Uncategorized

Knowledge Graph of Debate

Session report

Krishna Moorthy

The India Electronics and Semiconductors Association (IESA) is working towards integrating India into the global Electronics System Design and Manufacturing (ESDM) and semiconductor manufacturing supply chain. This initiative is crucial for India’s economic growth. By aligning with international industry standards and practices, India can attract investments, create job opportunities, and foster innovation in the electronics and semiconductor sectors.

To ensure successful integration, bridging the gap between academia and industry is essential. Due to the rapid advancements in deep technologies, even educational institutions are finding it challenging to keep up with the pace. Therefore, collaboration and knowledge exchange between academia and industries are needed to facilitate the efficient transfer of technology and promote skill development in emerging fields.

The success of micro, small, and medium-sized enterprises (MSMEs) and startups is key to India’s future. India has built a significant startup ecosystem, making it one of the largest globally. Supporting and nurturing these businesses will contribute to economic growth, job creation, and technological innovation. Policies and initiatives that create a conducive environment for MSMEs and startups are crucial for India’s economic prosperity.

A sustainable model for digital transformation and cross-border data movement is also essential. Every day, terabytes of data, including chip design data and licensed technology transfers, cross borders. Developing secure and efficient mechanisms for data handling while ensuring privacy and protection is crucial for fostering global partnerships and achieving industry, innovation, and infrastructure goals.

India’s policy on data privacy and protection is seen as a step in the right direction. With ongoing discussions and deliberations on the policy, India acknowledges the importance of robust regulations to safeguard personal and sensitive data. Strengthening data protection measures will enhance trust, promote the growth of the digital economy, and contribute to achieving peace, justice, and strong institutions.

Regarding moratoriums, a clear definition and implementation process are necessary. It is not possible to categorize a moratorium simply as good or bad. Establishing distinct classifications and definitions for the goods and services involved and conducting systematic studies are essential to better understand and address the complexities surrounding moratoriums.

The volume, accuracy, and security of data involved in the digital landscape present significant challenges. As large amounts of data are transferred between points, concerns about its accuracy, correctness, and security arise. Careful handling and effective data management strategies are imperative to address these concerns and ensure the integrity and reliability of data in various digital processes.

The Goods and Services Tax (GST) has played a significant role in normalizing tax components such as sales tax and value-added tax in the technology industry. Over the past 15 years, the technology industry in India has experienced tremendous growth and has become a major contributor to the economy. The implementation of customs duty should consider both the input and output side of products or services to ensure fair and equitable taxation.

Providing credit for paid customs duty can help offset the additional cost burden on businesses. This mechanism will promote competitiveness and encourage businesses to participate in global trade. Initially, excluding MSMEs and services from customs duties and gradually including them can be a viable approach to support their growth and prevent undue burdens on these sectors.

Finally, there are concerns about the impact of customs duties on the technology industry in India. Given its significant contribution to the economy, any policies or decisions regarding customs duties should carefully consider potential consequences to maintain the industry’s growth and competitiveness.

In conclusion, the IESA plays a crucial role in integrating India into the global ESDM and semiconductor manufacturing supply chain. Bridging the gap between academia and industry, nurturing MSMEs and startups, ensuring sustainable digital models, and implementing effective tax and customs duty policies are key priorities for India’s economic development. With the right strategies and initiatives, India can position itself as a global leader in the electronics and semiconductor sectors, promoting innovation, job creation, and economic growth.

Audience

During the discussion, several prominent issues were brought to light. Firstly, a member of the audience raised the concern that small companies struggle to differentiate between imported and domestically-produced digital services. This was seen as a significant challenge, as it can impact the ability of these companies to compete effectively in the digital economy.

The importance of a bottom-up approach for small businesses was also emphasized, with one audience member expressing agreement on its significance. This approach focuses on empowering small businesses and giving them a voice in decision-making processes, leading to better economic growth and job creation.

Case studies further highlighted the crucial role of intermediate activities in business models, where both imported and domestic materials are used in the value chains. This finding underscores the interconnected nature of the global economy and the reliance on cross-border collaborations for businesses to thrive.

In relation to start-ups in the digital space, it was noted that many Indian start-ups primarily serve foreign clients. This highlights the international nature of the digital economy and the potential for global expansion and opportunities for these start-ups.

The adoption of digital tools was shown to have a significant positive impact on businesses, with evidence indicating a 31% increase in customer reach. This demonstrates the effectiveness of digital tools in driving business growth and enhancing market presence.

Furthermore, the increase in exports was found to be a reflection of the effectiveness of digital tools. This suggests that digitalisation plays a crucial role in enabling businesses to expand their reach and access international markets.

The use of digital inputs and final products in the production process can have potential cost implications. This observation raises questions about how the incorporation of digital technology in the production process may affect overall costs and profitability.

Trade decisions were highlighted as an area that often lacks adequate input from stakeholders. This raises concerns about the inclusivity and transparency of decision-making processes and the potential impact on various stakeholders in the digital economy.

The need to address digital taxation was also highlighted. It was noted that the shift towards digital transactions necessitates the development of appropriate tax policies and frameworks to ensure fairness and reduced inequalities.

Complexities in VAT structures and the need to outsource VAT handling to larger entities like Amazon were identified as challenges for small and medium enterprises. This underscores the need for streamlined and simplified tax systems that accommodate the unique circumstances of small businesses.

Lastly, there was a plea to eliminate the moratorium in order to allow tax decisions to be made at the national level, based on national circumstances. This call to action emphasizes the importance of national sovereignty and tailoring tax policies to suit specific countries’ needs and circumstances.

Overall, the discussion shed light on various challenges and opportunities in the digital economy. It highlighted the need for small companies to effectively differentiate between imported and domestically-produced digital services, the significance of a bottom-up approach for small businesses, and the crucial role of intermediate activities in business models. It also acknowledged the international nature of start-ups, the positive impact of digital tools on business growth, and the implications of digital inputs and final products on production costs. Additionally, concerns were raised about trade decisions, the need for digital taxation policies, and the challenges faced by small and medium enterprises. The plea to eliminate the moratorium underscored the importance of national-level tax decisions tailored to specific circumstances.

Devi Ariyani

A recent survey in Indonesia has shown that micro, small, and medium enterprises (MSMEs) heavily rely on digital goods and services. This reliance has led to increased productivity and cost efficiency, positively impacting MSME operations. The use of digital technology has also facilitated business expansion, both locally and internationally, with a 31% increase in customer expansion reported. However, the continuation of the moratorium on digital goods is crucial for MSMEs, while challenges such as limited access, increased trade costs, and threats to inclusivity need to be addressed. The survey revealed that most digital goods and services used by SMEs in Indonesia are imported, highlighting the country’s reliance on foreign technology. Furthermore, the implementation of an 11% value-added tax (VAT) on digital goods and services is an important consideration for the digital economy. A moratorium on digital goods may also impact business planning and international transactions, emphasizing the need for careful management. Overall, the survey demonstrates the importance of digital goods and services for Indonesian MSMEs, while highlighting the potential challenges and implications associated with their regulation.

Gareth Tan

The discussion explored various aspects of entrepreneurship, digital regulation, startups, and government partnerships. A key point that emerged is the recognition of the specific challenges posed by digital entrepreneurship. It was emphasised that this form of entrepreneurship brings about unique and difficult situations that require innovative solutions.

Furthermore, the conversation highlighted the increasing focus of governments on digital regulation. This shift in attention can be attributed to the growing significance of the digital economy in driving substantial parts of national economies. This observation underscores the need for governments to adapt their regulatory frameworks to effectively govern this evolving landscape.

In relation to digital regulation, startups and micro, small, and medium enterprises (MSMEs) were identified as particularly vulnerable. These entities were deemed to be most affected by digital regulation and often ill-prepared to navigate its complexities. This highlights the challenges faced by such businesses in adapting to regulatory requirements in the digital sphere.

As part of the effort to bridge the gap between governments and businesses, the Dialogue and Partnership Alliance (DPA) aims to provide a platform for engagement between startups and MSMEs with governments. This initiative serves to facilitate communication and collaboration between these entities, fostering an environment conducive to addressing the challenges posed by digital regulation.

In addition, it is worth mentioning that Gareth Tan, a participant in the discussion, expressed dissatisfaction with the management of the Q&A session. While the details of his grievances were not provided, his discontent suggests that the session may have been ineffective in addressing participant concerns or facilitating productive dialogue.

In conclusion, the discussion shed light on the challenges and opportunities associated with digital entrepreneurship, the increasing focus of governments on digital regulation, the vulnerability of startups and MSMEs to regulatory changes, and the DPA’s efforts to foster partnerships between businesses and governments. Gareth Tan’s dissatisfaction with the Q&A session serves as a reminder of the importance of effective facilitation in ensuring meaningful and productive discussions.

Firnando Buenayre Sirait

Hara is a blockchain-based data exchange that aims to bring visibility to farmers and promote digital financial inclusion in the food and agriculture sector. The company utilises young and technology-savvy individuals in villages to collect data about farmers and their lands. This data is securely stored on the blockchain, ensuring its integrity and protection. The objective is to create a network of data that can be used to establish partnerships, such as with financing and insurance companies, to enhance the value and support provided to farmers.

One specific area of focus for Hara is traceability within the palm oil supply chain. By implementing blockchain technology, Hara seeks to develop a system that can track palm oil production from the source to the end consumer. This traceability can help ensure sustainable sourcing and responsible production, aligning with the Sustainable Development Goals of Zero Hunger and Responsible Consumption and Production.

However, there is concern regarding the potential implications of Singapore’s data moratorium on Hara’s operations. As Hara stores and processes its data in Singapore, any regulations or restrictions imposed by the government could directly impact the functioning of the business. The outcome of these regulations remains uncertain, but it is an element of uncertainty that Hara needs to consider and monitor closely.

In addition to the challenges posed by data moratoriums, cross-border data transmission also proves to be a hurdle for businesses aiming for growth. The current business model of continuous innovation and rebuilding may be hindered by the burden of transmitting data across borders. Not only does this process incur costs, but it also limits the speed and efficiency of innovation. This is particularly relevant for businesses heavily reliant on digital goods and services, as any restrictions on cross-border data flow would need to be thoroughly examined and studied to understand their impact.

The potential increase in costs due to cross-border data regulations is another key concern. These additional expenses might have to be shouldered by both the company and its customers. As a result, customer pricing and company budgets may be affected, potentially hampering business growth and profitability. While it is essential to keep businesses profitable, some suggest that passing on a portion of the rising costs to customers may be necessary to maintain financial stability and sustainability.

Overall, Hara’s blockchain-based data exchange has the potential to bring significant benefits to the food and agriculture sector by providing visibility for farmers and promoting digital financial inclusion. However, challenges such as data moratoriums and cross-border data transmission need to be addressed and monitored. Further research and analysis are required to fully understand the implications of these challenges and recommend appropriate strategies to mitigate any negative outcomes.

Katrin Kuhlmann

The analysis highlights key points regarding trade policies, revenue concerns, and the potential of the digital economy. Firstly, a significant number of surveyed Micro, Small, and Medium Enterprises (MSMEs) were unaware of the World Trade Organization (WTO) moratorium on customs duties and electronic transmissions. This lack of awareness could have negative implications for their businesses, as it may result in additional administrative costs passed on to customers. Moreover, approximately 74% of MSMEs reported not being consulted about potential changes in import tariffs on electronic transmissions, indicating a lack of communication between MSMEs and policymakers.

The analysis emphasises the importance of inclusive trade and bottom-up analysis. Katrin Kuhlmann, who conducted an empirical study, believes that understanding how trade policy decisions would affect MSMEs is crucial. The study revealed the significant impact of changing trade policies on MSMEs, highlighting a lack of knowledge concerning the WTO moratorium among MSMEs and concerns about the lack of consultation with the government.

Concerns about revenue and debt burden prevail among many governments, particularly in African countries. Therefore, governments are exploring the potential of the digital economy as a revenue source. However, caution is advised as the digital space differs from physical goods, requiring a deeper understanding of its revenue potential and effective administration.

The analysis also highlights the positive impact of business innovation on growth potential and future revenue. Companies making innovative strides are commended for contributing to economic growth. Furthermore, evidence-based research is essential for informed policy decisions. For example, a feasibility study in India demonstrated that digital imports led to an increase in jobs, while an OECD study found that the revenue implications of digital imports are relatively small in terms of total government revenue.

The analysis draws attention to the approaching deadline for the WTO e-commerce moratorium. Research indicates that ending the moratorium could decrease consumption and harm GDP. Therefore, maintaining the moratorium while conducting further research on the implications of e-commerce is suggested.

Lastly, the analysis stresses the need for more study on the cost implications of the moratorium and the importance of greater consultation and engagement before revoking it. Local regulations and consultations are also deemed important in shaping policies.

Overall, the analysis provides valuable insights into the challenges and opportunities related to trade policies, revenue concerns, and the digital economy. It underlines the importance of awareness, consultation, and evidence-based decision-making to support the growth and sustainability of MSMEs and effectively manage revenue and debt burdens.

Speakers

Knowledge Graph of Debate

Session report

Christine Bliss

Digital and services trade play a crucial role in promoting sustainability by enabling effective management and processing of data information. This is particularly significant in creating knowledge about the composition, origin, and properties of products, which are essential for making sustainable choices. Moreover, digital technologies facilitate the efficient monitoring and analysis of environmental data, further supporting sustainability efforts.

However, there are challenges posed by restrictions on digital and services trade, which hamper environmental services trade and hinder the use of digital technologies for promoting sustainability. In recent years, there has been a concerning increase in services trade restrictiveness globally. Barriers to cross-border data transfers have emerged as the most prevalent obstacle, impeding the flow of data essential for sustainable decision-making.

For instance, the Information Technology Foundation has found that 144 restrictions limiting the cross-border flow of data have been imposed by 62 countries. These measures undermine the potential benefits of digital connectivity and hinder international cooperation towards sustainable development.

On a positive note, artificial intelligence (AI) and digital technologies have proven invaluable in climate monitoring and promoting sustainability. FloodBase, a small business founded and owned by women, uses digital technologies to monitor, map, and analyze floods and flood risks in climate-vulnerable communities worldwide. Such initiatives enable better preparedness and response to mitigate the impact of natural disasters, ultimately contributing to sustainability.

Additionally, green data centres have emerged as a crucial component in the storage, maintenance, and dissemination of data, designed to maximize energy efficiency and minimize environmental impact. This highlights the potential for digital technologies not only to enhance sustainability efforts but also to reduce their own carbon footprint.

To further promote sustainability, strong services and digital rules are required to foster research, innovation, knowledge sharing, and decision-making. It is vital to address challenges such as the introduction of customs duties on e-transmission and restrictions such as local presence requirements, digital services taxes, and foreign equity caps. Such measures hamper the flow of innovative digital technologies that can be instrumental in advancing sustainability.

In conclusion, digital and services trade are instrumental in promoting sustainability by facilitating effective data management, supporting climate monitoring, and encouraging innovation. However, restrictions on cross-border data transfers and other barriers hinder the potential of digital technologies for sustainability. By implementing strong services and digital rules and overcoming trade obstacles, an environment conducive to research, innovation, and knowledge sharing can be fostered, contributing to global sustainability goals.

Audience

The discussion covered several important topics related to the digital economy and sustainability. One key point of contention was the GSI e-commerce principle of the free flow of data. It was argued that this principle can restrict countries from dictating the storage location and management of their data, potentially compromising data sovereignty and citizens’ data protection.

On the other hand, there was an argument in favor of countries having the ability to demand greener, less polluting data centers for their storage needs. The environmental impact of data centers, which consume significant amounts of energy and contribute to carbon emissions, has become a growing concern. It was emphasized that countries should have the authority to set standards for data centers to promote sustainability and reduce their environmental footprint.

Another significant point raised during the discussion was the role of algorithms in contributing to pollution. An example was provided, highlighting how an algorithm used by a company called Rappi resulted in unnecessary movement of delivery personnel, leading to increased pollution. It was suggested that countries should have access to scrutinize and influence the design of such algorithms to minimize negative environmental impacts. This underscores the growing importance of algorithm auditing and the need to incorporate environmental considerations into their development.

The discussion also highlighted the importance of addressing heterogeneity in determining policy agendas. Heterogeneity refers to the diversity of perspectives, contexts, and challenges that different countries and regions face. Initiatives such as the work being done by ESCAP in the Asia-Pacific region were recognized for their role in addressing this heterogeneity and facilitating meaningful conversations. These efforts aim to promote collaboration and ensure that policies are tailored to specific contexts to maximize their effectiveness.

Overall, this expanded summary encompasses the main points discussed, including concerns about data sovereignty, the importance of promoting greener data centers, the potential pollution caused by algorithms, and the significance of addressing heterogeneity in policy agendas. These discussions contribute to the ongoing dialogue on fostering sustainable and responsible practices in the digital economy.

Martina

According to the analysis, China is the largest implementer of digital trade restrictions, while Europe leads in implementing enabling digital trade policies. This highlights the contrasting approaches taken by different regions in regulating digital trade. The Asia-Pacific region has the most restrictive digital trade policies, while Europe implements the most enabling policies.

The analysis emphasises the importance of regulatory frameworks in digital trade, with evidence showing their significant impact. Open economies have greater incentives to engage in regulatory harmonisation. This underscores the need for suitable regulatory frameworks to facilitate digital trade, supporting economic growth and decent work opportunities.

Heterogeneity in digital trade regulations is particularly important for open economies. Diverse regulatory approaches can lead to additional costs for businesses involved in digital trade. However, countries like New Zealand and Singapore advocate for harmonising digital trade regulatory policies. This promotes a more cohesive digital trade environment.

In Africa, digital trade restrictions hinder trade in services and Information and Communication Technology (ICT) goods. There is a negative correlation between regulations and the import and export of ICT goods and services. These restrictions hinder the growth of crucial sectors and impede progress towards the Sustainable Development Goals of decent work and economic growth.

In conclusion, this analysis highlights the varying approaches to digital trade regulations in different regions. China implements digital trade restrictions, while Europe focuses on enabling policies. Regulatory frameworks are crucial, particularly for open economies where heterogeneity in regulations can introduce additional costs. The detrimental impact of digital trade restrictions on Africa’s services and ICT sectors is evident. Establishing enabling and harmonised regulatory frameworks is essential to facilitate digital trade, supporting economic growth and development.

Kevin Verbelen

The analysis highlights the crucial role of digital trade in promoting sustainability and competitiveness for small and medium-sized enterprises (SMEs). By integrating software into their operations, Belgian SMEs that produce industrial ovens are able to conveniently monitor energy usage, emission production, and maintenance requirements. This digitisation allows for a reduction in raw material usage and service visits, leading to a decrease in CO2 emissions.

To effectively navigate digital trade, it is important to maintain the moratorium on electronic transmission. Without this moratorium, SMEs, particularly those engaged in producing industrial ovens, would face challenges in managing various aspects of digital trade, such as determining where and how much to pay different governments for data usage.

Global rules on e-signatures can play a pivotal role in enhancing digital trade and sustainability for micro businesses. For example, a micro business of lawyers, establishing a platform providing businesses with standardized contracts and digital archiving, would greatly benefit from global rules on e-signatures. Such rules would facilitate paperless trade, reducing the reliance on paper-based documentation and contributing to a reduction in CO2 emissions.

Furthermore, an expanded Information Technology Agreement (ITA) is necessary to facilitate affordable technology and internet infrastructure. This expansion would help in enhancing education, particularly in the least connected countries, and subsequently contribute to boosting GDP. A UNICEF study supports this argument, indicating that connecting schools in the least connected countries could add 20% to their GDP.

Overall, the sentiment of the analysis is positive, with strong support for maintaining the moratorium on electronic transmission, the Joint Statement Initiative (JSI) on e-commerce, and the expansion of the ITA. Notably, in the context of Ukraine, the digital services sector has shown growth, demonstrating the positive impact of these elements in a challenging economic climate.

This analysis underscores the significance of digital trade, the importance of supportive policies and regulations, and the potential for sustainable growth and development across different sectors. By leveraging digital technologies and embracing global rules and agreements, SMEs and micro businesses can enhance their competitiveness, reduce environmental impact, and contribute to economic growth.

Moderator

Digitalization has the potential to transform the economy in a more sustainable way. It is considered a powerful tool that can drive innovation and promote responsible consumption and production. However, trade barriers imposed by governments are hindering the progress of digitalization and slowing down efforts to combat climate change. This is an important issue because digitalization can play a crucial role in implementing sustainable practices and achieving the Sustainable Development Goals (SDGs).

One of the main arguments put forward is the need to establish global rules for international e-commerce or digital trade. This is seen as an effective way to diminish trade barriers and promote sustainability efforts. The removal of barriers and the facilitation of digital trade can encourage the adoption of sustainable practices, particularly in sectors such as agriculture. Digitally enabled services are highlighted as playing a vital role in greening economies and promoting sustainable development.

However, the current restrictive measures and fragmented standards in digitally enabled services are identified as major obstacles to sustainability. These measures not only hinder the implementation of sustainable practices but also have a negative impact on trade. It is argued that greater harmonisation of regulations and the use of international standards are necessary to overcome these challenges. Furthermore, greater stakeholder participation, particularly of Micro, Small, and Medium Enterprises (MSMEs), should be promoted to ensure the development of effective regulations.

The significant contribution of the data centres and ICT sector to global carbon emissions is acknowledged. It is revealed that the energy usage in data centres has increased significantly in recent years, contributing to environmental concerns. However, efforts to make these sectors more sustainable are also recognised, as they are gradually becoming greener and more efficient.

The importance of small businesses in adopting sustainable technology is highlighted. A case study of a Belgian SME specialised in the production of industrial ovens demonstrates how digitisation can help reduce emissions and raw material use. This serves as an argument in favour of maintaining the moratorium on customs duties on electronic transmissions, as it enables small businesses to harness sustainable technology and reduce their environmental impact.

Digital technology is identified as a catalyst for revolutionising education. By connecting schools and making technology more affordable, it has the potential to significantly improve education outcomes, particularly in the least connected countries. Studies suggest that connected schools could increase the GDP of these countries by 20%. Therefore, the expansion of Information Technology Agreement (ITA) is seen as crucial for creating a more connected education environment.

The role of digital trade in sustaining economies, especially in times of crisis, is emphasised. In Ukraine, it is noted that the digital services sector is the only sector that has shown growth during economic difficulties. The establishment of global rules for e-commerce, including the moratorium on customs duties, the Global Services Index (GSI), and the ITA, is seen as essential in enabling countries in economic crisis to sustain their economies.

The negative impact of restrictive legislation on digital trade is addressed. The Asia-Pacific region is identified as the most active in implementing restrictive policies, which limits the use of technology for sustainability. It is argued that more open economies have the greatest incentives to engage in regulatory harmonisation, which can promote sustainable practices and enhance trade.

Efforts to remove trade barriers and facilitate digital trade are being made globally. E-commerce negotiations involving 89 members, including major economies such as the EU, China, the US, Brazil, and a diverse group of developing and least developed members, are underway. The discussions are chaired by countries like Australia, Singapore, and Japan, indicating a commitment to promoting digital trade and economic growth.

The inefficiency of current digital practices and the need for technological advancement are also highlighted. It is pointed out that invoicing processes involve cumbersome manual procedures that are not sustainable. The application of modern technology to trade is insufficient and needs to be improved to enhance efficiency and sustainability.

The introduction of new rules regarding e-invoicing and paperless trading is seen as a potential solution to improve processes and promote sustainability. It is estimated that each electronic invoice saves around $12, highlighting the inefficiency of the current system. The adoption of paperless trading rules reduces handling time and streamlines operations, making them more sustainable.

The importance of consumer protection laws for ensuring product quality and preventing deceptive conduct in e-commerce is emphasised. Agreed-upon and ambitious consumer protection laws are seen as crucial for building trust in digital transactions and promoting a fair and transparent e-commerce environment.

Moreover, the significance of making big government data sets freely accessible and reusable is mentioned. This can facilitate research efforts to fight climate change, as researchers will have better access to weather and environmental data. Spain’s Open Government Data Trial is cited as an example, as it has created thousands of jobs by enabling the reuse of government data.

In conclusion, digitalization has the potential to transform the economy in a more sustainable way. However, trade barriers and restrictive legislation hinder progress in digitalization and sustainability efforts. Establishing global rules for digital trade, promoting sustainable technology adoption by small businesses, and ensuring technological advancement are crucial. Efforts to remove trade barriers, facilitate digital trade, and make big government data sets accessible can contribute to sustainable development and combat climate change.

Amy Stewart

Amy Stewart, a prominent figure in e-commerce negotiations, has emphasised the crucial need for establishing global digital trade rules. Given her role as the chairperson of these negotiations, which involve significant global players such as the EU, China, US, and Brazil, her perspective holds great importance.

Stewart highlights the necessity of making the digital economy accessible to everyone, including workers, consumers, and small businesses. She advocates for the full utilisation of technology to enhance lives and streamline business processes. However, she expresses disappointment in the slow progress made in this regard, citing examples of persisting bureaucracy and outdated paper-based systems.

Moreover, Stewart calls for the implementation of a base level consumer protection law on a global scale. To support this argument, she shares a personal experience of an unsatisfactory online shopping experience. Additionally, she expresses concern over the concentration of power in major platforms like Amazon and Alibaba, indicating the need for regulations to prevent the abuse of power.

In terms of data regulations, Stewart firmly opposes data localisation laws. She argues that these laws can be easily overcome by large corporations with extensive legal resources, but they disproportionately burden small businesses. Furthermore, she points out the environmental impact of having to develop servers in every jurisdiction. Stewart’s stance highlights the need for a comprehensive approach that considers the interests of all stakeholders.

In line with her advocacy for an inclusive digital economy, Stewart emphasises the importance of negotiating rules around data flows, data localisation, and customs duties on electronic transmissions. She believes that establishing these rules will help create a more equitable and cohesive digital landscape. Not only will it make the internet a more inclusive place, but it will also mitigate the existing fragmentation within the digital economy.

Overall, Stewart’s arguments highlight the pressing need for globally accepted regulations in the realm of digital trade. Her perspective sheds light on the challenges faced by various stakeholders, including workers, consumers, small businesses, and the environment. By advocating for a fair and inclusive digital economy, Stewart calls for collaborative efforts to establish rules that address the complexities of data flows and consumer protection while building a more cohesive and accessible digital landscape.

Speakers

Knowledge Graph of Debate

Session report

Audience

The analysis provides a comprehensive examination of three different arguments related to regulation and trade agreements.

The first argument centres around risk-based regulation. It argues that such regulation only begins when a concrete risk is identified, often disregarding instances where the impact may not be considered extreme despite a high likelihood of occurrence. The argument emphasises that risk is calculated by multiplying likelihood with impact. It further highlights the concern that certain AI applications, which may have a high likelihood but a perceived low impact, often go unregulated. The overall sentiment of this argument is negative, indicating a concern that risk-based regulation may overlook potential risks due to a narrow focus on extreme impacts.

The second argument supports rights-based regulation. This regulatory approach insists on transparency from every AI system, regardless of risk. The argument points out that rights to transparency exist in every single case, creating legal obligations for companies to provide information. This argument demonstrates a positive sentiment towards rights-based regulation, as it establishes a baseline where transparency is required for all AI systems, ensuring accountability and public trust.

The third argument explores trade agreements, with a neutral stance from the audience. The audience’s belief or assumption suggests that they perceive trade agreements to be more risk-based. Although the details of this argument are limited, it provides insightful perspective into the audience’s perception of the nature of trade agreements. The audience’s neutrality implies a reserved stance, neither fully supporting nor opposing the notion that trade agreements are more risk-based.

Overall, the analysis highlights the contrasting perspectives and approaches to regulation, specifically the comparison between risk-based and rights-based regulation. It underscores the importance of striking a balance between tangible risks and the potential impact of AI applications. Additionally, the analysis offers thought-provoking insights into the perceived relationship between trade agreements and risk.

Speaker 1

Employers are increasingly using AI to manage their workforce, affecting various aspects such as hiring, promotions, and terminations. However, the use of a risk-based approach in AI decision-making makes it difficult for workers to challenge or contest decisions made by AI systems. To address this issue, proponents argue for a rights-based approach to AI regulation, prioritising the protection of workers’ rights. One proposal is to require companies using AI to demonstrate that their AI systems do not violate workers’ rights before implementing them. This obligation would help ensure that workers’ rights are safeguarded and prevent potential violations.

In the context of trade agreements, there is often a ban on source code disclosure, with minimal exceptions. Critics argue that this approach can be harmful as it limits transparency and accountability in AI systems. Moreover, control over data is crucial for economic development. Currently, investment decisions regarding data usage are primarily driven by the private sector. To overcome this, advocates contend that data should be used in the public interest to address societal problems.

Another important aspect is the relationship between digital industrialization, data sovereignty, and development. Countries should have access to the data they produce, as it plays a vital role in their progress. However, concerns arise over the monopolization of data by big tech corporations, leading to digital colonialism. Opposing the big tech’s push for the ‘free flow of data’ is justified, as it often results in one-sided corporate transfer and exploitation of data from developing countries.

Furthermore, maintaining policy space for local regulation in the public interest is essential. There is a concern that including environmental services in trade agreements may limit the ability to regulate in the public interest. Preserving policy space allows for regulations that benefit society and prevent undue influence or interference in local issues.

In summary, the increased use of AI in the workplace has significant implications for workers’ rights, necessitating a rights-based approach to AI regulation. A ban on source code disclosure in trade agreements is seen as harmful, while control over data is viewed as crucial for economic development, with emphasis on using it in the public interest. Digital industrialization and data sovereignty are crucial for development, while opposing the ‘free flow of data’ protects developing countries from exploitation. Lastly, maintaining policy space for local regulation ensures tailored regulations that serve local needs, including regulation in the public interest.

Mariana Rielli

Brazil has been diligently working for the past two years to establish a comprehensive legal framework for the regulation of artificial intelligence (AI). The proposed AI regulation in Brazil is rights-based, emphasizing the protection of fundamental rights and data protection in accordance with constitutional provisions. This approach takes into account Brazil’s history of racial inequality and discrimination, ensuring that the regulation addresses the country’s social challenges.

However, Brazil’s involvement in trade agreements has raised concerns about potential conflicts with its internal AI regulations. There seems to be a shift in Brazil’s stance to align more closely with the United States, which disregards its own internal regulations. This conflict between trade agreements and internal regulations may pose obstacles to the effective implementation of the proposed AI bill.

One aspect of the proposed AI regulation in Brazil is its risk-based approach. Critics argue that this approach only considers tangible risks, neglecting likely occurrences with lower impact. They propose a more comprehensive risk assessment that also takes into account probable scenarios that may not have extreme consequences. This highlights the need for a balanced risk assessment considering both likelihood and impact.

Transparency is another crucial element addressed in the proposed AI regulation in Brazil. Companies are required to provide information about their AI systems, and individuals have the right to litigate if their rights are violated. This rights-based approach ensures a minimum level of transparency in every case involving AI systems, irrespective of associated risks.

The European Union’s AI Act proposal also follows a risk-based approach, similar to the proposal under consideration in Brazil. This suggests some alignment in the global approach to AI regulation. However, it is important to distinguish trade agreements from risk-based AI regulation and avoid compromising the integrity of AI regulation due to trade agreements.

Advocates for comprehensive AI regulation argue that real-life examples of AI’s impact on second-generation rights should be considered. One notable example is the scandal in the Netherlands involving automated decision-making systems used to identify potential welfare fraud. Unfortunately, this system wrongly affected innocent individuals, who suffered the loss of their livelihoods. Such instances underline the importance of robust regulation to prevent future abuses and protect individual rights.

Furthermore, there is a significant power and information asymmetry surrounding AI’s impact, with most people unaware of the consequences and unable to trace them back to AI algorithms. This knowledge gap perpetuates power imbalances and undermines transparency. Addressing this issue requires fostering collective imagination, creativity, and accessibility to AI technology, empowering individuals with the necessary knowledge to make informed decisions and prevent the concentration of power.

In conclusion, Brazil’s ongoing efforts to establish a comprehensive legal framework for AI regulation are commendable. The proposed regulation adopts a rights-based approach, prioritizing fundamental rights and data protection. However, challenges arise due to Brazil’s involvement in trade agreements, potentially conflicting with its internal regulations. The risk-based nature of the proposed regulation necessitates considering likely occurrences with lower impact. Transparency requirements and lessons from real-life examples of AI’s impact must be incorporated into the regulatory framework. Addressing the power and information asymmetry regarding AI’s impact is crucial for ensuring a fair and equitable AI landscape in Brazil and beyond.

Sofia

Artificial Intelligence (AI) in Latin America faces numerous challenges, as highlighted at a regional summit. One concern raised is limited access to data needed for AI tool development. Many developers struggle to find suitable local data and must buy it from Europe or Asia, hindering accurate and region-specific AI applications. The KIPPO 2023 summit emphasized the importance of having access to relevant and reliable data for effective AI tools.

Another challenge is the impact of free trade agreements on AI development and regulation in the region. For example, the Trans-Pacific Partnership does not permit taxing data flows or access to source code. This creates a gap between AI regulators and foreign affairs authorities, potentially disadvantaging Latin American countries that wish to retain some data locally. This issue raises concerns about regulating digital rights and data flows in the region.

The summit stressed the need to evaluate the environmental and social impacts of AI when creating regulations. The app ‘Rappi’ was cited as an example, where an algorithm requiring unnecessary worker movement caused environmental and safety concerns. However, algorithm changes can mitigate such impacts while maintaining profitability. This highlights the importance of considering the broader implications of AI on climate action, decent work, and public health.

Latin America also calls for more time and resources to develop its own AI technologies and regulatory frameworks. The dialogue between private and public sectors regarding AI development is still in its early stages, and existing trade agreements may restrict the region’s ability to create tailored policies and regulations. However, Latin America has the potential to build sovereign technologies addressing regional challenges.

Regulating AI presents challenges due to its rapidly evolving nature. Regulators struggle to keep pace with AI development and predict future impacts. This poses difficulties in developing appropriate assessment and regulation mechanisms, making effective governance a constant challenge.

The impact of AI on collective rights, particularly in the workplace, is a significant concern. Trade unions advocate for the defense of workers’ rights and demand the right to assess AI systems. Unions ensure AI systems prioritize collective rights and well-being, and can demand necessary changes when workers are adversely affected.

Additionally, there is a growing call for more democratic regulation of AI. Community rights should be given equal priority alongside individual rights. Unions play a vital role in AI regulation, enabling them to contribute to the decision-making process. Prioritizing community rights and involving unions can lead to inclusive and ethical AI development and governance.

In conclusion, the AI summit in Latin America highlighted the challenges and concerns surrounding AI development and regulation in the region. Limited access to data, the impact of free trade agreements on digital rights, environmental and social considerations, the need for more resources, the evolving nature of AI, the impact on collective rights, and the call for democratic regulation are key focus areas. Effective and inclusive AI policies and practices in Latin America require a collaborative approach involving multiple stakeholders.

Moderator

Latin America has immense potential in the field of Artificial Intelligence (AI) and is dedicated to developing its own technological solutions to tackle regional issues. The region is home to exceptional engineers and experts who are creating top-quality AI tools. Furthermore, Latin American countries are actively collaborating with UNESCO and adhering to AI principles. Remarkably, there is a growing number of startups and innovative tools based on AI, particularly in healthcare and education.

Despite this potential, Latin America encounters significant challenges, especially when it comes to acquiring relevant data. Engineers and developers often lack access to suitable data, compelling them to purchase it from European and Asian countries. Consequently, the AI tools produced are less accurate as they do not adequately reflect the local populations they aim to assist.

Another obstacle lies in the need for more time and policy freedom to establish regulations governing AI usage. The region experiences delays and ill-informed negotiations in harmonising AI regulations within Latin America and the rest of the world. It is crucial to foster more mature and informed debate and dialogue between the public and private sectors to establish effective and appropriate AI regulations.

Free trade agreements, such as the Trans-Pacific Partnership (TPP), present an additional challenge to the development and control of AI in Latin America. These agreements restrict the taxing of data flows and limit access to data and source code. As a result, they can impede the region’s ability to regulate AI effectively within its own boundaries.

Moreover, the current risk-based approach to AI places workers at a disadvantage. Under this approach, the burden of proof falls on the worker to demonstrate that their rights have been violated by an AI system. This is often difficult, as access to the inner workings of the AI system is typically locked behind intellectual property rights and trade secrets.

However, adopting a rights-based approach to AI could ensure greater accountability and prevent harm to workers. In this approach, companies would be required to demonstrate that their AI systems do not violate workers’ rights before implementing them. This proactive approach has the potential to address issues before they occur, safeguarding workers’ rights in the process.

Based on the analysis, it is evident that Latin America requires proactive regulations to protect workers’ rights against the unchecked implementation of AI. The labour ministry should have the authority to verify AI software for potential violations before its implementation in the workplace. The current practice, which heavily favors companies by allowing them to shield their AI behind intellectual property and trade secrets without proper scrutiny, needs to be reevaluated.

In conclusion, Latin America possesses significant potential in the field of AI, with exceptional engineers and experts creating top-quality AI tools. However, there are challenges to overcome, including the need for relevant data, ample time for policy development, and the restrictions imposed by free trade agreements. Additionally, the current risk-based approach to AI disadvantages workers, underscoring the importance of adopting a rights-based approach. Implementing proactive regulations that protect workers’ rights and allowing scrutiny of AI systems by the labour ministry are crucial steps towards maximising the potential benefits of AI in Latin America.

Speakers

Knowledge Graph of Debate

Session report

Audience

During her presentation, Ms. Nguyen provided valuable insights into Cambodia’s commitment to sustainability, specifically focusing on the use of organic materials and solar energy. The audience was impressed by Cambodia’s dedication to sustainable practices. One key highlight was the September database, which Cambodia utilizes as a tool to promote responsible trade and investment. This database is crucial in facilitating business practices aligned with sustainability goals.

Cambodia’s strategies on circular economy and carbon neutrality were particularly impressive. The country aims to foster September growth through the implementation of these strategies, which include reducing waste and promoting efficient resource usage. Their commitment to carbon neutrality demonstrates their dedication to mitigating climate change.

The discussion also centered around how Cambodia utilizes the sustainability database to attract green investment. The audience was eager to understand how Cambodia leverages this database to attract such investments, as green investment is essential for promoting sustainable development. The exchange of ideas and insights in this regard emphasized the importance of leveraging the database’s potential to attract investors who align with sustainability goals.

Furthermore, there was an interesting exploration of integrating the sustainability database within the broader Asian framework. The discussion touched upon Cambodia’s participation in the Asian framework for enhancing September growth and competitiveness among member states. The audience expressed curiosity about how the sustainability database could be integrated into this framework, emphasizing the potential benefits for regional collaboration and advancement towards sustainable development goals. The importance of partnerships in fostering economic growth and achieving sustainable development was also highlighted.

In summary, Ms. Nguyen’s presentation highlighted Cambodia’s commendable commitment to sustainability, focusing on organic materials, solar energy, circular economy, and carbon neutrality. The September database serves as a crucial tool in supporting responsible trade and investment. The audience expressed interest in Cambodia’s utilization of the database to attract green investment and its potential integration within the broader Asian framework. Overall, the presentation effectively showcased Cambodia’s dedication to sustainability and their efforts to foster September growth through these strategies.

Nadjati Soidiki

The analysis provides a comprehensive overview of the importance and benefits of digitalisation in various sectors. One key finding is the need for governments to adapt regulations and digital solutions to facilitate trade and improve efficiency. By implementing a single window system for external trade and connecting with customs, Comoros has demonstrated the positive impact of such measures. This highlights the potential for other governments to follow suit and enhance their regulatory frameworks and digital infrastructure.

Another significant point highlighted in the analysis is that digitisation enables equal participation in the digital realm, promoting economic competition. Regardless of the development level of countries, they can all participate equally by harnessing the power of digitisation. This presents opportunities for economic growth and reducing inequalities among nations.

Addressing concerns regarding transparency, cybersecurity, and precision is crucial in the digital era. The analysis suggests that these issues can be effectively tackled through the implementation of digitised systems. For example, the reform of payment systems and recognition of electronic signatures by states are important considerations to ensure the security and transparency of digital transactions.

Digitalisation also plays a crucial role in enhancing investment promotion agencies (IPAs). By adopting digital solutions, IPAs can access the same information, simplifying procedures, and ensuring transparency. This streamlines investment processes and creates a conducive environment for attracting and retaining investment.

The analysis also emphasises the value of shared digital platforms in facilitating information sharing about investment opportunities. These platforms, such as websites and portals, provide a centralised hub for sharing vital information about investment procedures and costs. This promotes partnerships and collaboration in achieving Sustainable Development Goals related to industry, innovation, and infrastructure.

Additionally, the importance of collective capacity building is highlighted. The analysis suggests that by enhancing capacity building initiatives, organisations can equip individuals with the necessary skills and knowledge to effectively utilise digital tools. This approach reduces dependency on third-party companies and allows for more efficient utilisation of resources.

Lastly, the analysis highlights the significance of ready-to-use solutions developed by organisations like UNCTAD. These solutions help reduce the cost of developing and training for the use of digitised systems. This makes digital technology more accessible and affordable, promoting wider adoption and implementation.

In conclusion, the analysis underscores the critical role of digitalisation across sectors, including trade, competition, investment promotion, and capacity building. By adapting regulations, enhancing digital solutions, and addressing concerns related to transparency and cybersecurity, governments can benefit from improved efficiency and increased opportunities for economic growth. Collaboration through shared digital platforms and the use of ready-to-use solutions further support the adoption of digital technologies. It is essential for policymakers and organisations to recognise the potential of digitalisation and take proactive steps towards its implementation.

Ratnakar Adhikari

Digital inclusion is essential for bringing least developed countries (LDCs) into the digital mainstream and enhancing the sustainability of supply chains. Currently, only one-third of people in LDCs are connected, leaving the remaining two-thirds without access to digital technologies and connectivity.

Furthermore, digitizing end-to-end trade transactions can have a significant positive impact on the environment, with an estimated saving of approximately 13 million tonnes of carbon dioxide emissions in the Asia-Pacific region alone. This highlights the potential of digital technologies to contribute to climate action and the achievement of Sustainable Development Goal 13.

One concrete example of the Enhanced Integrated Framework’s (EIF) support for digital projects is the Electronic Single Window (ESW) in Vanuatu. Implemented by the United Nations Conference on Trade and Development (UNCTAD), the ESW has streamlined trade processes by reducing biosecurity certification paperwork by 95% and decreasing the time needed to provide certificates from six days to just 10 minutes. This demonstrates the transformative power of digital solutions in enhancing supply chain sustainability and reducing bureaucratic inefficiencies.

EIF’s support also extends to addressing e-waste challenges. For instance, in partnership with a UAE-based company, EIF has supported Rwanda’s e-waste policy, focusing on reprocessing waste and safely destroying hazardous materials. This contributes to responsible consumption and production, aligning with Sustainable Development Goal 12.

Nepal has also benefited from EIF’s digital support through the implementation of a digitally-based traceability system for organic tea. This system has increased queries from buyers, potentially opening up new export opportunities and facilitating progress towards Sustainable Development Goal 2 to ensure zero hunger.

Additionally, EIF’s diagnostic work helps LDCs by understanding their specific needs, priorities, and challenges, enabling the refinement of legislations and procedures to create a more business-friendly environment. For example, with EIF’s support, Bhutan developed e-regulation, a digital tool that improved transparency and played a vital role in mobilising significant investments. This highlights the potential of digital technology to attract green investments and promote economic growth, aligning with Sustainable Development Goal 8.

In conclusion, EIF’s efforts in supporting digital projects and digital inclusion in LDCs have resulted in significant benefits across various areas. From enhancing supply chain sustainability to reducing carbon emissions, managing e-waste effectively, and increasing export opportunities, digital initiatives have the potential to drive inclusive and sustainable development. Furthermore, EIF’s collaboration with other agencies and provision of small funds for de-risking investments and attracting private sector participation underscores the importance of partnerships and fostering an investment ecosystem conducive to sustainable development. Continued support and investment in digital inclusion in LDCs are crucial for further progress towards the Sustainable Development Goals.

Caroline King

Caroline King, in her discussions on digital transformation, emphasises the importance of collaboration between the private sector and governments. She highlights that governments should take the lead in this process. King mentions that SAP, a leading technology company, has observed the evolution of the company’s interaction with the public sector, indicating its role as an enabler for digital transformation. She further observes that the realisation of the importance of digital transformation in government has accelerated following the COVID-19 pandemic.

Regarding AI technology, King recognises the need to establish standards and harmonization to prevent technology from controlling society. She asserts that AI is the world’s biggest disruptor and advocates working together to address the challenges posed by disruptive technology.

In terms of climate goals, King argues that achieving these goals is a shared responsibility that requires mutual support from both the private sector and the government. She believes that neither governments nor private sector entities can effectively tackle the challenges of climate change alone. King also notes that the private sector, including companies like SAP, can feel overwhelmed by the numerous fragmented initiatives on climate actions. This highlights the need for coordination and financing from the government to enhance collaboration and facilitate progress towards climate goals.

Access to technology and digital tools is seen as a means to enhance efficiency for both governments and private sectors. King highlights that SAP caters to a diverse range of customers, including SMEs, disproving the notion that their tools are suitable only for large enterprises. She points out that SAP utilizes cloud models and modular software, making their tools more affordable and flexible. Furthermore, SAP invests in startups and develops solutions that contribute to sustainability efforts, such as the certification for green hydrogen, which acts as a digital twin for ESG reporting. The company also collaborates on projects related to traceability, such as rural sourcing management in East Africa. The long-term association between SAP and BMW has resulted in the iFactory, which monitors the entire supply chain with real data.

Caroline King notes that public-private partnerships (PPPs) and cross-sectoral collaborations play a crucial role in enhancing sustainability and corporate social responsibility. As an example, SAP has developed certification for green hydrogen as part of a PPP initiative. The company has also engaged in partnerships with Gateshead for capacity building and skills development. Collaboration with governments and organizations is being considered to promote green hydrogen technology.

Overall, Caroline King’s arguments underscore the importance of collaboration, standards, access to technology, and public-private partnerships in various domains such as digital transformation, AI, climate goals, and sustainability. SAP’s involvement in these initiatives serves as concrete evidence of its commitment to enabling positive change through technology.

Long Kemvichet

Cambodia has implemented the Pentagon Strategy, a new social and economic policy agenda, to combat climate change and promote a green economy. The strategy focuses on growth, employment, equity, efficiency, and sustainability. It prioritises investments in key sectors such as digital industries, environmental management and protection, biodiversity conservation, circular economy, and green energy technology. To attract investments in these sectors, Cambodia has introduced the law on investment, 2021, providing incentives for investors.

Cambodia is actively participating in regional efforts through its membership in ASEAN. It is part of the formulation of the ASEAN Community Vision Post-2025, a 20-year strategy termed Vision 2045. ASEAN is working on a Framework on Circular Economy and a Strategy for Carbon Neutrality, aiming to achieve resilient, resource-efficient, and sustainable growth. Cambodia is leveraging these regional strategies to attract more green investments.

To promote sustainability and transparency, the Council for Development of Cambodia, in collaboration with the World Economic Forum, has developed a database for Micro, Small, and Medium Enterprises (MSMEs) to register and provide sustainability details about their products. This database serves as a platform for potential buyers and interested parties to access contact information and product details.

Cambodia has set an ambitious goal of becoming a digital economy and society by 2035. It has formulated a policy framework to adopt and maximise the benefits of digital technology. ASEAN is also negotiating an ASEAN Digital Economy Framework Agreement to accelerate inclusive digital transformation. However, it is acknowledged that developing countries, especially the Least Developed Countries (LDCs), often face challenges in accessing digital technology due to limited resources and infrastructure. These countries require technical assistance, capacity building, and technology transfer from more developed nations.

Overall, global trade discussions and negotiations should be open, transparent, and inclusive. Cambodia is working towards sustainable growth and a circular economy, as evidenced by the creation of a unique sustainability database. The ASEAN region provides Cambodia with a wider consumer base and business environment, offering an advantageous position for its sustainable development goals. Efforts are being made to connect Cambodia’s online marketplace, CambodiaTrade.com, with ASEANonline.

Improving the investment climate is crucial for de-risking investment, and Cambodia recognises the use of public money as an effective method. Blended finance models, which combine public and private investment, can help address investment challenges. The United Nations Capital Development Fund (UNCDF) is exploring a blended finance model that could be adopted.

In conclusion, Cambodia is dedicated to combating climate change, promoting a green economy, and achieving sustainable development. Through its social and economic policy agenda, regional cooperation with ASEAN, promotion of sustainability through the MSMEs database, and focus on digitalisation and investment climate improvement, Cambodia is making significant progress towards its goals.

Moderator

Investment promotion agencies and trade institutions play a vital role in achieving climate goals. They have close connections with the private sector and can influence policies and actions. These agencies and institutions represent their governments and work towards attracting investment and promoting trade. On the other hand, digitalization can contribute to creating sustainable supply chain partnerships and enhance the sustainability of the supply chain. By using digital tools, organizations can improve connectivity and efficiency, leading to more responsible consumption and production practices.

Collective knowledge and experiences from international organizations and the private sector are essential for driving sustainable solutions. The diversity of perspectives allows for the exchange of best practices and the development of innovative approaches. This is particularly relevant in the context of partnerships for the goals, where collaboration between different stakeholders is crucial.

Despite the potential benefits of digital tools, progress in terms of digital inclusion is slow in least developed countries (LDCs). Only one-third of the population in LDCs is digitally connected, highlighting the digital divide that exists. Efforts should be made to bridge this gap and ensure that LDCs can fully leverage the advantages of digitization.

Digitalization can also streamline legal processes and make them more investor-friendly. By embracing digital solutions, governments can simplify procedures, improve transparency, and create a more conducive environment for investment. This is particularly important in attracting foreign investment and promoting economic growth.

Furthermore, the transition to digital operations can contribute to environmental sustainability. Digitization leads to dematerialization, reducing the need for paper and preserving forests. Implementing digital payment systems can also reduce the need for physical movement, thereby promoting sustainability.

In Cambodia, the government has rolled out the Pentagon Strategy, a social and economic policy agenda aimed at supporting the country’s ambition to become a high-income nation by 2050. The strategy focuses on achieving growth, employment, equity, efficiency, and sustainability. It also acknowledges the significant influence of climate change and digital transformation in shaping its goals.

The ASEAN Community Vision Post-2025 is currently being formulated and emphasizes the importance of collective efforts and collaboration to address regional challenges. ASEAN member countries, including Cambodia, recognize the need to work together to achieve sustainable development goals and promote inclusive digital transformation.

SAP, a world leader in business software, acknowledges the importance of government investment and involvement in digital transformation. They have been investing in digital tools and technologies for sustainability, contributing to the development of a more sustainable and innovative business ecosystem.

However, it is essential to establish standards and promote collaboration to prevent technology from controlling us. The introduction of new technologies, such as artificial intelligence, should take into account the need for proactive regulation and the establishment of ethical frameworks.

Overall, the transition to a digital economy and the adoption of digital tools can bring significant benefits, including economic growth, sustainability, and inclusivity. To fully harness these benefits, governments, organizations, and international institutions must work together to address challenges, bridge the digital divide, and promote responsible and sustainable digital transformations.

Speakers

Knowledge Graph of Debate

Session report

Raquel CHAN

In the analysis, the speakers highlight the potential of biotechnology to increase crop yield and resilience. They mention examples where the introduction of a gene from a sunflower to the Arabidopsis thaliana plant helped it withstand longer periods of water deficit. They also discuss how elite crop varieties have been successfully improved using biotechnology. Moreover, the speakers refer to the Wheat HB4 variety, which was developed using biotechnology and found to be carbon neutral.

The importance of collaboration and public-private partnerships in agricultural biotechnology is emphasized. The successful development of biotech crops is attributed to interdisciplinary collaboration, public-private partnerships, and state investments. The technologies developed have received approval in various countries, and the owning company has even reached the New York stock market.

Furthermore, the analysis highlights that small mechanical alterations can increase crop yield without the need for genetic modification. Applying weight to the stems of plants for 48 hours has shown to increase yield by up to 50%. This method has been successfully applied to various crops, including Chia and tomatoes. Additionally, it has been found to increase the plants’ resistance to fusarium, a lethal fungus.

The speakers stress the importance of investing in science and technology regardless of a country’s wealth status. They argue that such investment is crucial for the success of research and development. The need for a series of small revolutions in agriculture is also highlighted, rather than relying solely on a second Green Revolution. Argentina’s grain production is cited as an example, having tripled from 40 million tons in the 90s to 150 million tons today, thanks to small contributions, including GMO wheat.

The analysis also points out that investment in agriculture should be tailored to the specific needs of each country. Argentina, being an agricultural country, has focused on improving its agricultural sector. Additionally, it is noted that technology and digital advancements play a significant role in enhancing food production. Satellites and digital technologies are mentioned as vital tools in improving agricultural practices. The development of GMO wheat is cited as a positive example of how technology has increased food production.

Overall, the speakers argue that biotechnology, collaboration, investment in science and technology, small mechanical alterations, and digital advancements all contribute to enhancing crop yield, resilience, and food production. These conclusions highlight the importance of interdisciplinary approaches and tailored strategies to address the challenges faced in agriculture globally.

Audience

The discussion focused on several key topics related to agricultural technology. Firstly, there was a consensus that another technological revolution is needed to enhance crop production. It was noted that the Green Revolution in the 1960s and 1970s led to a significant increase in wheat and rice production. However, with the projected demand for crops in the future to feed a global population of 10 billion people, it was suggested that a new Technological Revolution is necessary to meet this challenge.

The importance of inter-country cooperation for the rapid development of new agricultural technology was also emphasized. It was highlighted that many countries have established National Research Institutes, which could collaborate and share knowledge and resources to accelerate progress in this field. By promoting partnerships and sharing best practices, it is believed that advancements in agricultural technology could be achieved more efficiently and effectively.

Drawing young people into the agricultural technology field was another aspect discussed. Recognising that the agricultural sector needs young, talented individuals to drive innovation and growth, the need to attract and engage the younger generation in this field was highlighted. Specific strategies and initiatives to promote agriculture as an attractive career option were not explicitly discussed, but it was acknowledged as an important factor for the future development of agricultural technology.

The potential development of new GMOs for wheat was also mentioned. While there was a neutral sentiment towards GMOs, it was stated that there are concerns about the potential instability of GMOs. Despite this, it was noted that efforts are underway to develop new GMO wheat varieties, indicating ongoing research and attention in this area.

In addition to these topics, a query was raised regarding the data management of the ARSAT project. It was stated that the ARSAT project is responsible for handling the data, and the audience member sought clarification on who has access to the gathered satellite data and where it is located. Unfortunately, further details were not provided in the discussion summary.

Lastly, the discussion touched upon the difficulty faced by governments in deciding where to invest in research due to the constantly emerging fields. As various fields such as nanotechnology, blockchains, and genetic addition continue to emerge, governments face challenges in determining research priorities. This observation highlighted the complex nature of research investment decisions and the need for careful planning and consideration.

Overall, the discussion covered a range of important aspects related to agricultural technology. It emphasized the need for a new technological revolution, the significance of inter-country cooperation, the importance of attracting young talent, the potential for GMO development, and the challenges faced by governments in research investment decisions. However, it is worth noting that the summary lacked specific evidence or arguments supporting these points, which could have provided a more comprehensive understanding of the discussion.

Federico VILLEGAS

According to the World Trade Organization (WTO), governments around the world provide over $800 billion in annual agricultural support. However, it is argued that a significant portion of this support is environmentally harmful. The negative sentiment arises from concerns about the impact of such support on the environment.

On the other hand, Argentina serves as a shining example of how agricultural practices can be made more ecologically sustainable. They believe that science, innovation, and the adoption of advanced technology are key to achieving this goal. By synergising efforts from both the public and private sectors, Argentina has been able to embrace advanced technology and implement best agricultural practices. This has led to improved productivity while still prioritising environmental conservation.

Argentina highlights several key factors that contribute to their success in agricultural sustainability and productivity. These factors include the enablement of regulatory frameworks, the development of new plant varieties, sustainable mechanisation practices, and the use of innovative digital applications. By leveraging these tools, Argentina believes they can not only achieve food security but also ensure the long-term sustainability of their agricultural sector.

In addition to sustainable domestic agriculture, Argentina also champions fair, transparent, market-oriented international agricultural trade. They argue that this model of trade can contribute to comprehensive food security and sustainability. By advocating for a rules-based and non-distorted trade system, Argentina aims to promote a level playing field for all countries involved in agricultural trade. This approach aligns with the Sustainable Development Goals (SDGs) outlined by the United Nations.

In conclusion, the WTO reports that governments provide substantial agricultural support annually, but there are concerns about its environmental impact. Nonetheless, Argentina showcases the potential for more ecologically sustainable agriculture through science, innovation, and the adoption of advanced technology. They emphasise the importance of regulatory frameworks, new plant varieties, sustainable mechanisation, and innovative digital applications. Furthermore, Argentina advocates for fair, transparent, and market-oriented international agricultural trade as a means to achieve comprehensive food security and sustainability. Their approach aligns with the SDGs and highlights the importance of balancing economic growth with environmental conservation in the agricultural sector.

Nacira MUÑOZ

The National Institute of Agricultural Technology (INTA) in Argentina plays a key role in advancing sustainable agriculture. Established in 1956, INTA was created to promote research and extension in the agricultural sector. With a nationwide presence and 7,000 employees, INTA has a well-structured organization that includes a national directorate, regional centres, research centres, and research institutes.

One of the main focuses of INTA is understanding and addressing the impact of climate change on agricultural practices and promoting sustainable land use. They have a number of large-scale, collaborative projects that require scale-specific approaches. For instance, INTA is involved in a project focused on developing and validating a framework for sustainability evaluation. This project aims to provide a comprehensive understanding of environmental processes and management. Additionally, INTA is involved in a project that aims to calculate greenhouse emissions in the agriculture, livestock, and forestry sectors. The goal is to identify technologies that can improve the carbon balance in these sectors.

INTA is also actively involved in social projects that aim to enhance food security and value addition. For the past 30 years, they have been running the Pro-Huerta Programme, a horticultural production programme, in collaboration with the Ministry of Social Development. This programme benefits many people and helps them commercialise their excess produc. Furthermore, INTA assists in strengthening cooperatives, particularly those associated with yerba mate and artisanal cheese production.

Technological development is another priority for INTA, as they believe it is imperative for improving agricultural productivity. They have developed innovative technologies such as solar-powered cheese vats for small farmers and micro tractors. These technological advancements help farmers in their daily tasks and contribute to increased productivity.

International collaborations are a crucial part of INTA’s strategy. They currently have 72 international collaborations with 187 bilateral agreements and 65 multilateral agreements. This allows for the exchange of knowledge, expertise, and resources, strengthening their research and extension efforts.

In addition to international collaborations, INTA also recognises the importance of local investments in addressing global challenges. By investing in areas that address local issues while providing global solutions, INTA aims to create sustainable and impactful solutions. They believe that local situations cannot be ignored in favour of global solutions. Long-term plans may change due to evolving circumstances, but the focus remains on investing in local problems to find global solutions.

In conclusion, the National Institute of Agricultural Technology (INTA) in Argentina plays a crucial role in advancing sustainable agriculture. Through their research and extension initiatives, INTA addresses various challenges related to climate change, sustainable land use, food security, and value addition. Technological development, international collaborations, and local investments are integral parts of INTA’s strategy to tackle these challenges and create sustainable solutions.

Gloria Abraham

The agricultural sector in Argentina is globally renowned for its significant contribution to food security. Not only does it feed the country’s population, but it also plays a crucial role in ensuring global food security. The sector’s success can be attributed to advancements in biotechnology and digitalization. Precision agriculture and smart farming, aided by biotechnology and data analytics, have greatly improved efficiency and productivity.

Gloria Abraham emphasizes the importance of agriculture, technology, and innovation in driving the sector’s growth. She believes that traditional farming has the potential to transform into a sustainable and technologically advanced industry. Her invitation to panelists to discuss innovative strategies and practices reflects this vision. Argentina’s effective utilization of biotechnology and digitalization in agriculture further demonstrates their commitment to progress.

The development of the agricultural sector in Argentina is the result of cooperation across various sectors, including the public, private, academic, and civil society domains. This collaboration has not only achieved efficiency, sustainability, and global competitiveness, but it has also brought about transformative advancements. This collective effort serves as an exemplary model for other sectors.

The scientific community’s collaboration with technology is another crucial factor in the sector’s success. They provide technical solutions tailored to diverse bioregions, contributing significantly to production and productivity while safeguarding natural resources. The synergy between science and technology has played a vital role in the growth of the agricultural industry.

The panelists also advocate for reform in agricultural trade rules. They suggest that the World Trade Organization (WTO) should promote solutions rooted in scientific and technological knowledge to encourage sustainable food production. Reforming these trade rules, including reducing distorting domestic support, would lead to fair and sustainable practices in global food trade.

In conclusion, the agricultural sector in Argentina exemplifies the transformative power of agriculture, technology, and innovation. Through advancements in biotechnology, digitalization, and precision agriculture, the sector has become more efficient, sustainable, and globally competitive. The collaboration of multiple sectors, including the scientific community and technology, has been instrumental in achieving these results. Calls for reform in agricultural trade rules further emphasize the sector’s commitment to sustainable practices. By adopting these approaches, other nations can strive to build thriving and sustainable agricultural sectors.

Guillermo SALVATIERRA

Argentina has made significant strides in the digitalization of its agricultural sector by leveraging satellite data. The country has successfully launched eight satellites and has plans to launch three more in the future. Two key players in this domain are ARSAT and CONAI, who operate telecommunications and Earth observation satellites respectively.

ARSAT and CONAI’s satellites play a crucial role in providing essential information to farmers, especially in rural areas. For instance, they offer vital data such as soil moisture maps, which greatly assists farmers in making informed decisions about irrigation and crop management. This access to accurate and real-time information empowers farmers to optimize their agricultural practices and enhance crop yields.

Moreover, the collaboration between the technology and agriculture sectors in Argentina has resulted in the development of innovative solutions, such as Frontec. Frontec is a partnership between a technology company responsible for the development of Argentina’s satellites and Logrobo, a significant player in the country’s agribusiness. The main objective of Frontec is to help farmers make more sustainable and profitable agronomic decisions.

Frontec has achieved this goal by creating an online platform that offers site-specific farming recommendations, crop monitoring, and weather and climate data. This platform equips farmers with valuable information to enhance their decision-making processes and improve overall agricultural productivity. Thus, the successful adoption of digital farming technology, exemplified by Frontec, has had a significant broad-scale impact on Argentina’s agricultural sector.

The wide acceptance of Frontec’s services by farmers demonstrates the positive reception and effectiveness of digital farming solutions in the country. In fact, the advancements in digital farming have spurred growth within Argentina’s AgTech sector, with new startups and services emerging to cater to the evolving needs of the agricultural community.

Frontec’s influence extends beyond Argentina’s borders. The technology it has developed has been exported to other countries such as India, Ghana, and Colombia, contributing to global agricultural development. This international adoption of digital farming technology reaffirms its potential for transforming agricultural practices on a global scale.

Frontec solely focuses on providing commercial services to farmers, highlighting its commitment to serving its target audience rather than academia or researchers. This emphasis on practical applications and tangible benefits for farmers underscores the practicality and relevance of Frontec’s offerings.

In terms of infrastructure, Frontec stores its information and platform on Amazon Web Services (AWS), leveraging the cloud storage capabilities provided by the platform. This ensures the accessibility and reliability of the data and services offered by Frontec, allowing farmers to access the platform conveniently and efficiently.

Additionally, there is a potential collaboration between Frontec and ARSAT. ARSAT, having recently developed its own cloud service, presents an opportunity for synergistic collaboration, enhancing the services and offerings of both entities.

The combination of information and technology, encompassing satellite technology, is highlighted as a critical mission for future agriculture. Utilizing satellite technology, along with other digital farming tools, can effectively address agronomic gaps and contribute to sustainable agricultural practices. This holistic approach aligns with the mission economy concept advocated by economist Mariana Mazzucato, emphasising the importance of focused investment and effort in specific areas to drive economic growth and development.

In conclusion, Argentina’s digitalization of its agricultural sector through satellite data has yielded significant benefits. The successful launch of multiple satellites, the emergence of innovative solutions like Frontec, and the widespread adoption of digital farming technology all demonstrate Argentina’s commitment to advancing its agricultural practices. These advancements not only have a positive impact locally but also contribute to global agricultural development. By leveraging information and technology, Argentina is at the forefront of addressing agronomic challenges and embracing a mission economy approach to drive sustainable growth in the agriculture sector.

Agustín TORRIGLIA

Agustin Torriglia is a passionate advocate for sustainable agriculture, promoting a vision of sustainable agricultural production. His NGO, PRECID, is dedicated to promoting sustainable fibre and energy production systems through innovation and knowledge networks. Torriglia’s approach involves implementing no-till farming and crop diversification to reduce environmental impact, optimize production, and foster innovation in the agricultural sector.

One supporting fact for Torriglia’s argument is the significant scale at which his NGO operates. PRECID has over 1,800 members producing and managing more than 11 million hectares of land. This demonstrates widespread interest and commitment to sustainable agriculture.

Another important piece of evidence is the impact of these sustainable farming techniques on yield and environmental sustainability. Torriglia reports a 28% increase in yields, a noteworthy achievement. By adopting no-till farming and diversifying crops, Argentinian farms have not only optimized production but also reduced the use of fossil fuels. Additionally, these practices have contributed to increased carbon sequestration, crucial for mitigating climate change.

The fact that Argentinian farms are already adopting these sustainable practices further strengthens Torriglia’s argument. This adoption is leading to a reduction in carbon emissions in the agricultural sector, contributing to global efforts to combat climate change. Furthermore, Torriglia’s work involves adapting these practices to different geographical areas, ensuring wider benefits from sustainable agriculture.

In addition to sustainable farming practices, Torriglia emphasizes the importance of involving the younger generation in agronomy. He believes promoting participation by the younger generation is essential for the future of sustainable agriculture. To achieve this, training facilities are provided, allowing young individuals to learn and gain hands-on experience in agronomy. Furthermore, farm visitation programs are organized to expose them to practical farming techniques.

Torriglia also advocates for interdisciplinary cooperation in the field of agronomy. He believes including professionals from other disciplines such as biology and data science will bring fresh perspectives and innovative solutions to the agricultural sector. Collaborating with biologists and data scientists, agronomists can benefit from their expertise and address challenges more effectively.

In conclusion, Agustin Torriglia is an advocate for sustainable agricultural production, and his work through PRECID demonstrates the positive impact of sustainable farming techniques. These practices have led to increased yields, reduced environmental impact, and carbon sequestration in the Argentinian agricultural sector. Torriglia also emphasizes the importance of involving the younger generation in agronomy and promoting interdisciplinary cooperation for future advancements in sustainable agriculture.

Speakers

Knowledge Graph of Debate

Session report

Audience

The discussions convened focused on various topics related to responsible consumption and production, climate action, and trade policies. One topic was the demand from consumers for platforms to respond to their environmental concerns. It was recognised that consumers want platforms to take initiatives to reduce their environmental impact, highlighting the importance of sustainability measures in business practices.

Another topic discussed was the expectation for firms and producers to report their environmental footprints. It was emphasised that even small and medium-sized enterprises should be accountable for their environmental impact. This emphasises the significance of transparency and accountability in achieving sustainability goals.

The discussions also addressed initiatives in Germany to address plastic usage, highlighting the potential impact of trade policies on reducing environmental harm. It was recognised that by addressing key trade policy areas, countries can make significant strides towards achieving environmental sustainability.

Furthermore, the need to create linkages between various ministries to form cohesive trade and environmentally-friendly policies was mentioned. It was emphasised that policies created outside of the trade ministry should be linked to trade policies. This underscores the importance of inter-ministerial collaboration in developing comprehensive and effective policies that address both economic and environmental concerns.

The discussions also touched upon the impact of platforms like MercadoLibre on sustainability. The audience expressed curiosity about MercadoLibre’s effect on their suppliers’ packaging material and how the company ensures alignment with their sustainability strategy. This reflects the growing interest in understanding the role online marketplaces play in promoting sustainable practices throughout the supply chain.

The issue of e-waste in e-commerce was also addressed, with some e-commerce companies taking steps to tackle e-waste through take-back, reuse, and repair policies. Partnerships with local communities that recycle were also mentioned. However, e-waste remains a significant problem in the e-commerce industry, necessitating more comprehensive and standardized approaches to manage it.

In conclusion, the discussions underscored the importance of responsible consumption and production, climate action, and trade policies in achieving sustainability goals. The role of consumers, businesses, and governments in driving these efforts was highlighted. Overall, there is a growing awareness and urgency to address environmental concerns and take concrete steps towards a more sustainable future.

Shamika Sirimanne

In the analysis of various arguments regarding e-commerce and its impact on the environment, several key points were made. It was highlighted that e-commerce needs to address environmental sustainability issues early on before it’s too late. The negative sentiment towards e-commerce’s impact on the environment stems from concerns of overconsumption and increased production due to convenient online shopping. The argument is that the ease of online shopping might lead to higher levels of consumption, resulting in more waste and resource depletion. This argument suggests that e-commerce should be cautious about its potential contribution to the problem of excessive consumption which negatively impacts the environment.

On the positive side, it was argued that online shopping could actually be more energy and carbon efficient compared to driving to physical stores. This is because, in online shopping, the transportation and storage aspects are optimized, reducing the overall carbon footprint. Additionally, it was noted that digital products, such as e-books, create less physical waste compared to their physical counterparts. This positive sentiment suggests that e-commerce has the potential to offer environmental opportunities and contribute to sustainable consumption and production.

Another negative point raised was regarding the last-mile delivery, which is seen as the most costly and potentially polluting segment of the e-commerce supply chain. The argument is that changes in transportation and storage methods could lead to a reduction in environmental impact. This points to the need for innovative solutions in logistics and delivery to mitigate the negative effects of e-commerce on the environment.

Additionally, data centers used in the digital economy were highlighted for their substantial energy and water consumption. The argument here is that the high energy and water usage of data centers, which contribute to carbon emissions and water scarcity, need to be addressed to minimize the environmental impact of e-commerce.

The analysis also emphasized the need for more conscious efforts to lessen the environmental impact of e-commerce. This includes breaking down the supply chain into its individual stages to understand the environmental outcomes at each stage. However, it was noted that statistical data on e-commerce and its environmental impact is lacking, highlighting the need for robust research in this area.

Furthermore, it was suggested that there is a need for methodology and data to measure and understand the connection between e-commerce and the environment. Currently, the lack of a standardized way to measure and track green practices along the e-commerce supply chain hinders effective assessment and monitoring of environmental outcomes.

The importance of collaboration among governments, businesses, and consumers to protect the environment was also highlighted. It was argued that governments should implement regulations to ensure environmental adherence, while businesses should strive to be environmentally friendly. Similarly, consumers were encouraged to make informed choices and support environmentally conscious businesses, even if it means paying a bit more.

Another interesting observation was the positive impact of women entrepreneurs in promoting greener businesses and sustainability in e-commerce. Women were noted to be more conscious about sustainability and saving the planet, which has led to the emergence of women-led platforms that focus on green practices.

In engaging in the digital economy and e-commerce, it was highlighted that the responsibility does not solely lie with one ministry. Various ministries, including trade, ICT, regulatory bodies, and central banks, need to come together to assess and support countries’ readiness to engage in e-commerce and the digital economy.

The importance of regulations and incentives in the realm of digital technology was also emphasized. Examples were given, such as the regulation on single-use plastics in Germany and Kenya, and the voluntary adoption of certain standards by companies like Mercado Libre. These examples highlight the role of regulations and incentives in encouraging environmentally friendly practices within the digital economy.

However, the issue of data governance was noted to be often overlooked by trade ministries in many countries. Data governance is crucial for ensuring the ethical and responsible use of data in the digital economy.

Lastly, the importance of addressing the issue of e-waste was emphasized. E-waste, resulting from outdated or discarded electronic devices, poses a significant environmental challenge. The need to develop strategies and standards to manage and reduce e-waste was reiterated.

In conclusion, the analysis of the arguments regarding e-commerce and its environmental impact showcased both positive and negative aspects. While there are concerns about overconsumption, increased production, and the environmental impact of last-mile delivery and data centres, there are also opportunities for e-commerce to be more energy efficient, generate less waste, and contribute to sustainable consumption and production. The overall sentiment highlights the necessity for conscious efforts, data-driven research, collaboration among stakeholders, regulations, incentives, and addressing gaps in data governance to mitigate the negative environmental consequences associated with e-commerce.

Nicolas Palau

Colombia has experienced a significant surge in e-commerce in recent years, both in terms of monetary value and transaction volumes. However, concerns have been raised about the environmental impacts of this growth. Both the government and private producers in Colombia are starting to consider the externalities of e-commerce.

One major concern is the excessive use of packaging materials, with over 3 billion trees estimated to be used annually for packaging products traded through e-commerce platforms. This leads to deforestation and contributes to waste through increased demand for cardboard and plastic. The energy, water, and resource consumption of data servers and centers required for e-commerce operations also add to the environmental footprint.

Another factor contributing to the environmental impact of e-commerce is the high rate of product returns, which generates additional waste. The growth of e-commerce has led to increased use of cardboard, plastics, energy, and fuel, further exacerbating environmental degradation.

While Colombia has shown initiatives on the sustainable use of plastics and packaging, these efforts are not directly linked to e-commerce. More targeted measures and initiatives are needed specifically to address the environmental impact of e-commerce, evaluating the use of energy, plastics, cardboard, and fuels in these operations to mitigate their detrimental effects.

However, it is important to consider the potential impact of environmental measures on e-commerce businesses in developing countries. E-commerce presents an opportunity for small companies and vulnerable entrepreneurs, as well as economic growth through export opportunities. Measures implemented to address environmental concerns should not hinder the development of e-commerce businesses in these regions.

Accurate and comprehensive information is crucial to effectively address the environmental impact of e-commerce. Measurement tools and data collection are essential to understand the extent of the environmental effects and identify cost-effective measures for policy implementation.

Environmental implications are often neglected in international treaty discussions regarding e-commerce. Including environmental discussions within e-commerce treaty negotiations is important to adequately address environmental concerns and integrate them into international agreements.

Mercado Libre, a leading e-commerce platform, has implemented a green strategy that enhances its competitiveness. The strategy attracts sustainability-focused users, increasing the platform’s revenue. Additionally, the strategy allows Mercado Libre to reach populations that would not typically have online access, aligning with Sustainable Development Goals related to responsible consumption and production as well as climate action.

Nicolas Palau, an advocate for sustainable practices, believes that Mercado Libre’s green strategy benefits the environment and the company’s competitiveness. Appealing to sustainability-minded customers helps increase revenue and expand the customer base.

In conclusion, while e-commerce presents economic opportunities, it is crucial to address its environmental impacts. Colombia’s experience highlights the importance of targeting packaging waste, energy consumption, and product returns in e-commerce operations. Measures and initiatives must be implemented to mitigate these challenges, balancing economic growth with environmental sustainability. Including environmental discussions in international e-commerce treaty negotiations and ensuring wider participation in policy-making processes are vital steps towards achieving this balance.

Yasmin Ismail

The environmental impacts of e-commerce are often overlooked in policy debates, despite the significant waste generated by online purchases. For example, a family ordering school supplies online resulted in the delivery of nine cardboard boxes, 17 plastic wrappings, and four transported deliveries. This highlights the scale of waste that can be generated from a single transaction.

It is crucial to discuss the connection between e-commerce, the environment, and development. However, the given information does not provide supporting evidence for this argument.

To address this issue effectively, gathering more data and involving all stakeholders in the debate is essential. This comprehensive approach would provide a better understanding of the environmental impacts of e-commerce and enable the development of sustainable policies.

Breaking down the silos between ministries is also important. Collaboration and cooperation between different governmental departments are needed to create effective policies that address the environmental challenges posed by e-commerce.

Implementing proactive trade policies is also necessary. By incorporating environmental considerations into trade negotiations, the harmful impacts of e-commerce on the environment can be addressed. Unfortunately, specific details about these policies or their benefits are not mentioned.

To avoid creating a zero-sum game between e-commerce and the environment, policies should be designed to ensure that both sectors can thrive without compromising sustainability goals. Balancing economic growth with responsible consumption and production is paramount to achieving long-term environmental sustainability.

In addressing these issues, support from relevant organizations, such as BMZ (exact description not provided), is critical. Their involvement can provide the necessary resources and expertise to drive progress in this area.

Lastly, fostering communication between different e-commerce platforms, like MercadoLibre, can effectively disseminate best practices and promote sustainable approaches across the industry. Engaging multiple platforms in the conversation would contribute to a collective effort in addressing the environmental challenges of e-commerce.

In conclusion, the environmental impacts of e-commerce are often neglected in policy debates, despite the significant waste generated by online purchases. It is essential to discuss the connections between e-commerce, the environment, and development, and gather more data on these impacts. Breaking down silos between ministries, implementing proactive trade policies, and avoiding a zero-sum game between e-commerce and the environment are crucial steps. Moreover, support from organizations like BMZ and improved communication between platforms like MercadoLibre are necessary to address these issues effectively.

Christian Bilfinger

The analysis explores a range of perspectives on topics such as e-commerce, sustainability, and digitalization. One viewpoint expresses a negative sentiment towards the environmental impact of e-commerce and digital transformation. The argument is that these practices have a strong influence on the environment. Supporting facts include the high percentage of consumers in Germany who regularly purchase goods and services through online marketplaces, as well as the significant number of companies conducting their business online. However, the analysis also presents a positive perspective on the importance of strategy, regulation, and incentives for green e-commerce and digitalization. The argument is that without these factors, achieving sustainability goals in these areas would be challenging. Germany is highlighted as a country that has enacted and planned 70 steps of regulation for green e-commerce, aimed at reducing emissions and achieving greenhouse gas neutrality by 2045. Additionally, businesses in Germany are voluntarily reporting sustainability targets and reductions in greenhouse gas emissions, which are seen as creating momentum for a shift towards sustainable business models. Transparency for consumers is viewed as a positive factor that can motivate green choices. E-commerce platforms in Germany are starting to report sustainability targets, which helps consumers make informed decisions. Initiatives like Fashion Leap For Climate are also encouraging brands to set sustainability targets, further promoting transparency. The analysis suggests that businesses should voluntarily adopt sustainability practices and be transparent about their environmental impact. It is argued that this can have a positive effect on shifting towards sustainable business models. Evidence supporting this standpoint includes German e-commerce platforms voluntarily reporting sustainability targets and reductions in greenhouse gas emissions, as well as incentivizing brands to set sustainability targets. The analysis also recognizes the significance of digitalization in reaching sustainable development goals globally. It is argued that increasing digitalization is necessary to achieve the Sustainable Development Goals and the Agenda 2030. However, the analysis also notes that for trade to contribute to sustainable development, the rules surrounding it need to be established correctly. Another notable point is the importance of increasing developing countries’ participation in global rulemaking. The analysis stresses that their involvement needs to be enhanced for a more equitable decision-making process. The analysis also highlights the support available for African partner countries in digitalizing their economies. Germany’s new Africa strategy emphasizes supporting these countries in their digitalization efforts. Furthermore, there is an emphasis on the need to work closely with SMEs, especially women-led SMEs, to promote greener e-commerce business models. The implementation of the Pan-African e-commerce initiative is cited as an example of on-the-ground solutions working with SMEs to address challenges. The analysis also highlights potential challenges such as reporting regulations that could hinder SMEs. It is argued that zero-sum games should be avoided, wherein SMEs are negatively impacted by reporting requirements. The need for governments to establish common reporting standards is stressed, as SMEs often face difficulties due to varying reporting regimes. The analysis emphasizes the importance of sequencing reporting obligations based on company sizes. An example is given of Germany’s supply chain due diligence act, which highlights the significance of aligning reporting obligations with company capacities. The need to provide technical assistance to SMEs is recognized, with an emphasis on listening to the challenges faced by these companies and designing programs accordingly. Finally, the analysis suggests improving donor coordination as a positive action to enhance sustainable development efforts. In conclusion, the analysis presents a range of perspectives on e-commerce, sustainability, and digitalization, with both positive and negative sentiments expressed. The importance of strategy, regulation, and incentives for green e-commerce and digitalization is emphasized, along with the role of transparency and voluntary adoption of sustainability practices by businesses. The significance of digitalization in achieving sustainable development goals globally is acknowledged, as well as the need for trade, developing countries’ participation in global rulemaking, and support for African partner countries in their digitalization efforts. Working closely with SMEs, ensuring common reporting standards, providing technical assistance, and improving donor coordination are also seen as essential actions for sustainable development.

François Martins

MercadoLibre, a prominent e-commerce platform in Latin America, has demonstrated a strong commitment to sustainability and responsible consumption. From the very beginning of its operations, the company recognized the potential environmental impact of its business and adopted strategies to mitigate these effects. This commitment is reflected in its environmental management and impact mitigation efforts, which are integrated into its core business model from the outset.

One key aspect of MercadoLibre’s sustainability initiatives is its focus on implementing sustainable transportation methods. The company has taken steps to reduce emissions and promote cleaner mobility by utilizing trucks that run on natural gas and employing electric vehicles for local deliveries. By adopting these eco-friendly alternatives, the company aims to minimize its carbon footprint and contribute to global efforts towards climate action.

Furthermore, MercadoLibre has also taken significant steps to power its business and data centres using solar energy, thus reducing its reliance on non-renewable energy sources. This commitment to sustainable energy is in line with its goal of responsible consumption and production, as outlined in SDG 12.

In addition to its efforts in transportation and energy management, MercadoLibre actively promotes the use of sustainable practices within its packaging policies. Through its 3P model, where sellers use the platform to sell items, the company has implemented strict packaging regulations to minimize environmental impact. It guides sellers on which packaging materials to use based on considerations such as volume, visibility, and the level of pollution generated by specific materials.

MercadoLibre’s sustainability initiatives also extend beyond its operations and into reforestation programs. The company invests in forests across various regions, including Brazil, Argentina, Colombia, and Mexico, to sequester the carbon emissions it is yet unable to avoid. Its reforestation efforts are part of its ‘Regenera America’ program, highlighting its commitment to climate action as per SDG 13.

Moreover, MercadoLibre recognizes the importance of supporting indigenous communities and promoting sustainable e-commerce. In Latin America, where the platform operates, there are vast wildlife preservation reserves and significant indigenous populations. MercadoLibre sees these communities as key players in the sustainable e-commerce sector, with their unique cultural products bringing value to the market.

François Martins, a proponent of corporate responsibility, emphasizes that businesses should take responsibility for their environmental impact and work towards more sustainable practices. MercadoLibre fully aligns with this stance, as it has been actively working on environmental management and impact mitigation since its inception. It links its mitigation efforts directly to its core business model, ensuring that sustainability is integrated throughout its operations.

Another notable observation is the importance of democratizing a new kind of economy for sustainable e-commerce in Latin America. This includes highlighting the role of Afro-entrepreneurship in wealth creation in countries such as Brazil and Colombia. Additionally, MercadoLibre supports this vision by offering a sustainable products section on its platform, consisting of a wide range of over one million sustainable products listed.

However, one challenge lies in the need for consumers to be willing to pay more for sustainable products and services. While the sentiment towards the importance of sustainability is positive, this concern suggests that further education and awareness may be necessary to bridge the gap between consumer willingness and sustainable consumption.

Overall, MercadoLibre stands out as a champion of sustainability in the e-commerce industry in Latin America. Its proactive approach and concrete actions towards reducing environmental impact, promoting sustainable business practices, and supporting indigenous communities make it a noteworthy example of responsible and sustainable business operations.

Speakers

Knowledge Graph of Debate

Session report

Elizabeth Kirk

Digital technologies, such as blockchain, have the potential to revolutionise supply chains by enabling the tracing of product sustainability from their origin to consumers. For instance, these technologies can be used to trace the sustainability of a cotton T-shirt or the source of leather in shoes. This use of digital tracking aligns with the growing emphasis on environmental and social governance (ESG) standards.

Successful implementation of these technologies requires cooperation along the value chain. Collaboration between big brands, situated downstream and facing consumers, and upstream suppliers is essential. By working together, brands and suppliers can overcome challenges and ensure the effective adoption of digital tracking technologies, ultimately contributing to sustainable development.

Furthermore, it is important to recognise the role of these technological efforts in promoting exports of developing countries and Least Developed Countries (LDCs). By leveraging digital tracking technologies, developing nations can overcome trade barriers and harness opportunities for economic growth. A high-end supply chain example showcased the potential benefits that this approach could bring to developing countries and LDCs if scaled up.

It is worth noting that different value chains require different strategies and tools for digital tracking. For example, tracing cotton into a T-shirt necessitates different methods and technology compared to tracing leather into shoes due to variations in bulk and physical marking requirements. Therefore, tailored approaches must be adopted to accommodate the specific needs of different value chains.

Sustainable development encompasses three crucial elements: social, environmental, and economic. These aspects are interconnected and must be considered holistically to achieve genuine sustainable development. As a result, efforts towards sustainability should balance these elements and address the complex challenges that arise.

The textile industry is facing increasing levels of regulation. The EU, for instance, has multiple legislative acts under development that will impact textile companies. While these regulations aim to promote responsible consumption and production, they also pose challenges, particularly for countries in the global South. It is crucial for textile companies to adapt and comply with regulatory frameworks while navigating the complexities of the global market.

Cooperation along the value chain plays a vital role in addressing challenges and establishing long-lasting relationships. By working together, suppliers and brands can navigate the complexities of sustainability initiatives and mutually benefit from cooperation. Building long-term collaborations strengthens the value chain and supports the achievement of sustainability goals.

However, developing nations face unique challenges in accessing digital infrastructure and producing sustainably. Limited access to digital infrastructure and inadequate skills pose obstacles to harnessing the potential of digital tracking technologies. Additionally, there may be insufficient capacity to produce sustainably. Addressing these challenges requires concerted efforts to bridge the digital divide and build the necessary capacity for sustainable production.

In conclusion, digital technologies, particularly blockchain, can enhance supply chain transparency and traceability, ensuring products meet ESG standards. Cooperation along the value chain is essential for the successful implementation of these technologies and the promotion of sustainable development. Efforts should be made to overcome trade barriers and increase exports of developing countries and LDCs. Sustainable development should encompass social, environmental, and economic aspects, taking a holistic approach. The textile industry is experiencing increased regulation, and cooperation within the value chain is vital for adapting to these changes. Developing nations face challenges in accessing digital infrastructure and producing sustainably, highlighting the need for supportive measures.

Audience

During the discussions, several topics were explored, including trade barriers, inclusive growth, climate change mitigation, sustainability initiatives, digitalization, and the global supply chain. One important issue highlighted was the pricing disparity in the textile industry, particularly in developing countries. It was noted that in a $10 T-shirt sold in New York, the cotton produced in countries like Pakistan only earns the farmer a mere five cents. This pricing disparity was seen as a hindrance to inclusive growth and development in these countries.

The participants also discussed the need for developing countries to play an active role in climate change mitigation measures. It was argued that developing nations should take responsibility and actively engage in efforts to address climate change. However, concerns were raised about the recurring issue of reckless accrual of debt by the political class in these countries, even as they profess commitment to climate actions. Instances where the nation’s macroeconomic structure has been damaged due to reckless borrowing were pointed out, indicating the need for better financial management.

Affordability and accessibility of sustainable initiatives for mid-size and local brands emerged as a concern. One participant, an entrepreneur working with micro-small businesses, expressed worry about how these businesses would be able to afford and implement sustainable initiatives. Recognizing the competitive nature of the textile and leather goods markets, the discussion highlighted the potential impact of increasing environmental barriers on jobs and overall growth.

The tension between digitalization and green supply chains was discussed, with one attendee noting that these two concepts can sometimes be conflicting. While digitalization is seen as a driver of economic growth and profitability, there is a need to balance it with environmentally-friendly practices. This raises the question of how businesses can navigate this tension effectively and ensure both economic and environmental sustainability.

Understanding and implementing macro-level trade policies were also identified as a challenge for businesses. It was pointed out that macro-level trade talks often do not make sense to businessmen, and there is a need for policymakers to provide clearer explanations on how these policies can help in practical business implementation. By doing so, it would enable businesses to fully comprehend the benefits and opportunities available from these policies.

Furthermore, the importance of partnerships in driving work in less developed countries (LDCs) was highlighted. One attendee, a businessman, expressed an interest in finding partners to support initiatives in LDCs. This emphasis on partnerships aligns with the SDG 17 goal of fostering partnerships for the goals, indicating the recognition of the collaborative efforts required to achieve sustainable development.

The distribution of value along the global supply chain was identified as another significant issue. The discussions pointed out that this problem extends beyond the raw material sector and also affects the manufacturing sector. Participants highlighted the need to address and attribute value properly along the supply chain, ensuring that all stakeholders receive fair compensation for their contributions.

Lastly, the importance of focusing on the lower levels of the supply chain, such as farmers, when addressing digitalization and environmentally-friendly solutions, was emphasized. One participant shared their experience working in Ethiopia with tech startups and farmers and pointed out the challenges including digital literacy, connectivity, and convincing farmers of the worth of adopting green solutions.

In conclusion, the discussions covered a range of important topics related to trade, sustainability, and inclusive growth. It highlighted the need for fair pricing in the textile industry, active participation of developing countries in climate actions, affordability and accessibility of sustainable initiatives for local brands, finding the right balance between digitalization and green supply chains, addressing challenges in understanding and implementing macro-level trade policies, fostering partnerships in less developed countries, properly attributing value along the global supply chain, and focusing on farmers in the adoption of digitalization and environmentally-friendly solutions. Overall, these discussions shed light on the complexities and interconnectedness of these issues and the need for collaborative efforts to achieve sustainable development.

Yasmin Ismail

In a recent report by the International Telecommunication Union (ITU), it was revealed that the infrastructure and connectivity divide in Least Developed Countries (LDCs) is still widening. This presents a major barrier for these countries in their digital transformation efforts. However, there is hope for improvement, as there is an increasing political will to address this issue. This can be seen in the Doha Programme of Action, which mentions the term ‘digital’ 82 times, demonstrating a clear focus on digitalisation. In contrast, the Istanbul Program of Action only mentions it six times. This increased political will is considered an asset and provides opportunities for digitalisation in LDCs.

One of the key factors that can drive digital adoption in LDCs is their young population. The majority of the population in LDCs consists of young people who are more proficient in using digital tools. This presents an opportunity for LDCs to harness the potential of their youth and encourage widespread adoption of digital technologies.

Furthermore, some countries within the LDC group, particularly those in Group 1, have showcased significant progress in terms of ICT indicators. This indicates that despite the widening connectivity divide, there are success stories within LDCs that demonstrate the potential for digital adoption and advancement.

Another noteworthy observation is the existence of successful examples of digital technologies being utilised to promote greener supply chains in LDCs. For instance, Rwanda has partnered with a technology company that uses satellite imaging to monitor deforestation in coffee farms. Ethiopia has also leveraged online vehicle booking systems to minimise carbon emissions associated with incoming vessels and flights. These examples highlight the positive impact that digital technologies can have on promoting sustainability and responsible consumption and production in LDCs.

However, it is important to note that the adoption of green practices in LDCs requires support from developed countries. The implementation of green standards and protocols is increasing, but without the necessary aid, less developed regions may face difficulties in implementing these practices. Effective partnerships and cooperation are essential to transform barriers into effective needs and ensure the successful adoption of green practices in LDCs.

Furthermore, adopting green practices and standards now can lead to cost savings in the future for companies and countries. With increasing environmental awareness among future generations, there is likely to be a rush to adopt green regulations. Failing to comply with these regulations may result in higher costs. Therefore, companies and countries that prioritise the adoption of green practices now are better positioned for a forward-looking and optimised future.

However, the complexity and interdisciplinarity of tasks related to digital transformation and green practices pose a challenge in finding collaboration partners. These tasks often require multiple partners, making collaboration time-consuming and costly. Addressing this challenge and fostering effective cooperation is crucial to provide the necessary support to LDCs and ensure their successful digital transformation.

In conclusion, while the connectivity divide in LDCs remains a significant barrier, there are positive developments and opportunities for digitalisation. Political will, the young population, significant progress in digital adoption, and successful stories serve as blessings that can pave the way for the digital transformation of LDCs. Addressing the challenges and barriers through effective partnerships and cooperation, along with the adoption of green practices, will contribute to a more sustainable and inclusive future for LDCs.

Kemvichet Long

The Pentagon Strategy, implemented by Cambodia, focuses on transitioning the country into a green and digital innovative economy. This strategy is influenced by geo-economic fragmentations, environmental and climate change concerns, and the need to adapt to digital transformation. The strategy has several key elements, including sustainability and readiness for climate change.

One of the main focuses of the Pentagon Strategy is the development of key sectors for economic growth. This is done by incentivising investment in affordable clean energy, which is seen as crucial for fostering economic diversification and enhancing competitiveness. The strategy also emphasises the importance of developing high-value industries, such as through the transformation of commodity exports into high-value products and services to increase value addition.

Cambodia’s support for ASEAN’s vision for transitioning into a green community and digital innovation is also highlighted. This support is evident through the adoption of tools for green transition, such as the Framework for Circular Economy and Strategy for Carbon Neutrality. Additionally, Cambodia’s digital innovation efforts are backed by the Digital Economic Framework Agreement.

Brands are increasingly looking for reduced carbon footprints, which poses a burden on manufacturers in Cambodia. These manufacturers risk losing business if they fail to reduce their carbon footprints, putting pressure on them to meet these sustainability expectations. The garment industry, which employs over 800,000 people in Cambodia, is particularly affected by these demands.

Another important aspect highlighted in the summary is the need for sustainable digitalisation. While digitalisation brings numerous opportunities, it is essential to ensure that it is not a major consumer of non-renewable energy. The energy consumption of big servers used in digitalisation processes should be considered, and the source of this energy should be taken into account to ensure sustainability.

Lastly, good governance is emphasised as a crucial element in policy implementation. In the Pentagon strategy, good governance is placed at the centre, acknowledging the significance of effective governance in ensuring successful implementation and achieving desired outcomes.

In conclusion, the Pentagon Strategy implemented by Cambodia aims to transition the country into a green and digital innovative economy. It focuses on sustainability, readiness for climate change, and the development of key sectors for economic growth. The strategy emphasises the importance of green and digital economic sectors, high-value industries, and good governance. Additionally, brands’ demands for reduced carbon footprints and the need for sustainable digitalisation are key considerations in Cambodia’s economic development efforts.

Moderator

The potential of digitization in greening supply chains in Least Developed Countries (LDCs) is being discussed as a tool for promoting environmental sustainability and inclusive economic development. Digital technologies are believed to play a significant role in reducing the environmental impacts of supply chains in LDCs, promoting transparency, and driving digital adoption. The joint organization of a meeting by the Mission of Cambodia and the World Trade Organization (WTO) highlights the importance of this topic.

In addition to greening supply chains, digitization is seen as a means to explore other opportunities for environmental sustainability and economic development. There is a need to leverage digital technologies to address challenges and achieve inclusive sustainable growth. This can be done by creating an enabling environment for digital adoption in LDCs, fostering partnerships, and promoting transparency.

Promoting sustainable inclusive development is considered a crucial goal for LDCs in their efforts to overcome poverty. By focusing on inclusive development, LDCs can ensure that the benefits of economic growth are shared equitably among all segments of society. This aligns with the United Nations’ Sustainable Development Goals (SDGs) of reducing poverty and inequalities (SDG 1 and SDG 10).

The advancement of the digital economy was a key outcome of the recently held G20 Summit. This highlights the global recognition of the importance of digital technologies in driving economic growth and fostering innovation. The G20 Summit, which took place in India, was considered a successful event in terms of advancing the digital economy.

The Moderator has a strong positive stance towards the potential of digitization and the digital economy in fostering inclusive sustainable development. This stance is supported by the joint organization of the meeting by the Mission of Cambodia and the WTO, the discussion of the potential of digitization for greening supply chains in LDCs, and the mention of the recent G20 Summit and its focus on the digital economy.

In striking a balance between the transition to a green economy and meeting basic necessities, it is important to ensure that the transition does not hinder access to basic services, such as power, in countries of the global south. This is highlighted by the fact that many countries in the global south still have populations that lack access to power, which is a basic necessity. The transition to a green economy should consider the basic needs of the people and ensure that access to power is not compromised.

The weak implementation of laws and regulations is identified as a significant problem in developing countries. This weak implementation is often attributed to a number of factors, which hinder the effective enforcement of laws and regulations. This poses a challenge for achieving sustainable development and addressing various issues, including environmental sustainability and combating corruption.

Regional approaches are seen as a viable solution to deal with climate change. Climate issues are considered exogenous and are not confined to the boundaries of a single country but can have regional implications. The understanding developed by the ASEAN body, which emphasizes regional cooperation to tackle climate change, can serve as a model for other LDCs and developing nations.

Sustainability is recognized as a concept with multiple dimensions, encompassing the environment, the economy, and equity. Achieving sustainability requires a holistic approach that considers these dimensions and seeks to strike a balance between various interests and priorities.

The need to revise or reform industrial development strategies is identified as an important step to address the challenges and problems faced by industries in the present context. By reassessing and reshaping their industrial development strategies, countries can better adapt to the changing economic landscape and ensure sustainable and inclusive growth.

The United Nations Economic Commission for Europe (UNECE) focuses on using digital technologies, particularly blockchain, for traceability and compliance with environmental, social, and governance (ESG) standards in value chains. They have developed a system that utilizes blockchain to trace the cotton in a T-shirt, ensuring that consumers are informed of sustainable purchasing choices. This project is supported by the European Commission and highlights the potential of digital technologies for promoting sustainability and responsible consumption.

It is emphasized that digital and green initiatives should create development benefits for the global south and not become trade barriers. Elizabeth Kirk believes that these initiatives should aim to increase exports in developing countries and LDCs through digitization and sustainability. They should be designed in a way that promotes inclusive growth and reduces inequalities.

However, there is a concern that ESG could become a new trade barrier impacting developing and least developed countries. This suggests that there is a need to carefully navigate the potential conflicts between ESG requirements and the economic development goals of these countries. It is important to strike a balance between ESG compliance and the ability of these countries to grow their economies and reduce poverty.

Inclusive development is recognized as a critical aspect of the ESG debate. It is highlighted that ESG is not just about corporate social responsibility but also about creating better jobs and promoting inclusive growth. This emphasizes the need to ensure that ESG policies and practices consider the needs and aspirations of all segments of society.

There can be economic disparities in trade pricing, as illustrated by the example of a T-shirt sold for $10 in a high-end location like Fifth Avenue in New York, while the cotton farmer in Pakistan receives only five cents. This reveals a significant disparity in income distribution within the supply chain.

The moderator expresses concern about how new barriers like ESG could impact jobs, growth, and development if not properly addressed. This emphasizes the importance of considering the potential impacts and unintended consequences of ESG requirements to ensure that they do not hinder economic growth and development.

Balancing green and inclusive growth is deemed necessary to ensure that economic development is sustainable and benefits all members of society. It is recognized that while a focus on environmental sustainability is important, it should not come at the expense of inclusive economic growth, particularly in developing countries and LDCs.

Governance and corruption are identified as significant hurdles in achieving climate goals and promoting sustainable development. The implementation of climate change initiatives and sustainable practices is hindered by problems such as corruption and misused funds. These issues need to be addressed to ensure effective governance and the efficient utilization of resources.

The complexity of bringing sustainable initiatives to local and mid-sized brands is acknowledged. This involves challenges related to scalability and affordability. The need for support and assistance in overcoming these challenges is recognized to promote sustainable practices in a wide range of businesses.

Singapore is acknowledged as a role model for LDCs in terms of good governance. The country has been recognized for its minimal corruption, and the leadership of Lee Kuan Yew is cited as an example of effective governance. This illustrates the importance of good governance in achieving sustainable development.

Small businesses may face conflicts between greening the supply chain and digitization. The compatibility of these two initiatives is questioned, particularly in the context of small businesses where digitization is seen as a means to increase profits. This highlights the need to carefully balance environmental sustainability with the economic realities faced by small businesses.

There is a gap in understanding and application between high-level trade policies and their implementation in practical business operations. This poses challenges for businesses on the ground who may struggle to comprehend and implement trade-related policies. Efforts to simplify trade talk and translate policies into practical help for businesses are needed.

The textile sector is increasingly regulated, with multiple legislative acts under development in the European Union that will impact textiles and clothing companies. These regulations will cover various aspects, including green claims, labels, waste, and due diligence. This highlights the growing focus on sustainability and responsible consumption in the textile industry.

The need to assist countries in the global south to respond to these regulations is emphasized. Projects aimed at helping countries trace products and prove compliance with ESG standards are seen as crucial in ensuring that these countries can adapt to changing regulatory requirements.

The project for sustainable initiatives is recognized as not yet scalable or affordable. The cost of the final product resulting from the project is high, making it inaccessible for many consumers. This highlights the need to address scalability and affordability challenges to ensure the widespread adoption of sustainable practices.

The importance of cooperation along the value chain is emphasized. By mapping farms and small suppliers and fostering long-lasting relationships, suppliers can gain access to premium markets. This highlights the role of collaboration and partnerships in promoting sustainable practices and improving competitiveness.

The adoption of climate goals by big brands has implications for manufacturers in export countries such as Cambodia. Manufacturers may face losing orders if they cannot meet the carbon footprint reduction requirements set by these brands. This highlights the impact of global sustainability initiatives on industries and economies in developing countries.

It is emphasized that tackling climate goals and implementing sustainable practices requires collaboration and involvement from various stakeholders, including government and more developed partners. Manufacturers alone cannot address these challenges, and the collective effort of all stakeholders is needed to achieve meaningful change.

Digitization, while offering opportunities for SMEs to maximize their profits, must also be mindful of its environmental impact. Digital technologies consume a significant amount of energy, and it is important to ensure that the energy source used is green. This underscores the need for a holistic approach to digitization that considers both economic benefits and environmental sustainability.

The importance of good governance is highlighted as a core element of strategies to achieve peace, justice, and strong institutions. Good governance ensures effective implementation of policies and fosters trust and accountability in society. It is seen as essential for achieving sustainable development and addressing various challenges.

Effective cooperation is emphasized as necessary to support lesser developed countries (LDCs) in overcoming challenges. LDCs often face funding constraints and complex issues that require the support of more developed partners. Effective cooperation can ensure that LDCs receive the necessary support to implement necessary changes and achieve their development goals.

The conflictual nature of digitization and green standards and their adoption by the private sector is recognized. While they may present conflicting priorities or requirements, it is believed that a forward-looking perspective should be adopted to optimize future standards. The increasing awareness of green issues among future generations makes green standards more attractive and necessary.

The interdisciplinary and complex nature of the topics being discussed is acknowledged. This complexity requires the involvement of multiple partners and increases the time and cost involved in finding solutions. It highlights the need for collaborative approaches and a comprehensive understanding of the various dimensions and challenges involved.

Finding partners to support LDCs is identified as a challenge due to a lack of funding and the complexity of the issues they face. LDCs require support from developed partners to address their challenges and overcome barriers to sustainable development. The need for financial resources and appropriate expertise is crucial in helping LDCs achieve their development goals.

Speakers

Knowledge Graph of Debate

Session report

Vincent Valentine

The creative economy is a vital contributor to the global GDP, with a value of $1.5 trillion and accounting for 3.1% of the world’s GDP. It also plays a crucial role in employment, providing opportunities for around 6% of the workforce. Despite the challenges posed by the COVID-19 pandemic, the creative economy has shown resilience, particularly in digitally deliverable services, which increased by 5%. However, small economies face hurdles in their creative economy’s growth due to poor internet connectivity and inadequate legislation. Recognising the potential of the creative economy globally is essential, as it is projected to grow by 40% by 2030. Efficient goods movement, specifically Mode 2 (movement of goods), is gradually surpassing Mode 1 (movement of people to collect goods), reflecting shifting trade patterns. However, there are concerns regarding the accuracy of trade volume estimations. Ireland beckons as a digital export hub, attracting major companies and boasting significant technological development. UNCTAD is committed to supporting small economies’ creative economies and offers assistance through initiatives like the creative economy mapping exercise. Overall, the creative economy plays a significant role in the global economy, and with the right support and investment, it can thrive and contribute to a prosperous future.

Audience

In a recent presentation, an audience member raised several questions and sought further clarification on the modes described, the impact of the diaspora on Caribbean creative industries, and the role of Public-Private Partnerships (PPPs) in investing in creative sectors. The audience member’s stance was neutral, indicating a desire for more information and discussion surrounding the key points presented.

One of the main arguments put forth was the importance of intellectual property rights in preventing industry monopolies and oligopolies. The discussion highlighted that intellectual property rights could facilitate growth within the industry by reducing barriers and competition, thereby leading to the desegregation of the sector. Additionally, it was noted that these rights provide a means of generating more revenue, emphasizing their significance in safeguarding the interests of stakeholders in the creative industry.

Dr. Nurse specifically focused on the potential of the creative economy for economic growth and development in Jamaica. Although the presentation had a positive sentiment, the audience member felt that additional details were needed regarding the practical implementation of the suggested solutions. This indicates a desire for more concrete strategies and actions to be outlined to effectively harness the economic potential of the creative economy.

The supporting facts for Ireland’s creative services were not provided, leaving the audience member without further insights into the factors that contribute to Ireland’s status as the second-largest exporter of creative services. This lack of information leaves an important aspect unaddressed.

Lastly, the discussion emphasized the importance of creating awareness and fostering dynamism for the potential of the creative economy. It was argued that by emphasizing the significance and opportunities presented by the creative economy, young people could be encouraged to stay in their countries rather than seeking opportunities elsewhere. The positive sentiment surrounding this argument suggests that raising awareness and showcasing the potential of the creative sector can be an effective means of retaining talent within a country.

In conclusion, the audience member’s inquiries and uncertainties, coupled with the positive arguments put forth regarding intellectual property rights and the potential of the creative economy, underscore the need for further exploration and practical strategies for harnessing the economic potential of the creative industries. Additionally, the lack of information regarding Ireland’s position as a major exporter of creative services warrants further investigation and discussion.

Merewalesi Falemaka

During the discussion, the speakers focused on the influence of digitisation on the creative economy, with particular emphasis on its impact on small economies and small island developing states. The advent of digitisation has acted as a multiplier for opportunities within the creative economy, addressing the issue of geographical isolation by allowing creative industries in remote areas to connect with a wider audience and market their products or services. In addition, digitisation has reduced start-up costs for these industries, providing them with a more level playing field.

However, challenges persist in the commercialisation of the creative and cultural sector. Key issues include ensuring adequate remuneration for artists and entrepreneurs, protecting intellectual property rights, addressing fragmentation, and scarcity of data. Many creative practitioners are unable to access necessary financial support because the creative industry is in its infancy stage and lacks the required mechanisms for funding.

The discussion also highlighted the significant role of culture as a driver for sustainable development. The importance of culture was recognised across various strategic frameworks in the Pacific, including the 2050 Strategy for the Blue Pacific Continent. This recognition highlights the importance of integrating culture into development initiatives, ensuring that it is not overlooked in the pursuit of sustainable growth and progress.

To further support the creative economy, the speakers proposed promoting digital trade and leveraging international platforms. The Pacific e-commerce initiative was identified as a means to improve the e-commerce system, focusing on areas such as the legal framework, ICT infrastructure and services, trade facilitation and logistics, as well as access to finance and skills. By encouraging digital trade, creative artists can establish digital businesses and reach a wider global audience, leading to increased growth and opportunities for the creative economy.

Lastly, it was mentioned that international platforms and activities play a crucial role in promoting the creative economy. The upcoming Fourth SEADS Conference in 2024 was highlighted as an initiative to build on the Samoa pathway, which recognises the significance of the creative economy in the development of small island developing states. By actively engaging with international platforms, these economies can showcase their creative industries, foster collaborations, and gain recognition on a global scale.

In conclusion, the discussion highlighted the transformative impact of digitisation on the creative economy, particularly for small economies and small island developing states. While there are challenges to overcome, such as fair remuneration and intellectual property protection, integrating culture into sustainable development strategies and promoting digital trade and international platforms can contribute to the growth and success of the creative economy in these regions.

David Strusani

The International Finance Corporation (IFC), which is part of the World Bank Group, has recently shown interest in investing in the creative industries. This decision is driven by the potential for development impact and profitable investment opportunities in this sector. The IFC has a dedicated department that focuses on disruptive technologies and has been actively investing in venture capital, early equity, and supporting start-ups in this field for approximately 15 years. Now, the IFC has expanded its focus to include the creative industries, which consist of various sectors such as audio and visual media, fashion arts, crafts, and the intersection between the creative economy and disruptive technologies.

However, private sector investment in the creative industries can face certain challenges that must be addressed to facilitate growth and scalability. Risks and barriers, especially in smaller economies, often deter private sector investment. To tackle this issue, the IFC has adopted a strategy of partnering with established providers in the sector. They have made significant investments in India, particularly in local podcast content and movie production. By leveraging these partnerships, the IFC aims to overcome the obstacles associated with private sector investment in the creative industries.

Digitalization and disruptive technologies have the potential to alleviate some of the risks and barriers associated with investing in the creative industries. Recognizing this, the IFC has established a sizable department that specifically focuses on disruptive technologies. The IFC was the first to invest in venture capital and support start-ups in emerging markets, and it is now considering expanding its reach to smaller economies in the future. By embracing digitalization and disruptive technologies, the IFC seeks to enhance investment opportunities and mitigate certain challenges faced by investors in the creative industries.

While the IFC actively engages in public-private partnerships (PPPs) for hard infrastructure projects, such as those related to transportation and energy, it currently has no plans to implement PPPs for the creative industries. The IFC’s focus on PPPs remains on the development of traditional infrastructure.

Affordable and accessible internet access is crucial for fostering the growth of the creative industries. The younger generation, who are well-versed in platforms like TikTok and YouTube, have a strong potential to create content in these industries. However, limited access to affordable internet acts as a barrier. The IFC acknowledges the importance of providing affordable and available internet to unlock the creative potential of the youth and to promote the growth of the creative industries.

In conclusion, the IFC’s recent investments in the creative industries are driven by the opportunities for development impact and financial returns in this sector. While private sector investment faces challenges, the IFC believes that disruptive technologies and digitalization can help overcome these barriers. Despite actively engaging in PPPs for hard infrastructure projects, the IFC currently has no plans to implement PPPs for the creative industries. Lastly, the provision of affordable and accessible internet is fundamental to nurturing the creative industries and enabling the younger generation to participate in content creation.

Keith Nurse

The digital creative economy is not only instrumental but also holds significant future value. It plays a crucial role in shaping identity and cultural confidence. Content creation from the creative industries visually aids in shaping future realities, as seen in the influence of Star Trek on current technologies. Overall, the sentiment towards the digital creative economy is positive.

However, developing countries face challenges in advancing within this sector due to the lack of dynamic trade and industrial policies. Trade policies in these countries are outdated and primarily focused on goods rather than services. There is also limited participation in data monetization by institutions in developing countries. The sentiment towards this issue is negative.

Access to data is essential for fair trade in digital industrialization. Without data access, fair trading in culture becomes impossible in the era of digital industrialization. Although big countries like India and South Korea have successfully implemented data localization, most developing countries are unaware of this tactic. The sentiment towards this argument is neutral.

Copyright arrangements and structures are seen as unfair to artists and content creators, especially those from developing countries and certain genres. The income generated in the digital creative economy is often captured by platforms instead of artists. Furthermore, certain genres and music from small countries often go unnoticed in data collection, resulting in a lack of royalties. The sentiment towards this issue is negative.

The diaspora plays a crucial role in small economies, serving as an extension of the home market and contributing to the success of industries like Nollywood in Nigeria and Jamaican industries. The sentiment towards the diaspora’s impact on small economies is positive.

Linking trade policy with industrial and innovation policies is necessary for development. In the Caribbean, the focus on trade policies without direct links to various sectors and expertise to promote them is considered a negative approach.

Various financing mechanisms are already in operation in developing country regions, as highlighted by the ACP study on Africa, the Caribbean, and the Pacific. The sentiment towards this is positive.

Effective infrastructure is crucial for consistent success in the global market. Without institutional mechanisms, small entrepreneurs face difficulties breaking into the market, resulting in one-hit wonders. Therefore, the creation of startups, growth facilitation, clusters, incubators, accelerators, and market integration programs are necessary to scale up these firms globally. The sentiment towards this argument is positive.

Many policy makers and politicians in developing countries lack an understanding of the value of data capture. Outdated concepts of an economy and ignorance of the importance of data capture hinder progress in utilizing data effectively. The sentiment towards this issue is negative.

The lack of training in new technologies, such as blockchain and AI, in most developing countries creates a skills gap for the rapidly transforming global economy. This gap is expected to have a significant impact in the coming years. The sentiment towards this issue is negative.

Strategic investment in future important industries is essential for the development of developing countries. Singapore’s strategic investment in biotechnology, sending individuals for PhDs annually, has resulted in their biotech export earnings being in the top 10. In contrast, most developing countries lack strategic approaches in investing in education. The sentiment towards strategic investment in important industries is positive.

The main issue hindering progress in the digital creative economy is not the lack of funds but rather the lack of strategy and political will to sustain it. The examination of a country with a scholarship program of 200 scholarships annually, without a clear strategy tied to the country’s future, demonstrates the importance of a coordinated and sustained effort. Previous efforts often go back to zero when there is a change in government in developing countries. The sentiment towards this issue is negative.

In conclusion, the digital creative economy holds significant future value and contributes to identity and cultural confidence. However, many challenges hinder the advancement of developing countries in this sector, such as the lack of dynamic trade and industrial policies, unfair copyright arrangements, limited access to data, and the skills gap in new technologies. The role of the diaspora is crucial in small economies, and trade policies should be linked to industrial and innovation policies. Various financing mechanisms are already in play, and effective infrastructure is necessary for success in the global market. The understanding and utilization of data, as well as strategic investment in important industries, are areas that need improvement. The main issue hindering progress is the lack of strategy and political will.

Eveline Smeets

Disruptive technologies, such as digitalisation, have been instrumental in unlocking the financial potential of the creative industries in emerging markets. This has resulted in increased investment and job creation within these sectors. The International Finance Corporation (IFC) has recognised this trend and has begun investing in creative industries in developing countries, leveraging digitalisation. The IFC’s support aims to provide access to finance and raise awareness for creative industries in emerging markets.

Investment in the creative industries has proven to be highly advantageous, as it stimulates more job creation and generates a higher employment effect compared to other sectors in the economy. Additionally, the creative industries have the ability to address various economic, social, and market-related challenges in emerging markets. These industries are known for their labour-intensive nature, creating both direct and indirect job opportunities. Furthermore, creative products contribute to social cognitive benefits, such as improved innovative capacity, health, and well-being. Moreover, the creative industries play a significant role in industrial innovation and tourism in countries.

However, piracy poses a significant barrier to the formalisation and commercial growth of the creative industries. Evidence from countries like Nigeria and India demonstrates that piracy leads to reduced revenues and reinvestment capabilities for filmmakers, resulting in a decrease in the size and quantity of movies produced. This highlights the need for stricter enforcement of intellectual property rights and anti-piracy measures to protect the creative industries and encourage their growth.

For small island economies, addressing challenges such as internet connectivity and small market size is crucial. It is essential to enhance submarine cables and satellites, export promotion agencies, and various digital, financial, and geographical linkages to overcome these challenges. Moreover, alternative financing mechanisms and fiscal policies are necessary to enhance local production, especially in small island economies. These mechanisms and policies help overcome the challenges posed by small market size and economies of scale.

In conclusion, disruptive technologies have played a vital role in unlocking the financial potential of the creative industries in emerging markets. The creative industries have the ability to address economic, social, and market-related challenges, and investment and support from organisations like the IFC are crucial in harnessing their potential. However, piracy remains a significant barrier to the formalisation and commercial growth of these industries. Furthermore, addressing challenges such as internet connectivity and small market size is essential for the development of small island economies. By implementing alternative financing mechanisms and fiscal policies, these economies can enhance local production and overcome the hurdles they face.

Speakers

Knowledge Graph of Debate

Session report

Audience

The discussion covered several key topics related to technology transition and its impact on climate change, government regulation, digital solutions, and environmental sustainability.

One audience member expressed concern about the slow adoption of technological standards and its potential impact on global warming. They highlighted that it took 15 years to agree on the USB-C standard, underscoring the need for a faster adoption process to effectively address climate change. This negative sentiment emphasizes the urgency of speeding up technological standardization to mitigate global warming.

Another speaker highlighted the effectiveness of government regulation in driving the adoption of tech standards. They gave the example of the European Union’s requirement for Apple to adopt the USB-C standard, illustrating how government intervention can play a crucial role in shaping industry practices. This positive argument suggests that government regulations can facilitate the implementation of technological standards and promote a more consistent and efficient transition to newer technologies.

The discussion also addressed the environmental costs associated with digital solutions. While digital technologies offer numerous benefits, it is important to acknowledge and mitigate their environmental impacts. The speakers emphasized the importance of a “twin transition” approach, which involves a balanced focus on both digitalization and environmental impact. This approach aims to mitigate the negative consequences of digital solutions and ensure sustainable practices. The sentiment here is neutral, recognizing the need for environmental consciousness while leveraging digital technologies.

Lastly, the speakers stressed the significance of minimizing environmental impact in developing countries undergoing digitalization. They acknowledged that developing nations are increasingly embracing digitalization, but environmental considerations should not be overlooked in this process. The audience agreed that measures should be taken to minimize the environmental impact of digitalization in these regions. This neutral standpoint highlights the importance of achieving a balance between technological advancement and sustainable practices.

Overall, the discussion provided valuable insights into the need for swift adoption of technological standards to address climate change, the role of government regulation in driving tech standardization, the environmental costs associated with digital solutions, and the importance of minimizing environmental impact during digitalization in developing countries. The arguments and evidence presented shed light on the complex relationship between technology transition and environmental sustainability.

Richard Niwenshuti

The analysis highlights the crucial role of digital tools in policy making and trade. It emphasizes that relying on the strength and capacities of digital tools is essential for making the right policy decisions. Digital tools provide policymakers with access to vast amounts of data, enabling them to analyze trends, assess impacts, and develop evidence-based strategies. This supports the argument for the usage of digital tools and data for policy decisions, which aligns with SDG 9: Industry, Innovation, and Infrastructure.

In the context of trade, the analysis underscores the importance of speed. It states that in trade, time is cost. The faster the trade process, the more efficient and cost-effective it becomes. Digital tools enable businesses to streamline their operations, automate processes, and reduce time-consuming paperwork. This highlights the significance of speed in trade, which is crucial for achieving SDG 8: Decent Work and Economic Growth.

Furthermore, the analysis also emphasizes the alignment of digital trade with sustainable solutions. It highlights that digital trade minimizes the footprints of production. By digitizing trade processes, companies can reduce their reliance on physical resources, leading to lower carbon emissions and environmental impact. This supports the argument that digital trade can contribute to achieving SDG 13: Climate Action.

The analysis recognizes that different countries are at different levels of digital transition, including within Africa. It cites the example of Rwanda, which has made significant investments in digital infrastructure and serves as a pathway for other African countries. The argument is made that investments in digital transitions should be prioritized in Africa to avail the benefits of wider market opportunities and digital trade. There is a need for digital payments integration and digital skills development for small and medium-sized enterprises (SMEs) in Africa. Additionally, there is a desire to integrate digital tools in production chains to boost productivity, supporting SDG 9: Industry, Innovation, and Infrastructure.

In terms of trade, the analysis emphasizes the need to invest in technologies that optimize production before focusing on trade. It states that low production levels globally have attributed to the growth in food prices. Digitization can help optimize agricultural processes, leading to better pricing and increased food production, contributing to achieving SDG 2: Zero Hunger.

The analysis highlights that digital tools play a key role in trading high-value products in mature markets. It cites Rwanda’s efforts to target high-value markets that require digital precision. Digital tools help maintain the standards and criteria necessary for entering these mature markets, supporting SDG 8: Decent Work and Economic Growth and SDG 9: Industry, Innovation, and Infrastructure.

In terms of policy development, the analysis acknowledges the varying levels of transition and capabilities between countries. It suggests that negotiations on digital trade policy should take into account these differences to ensure that policies are suitable for countries at different stages of digital transition. This underlines the need for more policy instruments and support to facilitate the transition for countries that are lagging behind in digital trade, contributing to SDG 17: Partnerships for the Goals.

The analysis also recognizes the importance of combating e-waste and promoting responsible consumption and production. It highlights the implementation of state-of-the-art e-waste facilities in Rwanda, where electronic materials are renewed, and hazardous materials are safely handled. This showcases the commitment to responsible consumption and production practices, supporting SDG 12: Responsible Consumption and Production.

Regarding climate control, the analysis states that multi-sector interventions are necessary. It mentions Rwanda’s goal of reducing carbon emissions by 38 percent by 2035 and its transition to electronic mobility. This highlights the need for collaboration, partnerships, and complementarity in achieving digital transition and climate resilience solutions, aligning with SDG 13: Climate Action and SDG 17: Partnerships for the Goals.

In terms of trade standards, the analysis acknowledges that trade now relies on meeting certain voluntary metrics. This highlights the growing importance of standards in trade and the need for businesses to meet these metrics to ensure fair and sustainable trade practices, contributing to SDG 17: Partnerships for the Goals and SDG 10: Reduced Inequalities.

Overall, the analysis highlights the significance of digital tools in policy making and trade, the need for investments in digital transitions, particularly in Africa, and the alignment of digital trade with sustainable solutions. It emphasizes the importance of considering different levels of transition and capabilities in digital trade policy negotiations. It also stresses the need for responsible consumption and production practices, multi-sector interventions for climate control, and adherence to trade standards in achieving the Sustainable Development Goals.

Emma Sävenborg

The analysis highlights several key arguments related to trade policy and its impact on sustainability. One of the main arguments is the necessity for trade policy to be based on evidence and correct data. Emma, a senior advisor for digital trade and services at the National Board of Trade, emphasizes the importance of accurate and reliable data in making informed decisions about emissions and trade. Without the right data, it is impossible to fully understand the emissions being released and the potential environmental consequences of trade activities. Therefore, trade policy should rely on accurate data to address sustainability goals effectively.

Another key argument is the role of trade policy in achieving sustainable standards. Trade can encourage innovation and the spread of technical know-how, which are essential for driving sustainable development. By promoting trade, solutions to environmental challenges can be widely disseminated and implemented, leading to more impactful results. Lowering tariffs on environmental goods is also highlighted as a means to make these goods more accessible and encourage their use, promoting sustainability.

Balancing intellectual property (IP) rights and technology transfer is also crucial for achieving green transition. the right balance can facilitate the dissemination of green technologies, allowing for the successful adoption and implementation of sustainable practices. Trade agreements can leverage best practices and discourage environmentally harmful practices by including provisions that encourage sustainability and discourage harmful practices.

The analysis also emphasizes the need to expand digital trade negotiations and include more countries, particularly developing ones. Currently, many African countries have yet to negotiate their digital trade agreements due to limited bureaucratic capacity. Additionally, countries with smaller delegations face challenges in engaging in Joint Statement Initiatives due to demanding processes. By broadening the conversation and creating incentives for more countries to participate, especially developing ones, a more inclusive and comprehensive digital trade framework can be established.

Another important point raised in the analysis is the need to acknowledge and address different levels of readiness, priorities, and perspectives in digital trade. The perception of what digital trade entails depends on a country’s level of digital maturity. It is crucial to recognize that different countries may prioritize different issues in digital trade based on their specific circumstances and needs. By acknowledging and accommodating these differences, a more balanced and effective approach to digital trade can be achieved.

The analysis also underlines the importance of providing support and assistance to countries in participating in digital trade. Currently, only a small percentage of aid for trade funds are allocated to digital, which is deemed insufficient. To ensure that developing countries are not left behind in the digital trade sphere, specific capacity-supporting mechanisms need to be incorporated into all types of negotiations.

Furthermore, the analysis highlights the establishment of a green digital action track, with industry leaders discussing and working on an action plan to map out green standards. This signifies a commitment to implementing agreed-upon green standards within the digital trade sector. However, the analysis does not provide information on how policymakers can accelerate the implementation of these standards, leaving this question unanswered.

Finally, Emma Sävenborg’s perspective is notable in the analysis. She advocates for more inclusion of environmental issues in digital trade discussions and expresses a commitment to introducing more green elements into the sphere of digital trade in the longer term. Her insights highlight the need to consider environmental considerations in all aspects of trade, including digital trade, and work towards a more sustainable future.

In conclusion, the analysis provides a comprehensive overview of the various arguments and perspectives related to trade policy and sustainability. It emphasizes the importance of basing trade policy on evidence and correct data, promoting sustainable standards through trade, and finding a balance between IP rights and technology transfer. The need for inclusive digital trade negotiations and support for developing countries in digital trade are also underscored. The establishment of a green digital action track and Emma Sävenborg’s commitment to environmental considerations in digital trade further contribute to the discussion. Overall, the analysis highlights the potential of trade policy to promote sustainability and the importance of incorporating environmental concerns into trade discussions and decision-making processes.

Robin Michelle Zuercher

The analysis of the given statements highlights several significant points related to the relationship between green and digital transformation, the importance of connectivity, the impact of the ICT industry, the role of standards, and the need for collaboration.

Firstly, there is a consensus among the speakers that green and digital transformation should work hand in hand. Digitalisation is seen as having key opportunities in climate, trade, and the circular economy. This implies that incorporating sustainable digital practices can contribute to achieving environmental goals and promoting economic growth simultaneously.

Connectivity is emphasised as a crucial factor for ensuring inclusivity in the digital age. It is stated that 2.6 billion people do not have access to the internet, and the International Telecommunication Union (ITU) is mandated to work towards achieving universal connectivity. This indicates that providing internet access to all communities, especially the most difficult to connect, is seen as essential for bridging the digital divide and reducing inequalities.

However, it is acknowledged that the growing ICT industry has negative implications. The sector’s greenhouse gas emissions are on the rise, and significant amounts of e-waste are being generated. Estimates suggest that e-waste could reach 110 million metric tons by 2050. The growing amount of e-waste and greenhouse gas emissions indicate that sustainable practices need to be implemented in the ICT industry to mitigate its environmental impact.

To address these challenges, speakers highlight the importance of moving towards a circular economy and adopting sustainable practices. The ITU is actively involved in developing guidelines and capacity building tools for green data centers, assisting developing countries with e-waste regulation, and working on international standards for circular design and digital product passports. These initiatives aim to promote a circular economy and reduce the environmental impact of ICT-related activities.

Collaboration and inclusivity are consistently emphasized as crucial for sustainable digital development. The ITU’s diverse membership is highlighted as an asset in ensuring inclusivity in the standard-setting process. The ITU is also leading a collaborative initiative for green digital action at COP28, demonstrating the commitment to fostering collaboration among stakeholders.

Standards play a crucial role in building transparent and equitable markets, as they provide a level playing field for all participants. Speakers point out that standards are behind common tasks such as making phone calls or listening to music, highlighting their pervasive influence. Regulators and policymakers are encouraged to incorporate standards when forming policies to enable sustainable and circular procurement of ICTs and influence supply chain formation.

The trade perspective is recognized as significant in the green and digital agenda. Speakers emphasize the need for collaboration between the trade community and the standardization process. This suggests that involving various communities, such as trade and environment, can enhance the process of standards development and ensure a holistic approach.

In conclusion, the analysis reveals the importance of integrating green and digital transformation, ensuring connectivity for inclusivity, addressing the negative impact of the ICT industry, promoting sustainable practices and a circular economy, fostering collaboration and inclusivity in the standardization process, and considering the trade perspective. These insights provide valuable considerations for policymakers, regulators, and stakeholders involved in the sustainable development of digital technologies.

Reina Otsuka

In this analysis, the speakers delve into the potential benefits and challenges of digital technology in addressing environmental issues and promoting sustainable development. They highlight the idea that digital technology can allow countries to bypass outdated environmental management and traceability methods and take a giant leap forward. By embracing digital solutions, nations can revolutionize the way they manage their environment and ensure greater resilience in the face of challenges.

The speakers also emphasize that digital transformation has the power to revolutionise the socioeconomic system. With digitalisation, operations can become ten times faster, more efficient, and scalable. This can have a profound impact on economic growth and create opportunities for innovation and development. The potential for digital technology to drive socioeconomic progress is vast and can lead to significant advancements in various sectors.

Another key point highlighted in the analysis is the role of digital technology in climate change mitigation and adaptation strategies. For instance, smart agriculture and energy efficiency are examples of digital applications that can contribute to mitigating climate change. Real-time data obtained through digital technology is essential for early warning systems and risk-informed planning in adaptation strategies. By leveraging digital solutions, countries can enhance their efforts to combat climate change and build resilience in the face of its impacts.

However, the speakers caution that the green transition should not leave behind those who are most affected by climate change. While digital technologies bring numerous benefits, it is important to ensure inclusivity and consider the needs of marginalised communities. Many people, especially those in developing countries, still lack access to the internet, which hampers their ability to benefit from digital advancements. Therefore, the green transition should be integrated with the digital transition to ensure that all sectors of society can reap the benefits and address environmental challenges effectively.

Access to finance for green initiatives is another area where digital technology can play a significant role. Digital solutions can facilitate data-based trust in carbon markets and support payment for ecosystem service (PES) schemes. These schemes compensate custodians of ecosystems for their efforts in preserving the environment. By leveraging digital technology, countries can improve financial mechanisms and support the transition towards a greener economy.

The analysis also emphasises the importance of open data and data sharing policies to eliminate duplication of efforts. It highlights the need for a digital infrastructure that promotes innovative solutions and collaboration. By sharing data openly, companies and organisations can avoid unnecessary duplication of data collection efforts, improving efficiency and fostering innovation.

Additionally, the speakers stress the need to build digital technology as an ecosystem that involves various stakeholders such as governments, the private sector, academic partners, local communities, and even citizen science. For digital technology to be adopted successfully and sustainably, it needs to be a collaborative effort. They provide examples of successful engagements, such as the partnership between the Rwanda ICT Chamber of Commerce and a village community to develop business models for supporting a cold chain. This case study illustrates the concept of a digital ecosystem in practice and highlights the benefits of involving multiple stakeholders in the adoption of digital technology.

The analysis also touches upon several environmental issues associated with the digital transition. For instance, e-waste management and the environmental impact of server centres are significant concerns. The speakers suggest that these issues should be addressed to ensure a sustainable digital transition. Furthermore, the extraction of minerals for digital technology is deemed a hidden but significant issue that must be reckoned with in the pursuit of sustainable development.

When discussing national digital strategies, the speakers stress the importance of considering both environmental and social aspects. Safeguards related to these issues should be implemented from the inception of a digital strategy to ensure that it aligns with sustainable development principles. They cite the ongoing digital readiness assessment in Tanzania as an example of the need to consider environmental and social factors in digital strategies.

Lastly, the speakers acknowledge that addressing environmental and digital issues requires partnerships and a holistic approach. They advocate for various ministries, such as trade, environment, and digital, to work together and collaborate on solutions. The Coalition for Digital Environmental Sustainability is highlighted as a platform that aims to foster such partnerships and encourage diverse discussions on these critical topics.

In conclusion, the speakers in this analysis shed light on the potential benefits and challenges of digital technology in addressing environmental issues and promoting sustainable development. They highlight the need to integrate digital and green transitions, ensure inclusivity, manage e-waste and server centre emissions, address mineral extraction concerns, and consider social and environmental safeguards in national digital strategies. Partnerships and a holistic approach are seen as crucial for managing the complex intersection between digital and environmental sustainability. By embracing these ideas, countries can leverage digital technology to create a more sustainable and resilient future.

Moderator

The discussion centred around the significance of sustainable digital transformation and universal connectivity in achieving the United Nations’ Sustainable Development Goals (SDGs). The International Telecommunication Union (ITU) played a central role, emphasising its mandate to connect the world. Member states have prioritised sustainable digital transformation alongside universal connectivity, recognising the need to address the environmental impact of digitalisation.

Collaboration emerged as a key theme, with participants stressing the importance of integrating digital and green transitions. The trade angle, circular economy, and dematerialisation were highlighted as key opportunities. The role of digital tools and data in policy making was emphasised, particularly the need for evidence-based decision making and the use of data by policy makers.

Trade was identified as essential for promoting innovation, disseminating technical knowledge, and advancing sustainability. However, challenges such as the digital divide and slow adoption of digital solutions by small and medium-sized enterprises (SMEs) were acknowledged. Efforts to regulate e-waste, promote circular economy practices, and establish green standards were discussed.

The participants underscored the need for partnerships and a holistic approach to address challenges and maximise the benefits of the digital and green agenda. They called for unified global dialogue and inclusive digital trade policies. The importance of interconnectedness in policy making, both domestically and internationally, was emphasised. Furthermore, concern was raised about the potential widening of the gap between countries due to the rapid pace of digital transformation.

Noteworthy initiatives, such as Rwanda’s investment in digital infrastructure and e-waste management, as well as China’s digitisation of its e-waste system, were highlighted as examples of integration of digital technology and potential for sustainable practices.

The significance of standards, particularly in promoting green practices and ensuring a level playing field in trade, was emphasised. Attention was drawn to the slow adoption of voluntary standards by the industry, suggesting the need for regulatory intervention to drive their implementation. The involvement of the trade community in the standardisation process was deemed beneficial.

Overall, the expanded summary emphasises the importance of sustainable digital transformation, universal connectivity, and the use of digital tools and data in achieving the SDGs. Collaboration, partnerships, and a comprehensive approach are seen as crucial to address challenges and maximise the positive impacts of the digital and green agenda.

Speakers

Knowledge Graph of Debate

Session report

Audience

During the presentation, various topics were discussed, including digital trade, data collection, and statistics. One audience member questioned the value of gathering information on digitally ordered goods and services. Despite this doubt, it was highlighted that there is a growing interest in having better data on actual services trade, digital trade, and the flow of money involved in paying for a service or a good.

The joint efforts of prominent international organisations were also recognised as contributing to the establishment of the report. A team of four people who handled the complex tasks in a collegial manner worked on the report, which received positive sentiment.

The importance of capacity building to support National Statistical Agencies in monitoring progress towards the Sustainable Development Goals (SDGs) was emphasised. It was noted that a major push is being made to improve the abilities of national statistical agencies to monitor progress towards the SDGs. This alignment with collecting data about the digital economy is crucial.

Investigating two World Customs Organization categories, namely low-value dutiable and low-value non-dutiable, could provide valuable insights into business-to-consumer (B2C) trade. These categories are significant as most B2C operations fall within them.

Concerns were raised regarding the accuracy of transactional data for digitally ordered goods. The tension between CIF (Cost, Insurance, and Freight) and FOB (Free on Board) values makes it difficult to capture the exact trade values. It was observed that the backend transactions are not fully capturing the CIF values.

Queries were raised about the inclusion of digital payments in reported statistics, specifically whether digital payments are counted as ‘trade in service’ or fall into a different category. However, no specific evidence or argument was provided in relation to this query.

Additionally, some attendees sought clarification on the use of definitions for the publication. Mario Postolov, the Regional Advisor in the Trade Division of UNECE, is responsible for publishing and continuously updating a glossary on trade facilitation terms. This glossary is part of the effort to provide clarity in the publication.

Furthermore, the inclusion of postal data in future reports was discussed. Hossam Garbi, responsible for the Trade Program in the Universal Postal Union (UPU), highlighted that the majority of international shipments transit through the postal network. The UPU expressed a positive interest in cooperating for the inclusion of postal data in future reports, demonstrating their global vision on all e-commerce transactions and their efficiency.

In conclusion, the presentation covered various topics related to digital trade, data collection, and statistics. While some doubts and concerns were raised, there was also recognition of the joint efforts of international organisations and the importance of capacity building for National Statistical Agencies. The inclusion of postal data in future reports and the need for better data on digitally ordered goods and services were discussed.

Dan

The analysis explores the significance of digitally ordered trade and the methods used to measure it. Digitally ordered trade refers to the international sale or purchase of goods or services carried out over computer networks. It closely aligns with the definition of e-commerce established by the OECD in the early 2000s. One notable point emphasized in the analysis is that digitally ordered trade encompasses both goods and services and is applicable to all sectors of the economy.

To measure digitally ordered trade, the analysis recommends using business ICT surveys and merchandise trade customs reporting procedures. Business ICT surveys are valuable tools for assessing the uptake of e-commerce in businesses and can provide insights into the value of digitally ordered transactions. Notably, some countries, including China, have modified their merchandise trade customs reporting procedures to identify shipments that are digitally ordered.

In addition to these methods, the analysis highlights the importance of other sources for gaining a comprehensive understanding of digitally ordered trade. This includes household surveys, which can examine areas such as ICT usage and expenditure, providing valuable data on consumer behavior. VAT returns data and card payments data are also mentioned as additional sources that can provide insights into digitally ordered trade. Moreover, multinational enterprise surveys are highlighted as particularly useful for understanding digital trade due to the significant role of multinational enterprises in the trading system.

The analysis discusses the role of digital intermediation platforms (DIPs) in the digital trade ecosystem. DIPs are online interfaces that facilitate direct interaction between buyers and sellers, without the platform taking economic ownership of the goods or services being sold. They offer advantages such as access to a wider global market, particularly beneficial for smaller businesses. The analysis points out that transactions on DIPs have significantly increased during the pandemic. DIPs are seen as key drivers in the digital transformation of trade due to their ability to enable new business models, such as resource sharing, and to facilitate sales through online platforms.

An important insight provided in the analysis is the distinction between real-life transactions and economic transactions involving DIPs. In real life, a buyer pays the DIP, which deducts its fees and pays the remainder to the seller. However, for accurate trade statistics, it is recommended to separate these two transactions: the payment for the actual good or service and the payment for the intermediation service. To achieve this, enterprise surveys, ICT usage surveys, and potentially card payment data can be utilized to collect the necessary information.

The analysis also highlights the potential of DIPs in the digital trade landscape and their role in increasing the share of least developed countries (LDCs) in global trade. It notes that digital ordering and delivery can enable practitioners in remote areas to supply services to businesses and homes worldwide, thus benefiting LDCs. However, the analysis also mentions that the target of doubling the share of LDCs in global trade by 2020, as part of the Sustainable Development Goals (SDGs), was not met. Implementing the handbook’s framework is seen as crucial for achieving a clearer digital trade landscape.

Measurement of digital trade in LDCs is deemed essential to monitor its contribution to achieving the revised SDGs target. The analysis suggests including customs data and estimations for non-dutyable trade to obtain a comprehensive picture when measuring digital trade. It also proposes using postal data to estimate the volume of low-value, digitally ordered goods trade, as there is a correlation between the volume of postal packages crossing borders and digital trade.

In conclusion, the analysis underscores the significance of digitally ordered trade and the need for accurate measurement methods. It suggests that a more comprehensive understanding can be achieved through surveys, customs reporting procedures, and the utilization of various data sources. Additionally, the analysis highlights the role of DIPs in the digital transformation of trade, particularly in facilitating access to a wider market. Furthermore, it emphasizes the importance of separating real-life and economic transactions involving DIPs for more accurate trade statistics. Finally, it addresses the potential of digital trade for LDCs and the importance of measuring its impact to achieve the SDGs target.

Overall, the analysis provides valuable insights into the definition, measurement, and impact of digitally ordered trade, as well as the role of digital intermediation platforms and the need for comprehensive measurement methods in the digital trade landscape. It underscores the potential of digital trade in driving economic growth and its implications for achieving sustainable development goals.

Antonella

Efforts to measure digital trade have been ongoing since the late 1990s. The World Trade Organization (WTO) launched a work programme on e-commerce in 1998 to address the growing prominence of digital trade. Additionally, the Organisation for Economic Co-operation and Development (OECD) developed a definition for e-commerce in the early 2000s. These initiatives reflect the recognition of the need to understand and quantify the impact of digital trade on the global economy.

However, despite these efforts, there is still a lack of official statistics on digital trade. Unlike merchandise trade and services trade, there are no comprehensive and standardised measurements for digital trade. This poses a challenge for policymakers as they require accurate and reliable data to formulate effective policies in all economies and at all levels of development.

One of the key arguments is the need for a clear distinction between the concepts of e-commerce and digital trade. E-commerce refers to the ordering of goods and services, both domestically and internationally. On the other hand, digital trade includes not only the ordering but also the delivery of goods and services, specifically at an international level. It is important to understand this distinction to accurately measure and monitor digital trade.

Monitoring and measurement of digital trade is crucial as it allows for the identification of barriers and problems that may hinder its growth and development. By monitoring its evolution, policymakers can take appropriate actions to address any issues that arise. Additionally, measuring digital trade can help countries access new markets, increase opportunities for businesses, and contribute to overall economic growth.

The broad conceptual framework for digital trade is fairly stable and established. However, there is still ongoing work in interpreting and measuring certain aspects, especially in relation to platforms and other emerging areas. The framework is designed to be future-proof, capable of accommodating changes in the production boundaries and incorporating new macroeconomic standards that will be introduced in the coming years.

Valuation of digitally ordered goods can be challenging due to the use of different pricing methods. Conventional accounting rules are often applied, such as SIF (supplied, installed, and fully paid for) or FOB (free on board) pricing. Translating invoice values into these valuation methods can be complex and require careful consideration.

It is important to note that while financial flows associated with trade, such as payments, are typically present, they are not counted as part of digital trade. The focus is primarily on the ordering and delivery of goods and services themselves. This distinction clarifies the scope of digital trade and provides a more accurate picture of its impact on the economy.

In conclusion, while efforts to measure digital trade have been ongoing, there is still a need for official statistics similar to those available for merchandise trade and services trade. The defined framework for digital trade is firmly in place, but further work is required to collect official statistics, monitor its evolution, and address challenges related to valuation. It is crucial to continue measuring and monitoring digital trade to foster its growth and reap the benefits it offers in terms of access to new markets and economic development.

Barbara

The analysis highlights several key points regarding digitally delivered trade and the challenges of measuring it. Digitally delivered trade is defined as all international trade transactions that are delivered remotely over computer networks. It primarily involves the delivery of services, but there are certain services, such as accommodation and passenger transport services, which require physical presence and cannot be digitally delivered.

One important finding is that digitally deliverable services, which include services delivered remotely through various means such as phone, fax, video calls, emails, apps, and digital intermediation platforms, have a higher value than the services that are actually digitally delivered. In fact, it has been estimated that digital deliverable services were valued at $3.82 trillion in 2022, and they have been growing more rapidly than goods exports and other services that are not digitally delivered. This highlights the significant economic impact and potential of digitally deliverable services.

Efforts are being made to capture and measure the remote delivery of services through surveys and administrative sources. For example, the development of International Trading Services Surveys, as successfully implemented by the USA and Costa Rica, aims to capture exports of digitally delivered services. Additionally, the use of administrative sources, such as VAT data and public expenditure sources, has been advocated to estimate digital service inputs. Argentina has leveraged VAT tax legislation on non-resident providers of digital services, while Ireland has combined multiple publicly available sources to estimate household expenditure on digital services.

However, the measurement of digital trade presents complex challenges, especially for developing economies. Measuring digital trade requires multiple sources and methods, and implementing the recommendations outlined in the handbook can be challenging. To address this, a coordinated statistical building program has been introduced by four institutions to aid developing countries in improving their statistical capacity.

The analysis also emphasizes the importance of tracking digital trade and ordering, as well as the necessity of comprehensive reporting of statistics in this area. Policymakers play a crucial role in the production of statistics for trade, as they can allocate funds for statistical development and ensure that stakeholder consultations are conducted prior to implementing statistical strategies.

Furthermore, the integration of least developed countries into the global trading system is prioritized, and efforts are being made to develop data that allows monitoring opportunities for growth in these countries. A coordinated statistical program has been launched to build up the statistical capacity of least developed countries.

It is noteworthy that digital trade is not solely a business of developed economies, as some developing economies are already fully engaged in digital trade. Particularly, tourism-driven small economies have a significant number of orders made digitally. However, capacity building is required in small economies to accurately measure the scale and value of digital trade, as sometimes they may not be fully aware of the extent of their digital trading activities.

In conclusion, the analysis brings attention to the concept of digitally delivered trade and highlights both the potential and challenges associated with measuring it. The growth and economic impact of digitally deliverable services are significant, and efforts are being made to capture and measure the remote delivery of services. The measurement of digital trade presents complex challenges, particularly for developing economies, but a coordinated statistical-building program aims to address these challenges. The role of policymakers and the development of national strategies are crucial in producing trade statistics and informing policy decisions. It is important to prioritize the integration of least developed countries into the global trading system and provide capacity-building support in small economies to accurately measure and benefit from digital trade.

Moderator

The discussion highlighted several key points regarding digital trade and its measurement. Firstly, it was noted that there is a lack of official statistics on digital trade, which poses challenges for policymakers in making informed decisions. Without reliable and comprehensive statistics, policymakers have to rely on anecdotal information, hindering effective policymaking for all economies and at all levels of development.

The emergence of new business models, such as online platforms, was also discussed. These platforms are becoming important players in economies, but their role, functioning, and contributions are subjects of intense debate. The debate around these new business models highlights the need for a better understanding of their impact on the economy.

The role of the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), and United Nations Conference on Trade and Development (UNCTAD) Durito Handbook in improving the measurement and understanding of digital trade was acknowledged. The handbook, which resulted from the cooperation between these institutions, provides clarification on definitions, compilation guidance for statisticians, and country examples. Its endorsement by countries globally after extensive consultation is a testament to its importance in improving digital trade statistics.

Furthermore, it was highlighted that digitalisation is transforming how goods and services are produced, purchased, and delivered. This digital transformation of the economy and services is reshaping the way businesses operate and creating new opportunities.

Measuring digital trade was recognised as a complex task, requiring multiple sources and methods. Statisticians need to measure not only digitally ordered goods and services but also digitally deliverable services. Customs reporting requirements and trading services surveys need to be modified to include questions specific to digital trade. These modifications are crucial to capture the full extent of digital trade.

Implementing the recommendations of the handbook poses challenges, particularly for developing economies. Considering the complexities in measuring digital trade, the implementation of the handbook’s recommendations may be more difficult for these economies. To address this, a coordinated statistical building programme is introduced by the four institutions to assist developing countries in adopting the recommendations and improving their statistical capacities.

The presentation provided extensive information on digital trade statistics and its complexities, shedding light on the importance of collecting data and understanding the landscape of digital trade. It was emphasised that data on digitally deliverable services and digitally ordered trade are significant indicators of the opportunities and challenges in the digital trade arena.

The moderator emphasised the importance of understanding the future of digital trade for economic growth. With digitalisation continuously shaping the global economy, it is crucial to stay abreast of the latest trends and developments.

It was also noted that policymakers play a pivotal role in the production of statistics and have the power to allocate funds for the development of new statistics. Policymakers should consult with relevant stakeholders, including ministries, National Statistics Offices, and central banks, in the development of national strategies for statistics. Considering the specific trade interests and growth opportunities of each country, these strategies should reflect a holistic approach.

Finally, Barbara’s contributions were acknowledged as a major achievement in improving knowledge on digital trade. Her input was commended, underscoring the importance of collaborative efforts in advancing research and understanding in this field.

Overall, the discussion highlighted the need for reliable statistics on digital trade, the emergence of new business models, the role of the Durito Handbook, the digital transformation of the economy, the complexities in measuring digital trade, the challenges in implementing the handbook’s recommendations, and the importance of understanding the future of digital trade. Policymakers are encouraged to consult with relevant stakeholders and allocate funds for the development of new statistics to drive informed decision-making.

Speakers