can boost economic growth only when it applies to all industries as general purpose technology. Lastly, the authorities should keep considering how to deal with new issues that include data ownership, outlaw data sharing, data market, AI bias, and so forth. Our model can be used as a starting point to such examinations.
Topic:
Science and Technology, Privacy, Economic growth, Economic Policy, and Artificial Intelligence
Political Geography:
Asia and South Korea

4. Senior Conference 55—The Emerging Environment in the Indo-Pacific Region: Drivers, Directions, and Decisions

Author:
Terry Babcock-Lumish, Tania Chacho, Tom Fox, and Zachary Griffiths
Publication Date:
03-2020
Content Type:
Special Report
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
As the Indo-Pacific region enters a period of uncertainty, this monograph details the proceedings of West Point’s 2019 Senior Conference 55. Scholars and practitioners convened to discuss and debate strategic changes, and experts shared thoughts during keynote addresses and panels on economics, security, technology, and potential futures in this critically important region.
Topic:
Security, Science and Technology, Military Strategy, Armed Forces, and Military Affairs
Political Geography:
Asia, North America, United States of America, and Indo-Pacific

5. The Intersection of Emergent Technologies and Geopolitics: Implications for Singapore

Author:
Muhammad Faizal and Bin Abdul Rahman
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies (NTS)
Abstract:
This paper examines how Singapore as a small state will have to navigate a more contested world from a policy-relevant angle. A primary driver of geopolitical contestation today stems from emergent or Fourth Industrial Revolution (4IR) technologies contributing to the redistribution of geopolitical power to the disadvantage of the established western-led international order. Even as Singapore embarks on numerous programmes to invest in and adopt 4IR technologies, it has to consider geopolitics besides technical specifications and budgetary issues. A small state will have to face trade-offs when it engages the competing big powers to preserve its neutrality and balance relations. It is difficult for small states to emulate each other’s strategies in balancing relations with the big powers given their varying levels of risk appetite and technological adoption, as well as their different geostrategic and geo-economic realities. Nevertheless, there are strategic steps that small states such as Singapore can take to defend its national interests better while investing in and adopting 4IR technologies.
Topic:
National Security, Science and Technology, Global Political Economy, and Trade
Political Geography:
Asia and Singapore

6. The Social Credit System: Not Just Another Chinese Idiosyncrasy

Author:
Eunsun Cho
Publication Date:
05-2020
Content Type:
Journal Article
Journal:
Woodrow Wilson School Journal of Public and International Affairs
Institution:
Woodrow Wilson School of Public and International Affairs, Princeton University
Abstract:
As the unparalleled ability of big data to capture and process real-time information signals a revolution in public administration, countries around the world have begun to explore the application of the technology to government functions. At the forefront of these efforts is China, which is planning to launch the social credit system (SCS), a data-powered project to monitor, assess, and shape the behavior of all citizens and enterprises. This new frontier of digital surveillance raises questions about how the United States will incorporate data technology into its own politics and economy. This article argues that the U.S. needs a comprehensive nationwide data protection framework that places limits on surveillance by both private business and the government. Without drawing its own baseline for personal data protection, the United States risks missing the already narrowing opportunity to define its balance between democracy, security, and growth.
Topic:
Security, Science and Technology, Democracy, and Surveillance
Political Geography:
China, Asia-Pacific, and United States of America

7. Artificial Intelligence in International Development: Avoiding Ethical Pitfalls

Author:
Lindsey Andersen
Publication Date:
05-2020
Content Type:
Journal Article
Journal:
Woodrow Wilson School Journal of Public and International Affairs
Institution:
Woodrow Wilson School of Public and International Affairs, Princeton University
Abstract:
Artificial intelligence (AI) will soon be at the center of the international development field. Amidst this transformation, there is insufficient consideration from the international development sector and the growing AI and ethics field of the unique ethical issues AI initiatives face in the development context. This paper argues that the multiple stakeholder layers in international development projects, as well as the role of third-party AI vendors, results in particular ethical concerns related to fairness and inclusion, transparency, explainability and accountability, data limitations, and privacy and security. It concludes with a series of principles that build on the information communication technology for development (ICT4D) community’s Principles for Digital Development to guide international development funders and implementers in the responsible, ethical implementation of AI initiatives.
Topic:
Science and Technology, Ethics, International Development, and Artificial Intelligence
Political Geography:
Global Focus

8. Attracting SESAME Users’ Community to the Technical Dimensions of CBRN Activities, Disarmament, and Non-Proliferation

Author:
Marc Finaud and Bernd W. Kubbig
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
The Geneva Centre for Security Policy
Abstract:
SESAME, which stands for Synchrotron-light for Experimental Science and Applications in the Middle East, is a large-scale techno-scientific project that was established under the auspices of the United Nations Educational, Scientific and Cultural Organization (UNESCO) and is set up according to the model of the European Organization for Nuclear Research (CERN) in Geneva. This multilateral endeavour, located in Jordan, brings together experts and researchers from the Mediterranean/Middle East, including from countries that do not have diplomatic relations (e.g. Israel and Iran, Cyprus and Turkey). It is conceived primarily as a project combining research capacity-building with vital peacebuilding efforts. In principle, these efforts may include the manifold technical and cooperative dimensions of anti-terrorist activities related to weapons of mass destruction (chemical, biological, radiological, and nuclear, or CBRN), and also to disarmament and non-proliferation. The country where SESAME is located – Jordan – has been heavily involved in the fight against the so-called Islamic State of Iraq and Syria (IS). This Policy Forum issue deals with the genesis of SESAME, and then describes its functioning, achievements, and potential benefits; the challenges it faces, especially funding; and its peacebuilding element. The SESAME project can be improved in concrete ways by meeting two peacebuilding-related criteria: firstly, by living up to its claim of being a contribution to rapprochement between the peoples of this conflict-torn region, whose security is affected by national rivalries or violent non-state actors; and, secondly, by providing inputs for the users’ community without adversely affecting that community’s predominant focus on research. This Policy Forum aims at acquainting especially young scientists with the technical and cooperative dimensions of SESAME’s CBRN-related counter-terrorist activities, as well as its disarmament and non-proliferation measures. Such scientists can make use particularly of International Atomic Energy Agency (IAEA) programmes and of the nearby Amman-based academic and educational infrastructure.
Topic:
Science and Technology, United Nations, Counter-terrorism, and Peace
Political Geography:
Middle East and Jordan

9. Overcoming Taiwan’s Energy Trilemma

Author:
Evan A. Feigenbaum and Jen-Yi Hou
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Taiwan needs to look not just to the energy it needs right now but also to the energy it will need ten to twenty years from now if it is to power its future. This paper focuses on two elements of the paradigmatic transformation that are especially relevant to Taiwan’s future: (1) the rise of new energy and storage technologies, and (2) the dynamics of liquefied natural gas pricing. In particular, it looks at several ways in which new investment partnerships between Taiwan and U.S. players could bolster Taiwan’s ambitious effort to build out renewable energy as a source of industrial and residential power.
Topic:
Energy Policy, Markets, Science and Technology, Investment, and Fossil Fuels
Political Geography:
Middle East, Taiwan, and United States of America

10. Assuring Taiwan’s Innovation Future

Author:
Evan A. Feigenbaum
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Innovation has been a source of comparative advantage for Taiwan historically. It has also been an important basis for U.S. firms, investors, and government to support Taiwan’s development while expanding mutually beneficial linkages. Yet, both Taiwan’s innovation advantage and the prospect of jointly developed, technologically disruptive collaborations face challenges. For one, Taiwan’s technology ecosystem has been hollowed out in recent decades as personal computing (PC), component systems, and mobile device manufacturing moved across the Taiwan Strait to mainland China. Meanwhile, Taiwan’s innovation ecosystem has struggled to foster subsequent generations of startups to replace these losses in electronics manufacturing. Despite a freewheeling startup culture, internationalization has been a persistent challenge for Taiwan-based firms. Technological change and political challenges from Beijing present additional risks to Taiwan’s innovation future. In this context, it is essential that Taiwan get back to basics if it is to assure its innovation advantage. One piece of this will involve taking a hard look at the domestic policy environment in Taiwan to ensure a steady pipeline of next-generation engineering talent. Yet Taiwan also needs to address several structural and policy factors that, over the last decade, have eroded its enviable innovation advantage.
Topic:
Science and Technology, Partnerships, Investment, and Innovation
Political Geography:
Taiwan and United States of America