EU’s Global Gateway – Is it a new paradigm of global digital economic relationships? (Brot fur die Welt)

Arguments

China is investing in digital infrastructure in Africa via the digital Silk Road

Supporting facts:

• China has committed to undertake ten digital economy projects for Africa

• Huawei has 30 percent of Africa’s 3G network and close to 70 percent of the 4G network

• China has built close to 266 technology projects in Africa

Topics: China-Africa relations, Digital Silk Road, Digital Infrastructure

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US-based companies are extracting data in Africa

Supporting facts:

• Companies like Google, Microsoft, Amazon, and Facebook have opened African headquarters in South Africa, Kenya, Ghana and others

• Amazon Web Services and Google are established in Africa for extracting data despite Africa’s desire for independent data centres

Topics: US-Africa relations, Data Extraction, Digital Economy

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Africa’s sovereignty in the digital economic dispensation can only be achieved if they actively participate in the digital economy and gain value from the data

Topics: Africa, Digital Economy, Sovereignty, Data Value

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Report

China is investing in digital infrastructure projects across Africa through the Digital Silk Road initiative. Huawei, a Chinese telecom company, holds a significant presence in Africa’s network infrastructure, having built around 30% of the continent’s 3G network and close to 70% of its 4G network.

China has completed approximately 266 technology projects throughout Africa, aiming to enhance digital connectivity and foster economic growth. However, concerns arise about Africa’s increasing debt to China resulting from these investments. For instance, Ethiopia currently owes China $3 billion for its digital infrastructure upgrades.

The International Monetary Fund’s 2021 report highlights that five out of the top ten highly indebted poor countries to China are from Africa. This raises concerns about long-term financial stability and the ability to repay these debts. On the other hand, US-based companies like Google, Microsoft, Amazon, and Facebook are extracting data in Africa, disregarding the continent’s desire for independent data centres.

This raises concerns about data sovereignty and the exploitation of Africa’s data resources by external entities. African governments are advised to carefully evaluate the terms and conditions of digital investments and be cautious of hidden intentions. Nevertheless, Africa must actively participate in the digital economy and derive value from its data to achieve sovereignty in the digital era.

It is crucial for the continent to define its independent approach to transitioning into the digital economy and safeguarding its interests and data. Africa Kiiza supports investment in African data centres as a means for Africa to assert control and shape its own path in the digital economy.

In summary, China’s investments in digital infrastructure in Africa present opportunities for connectivity and economic growth. However, concerns about increasing debt and the extraction of data by US-based companies highlight the need for caution and careful evaluation of digital partnerships’ terms and conditions.

African governments should actively participate in the digital economy, prioritising data sovereignty to ensure they benefit from the digital revolution on their own terms.

Arguments

China is exercising significant influence in global technology through the Belt and Road Initiative and the Digital Silk Road.

Supporting facts:

• China’s involvement in laying fiber optic cable in the Pacific, Indian and Atlantic oceans.

• Their market share in undersea cables is more than 23%

• Huawei controls more than 70% of the digital infrastructure in Africa

Topics: China, Belt and Road Initiative, Digital Silk Road

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China is exporting surveillance equipment like face recognition technology and biometrics video technology.

Supporting facts:

• China is a significant provider of surveillance hardware and software at a global level

Topics: China, Surveillance technology

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China is pushing for multilateral discourses in internet governance instead of multi-stakeholder discourses

Supporting facts:

• China has been hosting an annual world internet conference since 2014 known as the Wushan Summit

• China launched the Global Data Security Initiative in 2020

Topics: Internet Governance, Data Security

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China’s cybersecurity law dictates that data be stored in Chinese territory and provided to the state on demand

Supporting facts:

• The cybersecurity law enacted by the People’s Republic of China in 2016 mandates that data be kept within Chinese territory and surrendered to the state when required

Topics: Cybersecurity, Data Privacy

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Chinese loans are creating dependencies

Supporting facts:

• China often couples credits for infrastructure projects with contracts that require the employment of Chinese workers and the purchase of Chinese components and raw materials

• Sri Lanka had to lease their Hambantota harbour to China for 99 years after failing to service loans from the country

Topics: Global Debt, Investment

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European Union is attempting to advance its own vision for the digital economy

Supporting facts:

• In December 2021, the Global Gateway Initiative was launched by the European Union to enhance its role in global digital transformation

• The EU aims for a human-centric approach emphasizing individual rights, democratic values, and user data protection

Topics: Digital Economy, Digital Policies

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Connectivity is important for global South countries; they need inexpensive, high quality technologies to expand their networks

Topics: global South, connectivity, high quality technologies, network expansion

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Digital technology is not a solution in itself

Supporting facts:

• technology often directed at countries with a techno-solutionist approach

• poverty alleviation programs do not come automatically by technology transfer

Topics: digital technology, poverty alleviation, technology transfer

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Artificial Intelligence can exacerbate existing inequalities and biases in society

Topics: artificial intelligence, inequalities, biases

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Need for fostering digital literacy, respecting human rights, and combating digital monopolies

Topics: digital literacy, human rights, digital monopolies

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Concern about the spread of false information and the future of democracy

Supporting facts:

• there will be more than 50 countries having elections next year

• problems with content moderation

Topics: false information, democracy, elections

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Report

China is exerting significant influence in global technology through initiatives like the Belt and Road Initiative and the Digital Silk Road. They have a large market share in undersea cables, with more than 23% of the market share, and they have been involved in laying fiber optic cables in the Pacific, Indian, and Atlantic oceans.

Additionally, China controls a significant proportion of digital infrastructure in Africa, with Huawei alone controlling more than 70% of the digital infrastructure on the continent. However, concerns have been raised about the widespread adoption of Chinese technology standards. While Chinese technology is relatively inexpensive, making it attractive to developing countries, there is a fear that this could lead to lock-in effects, restricting alternatives and creating a dependency on Chinese technology.

China is also exporting surveillance equipment, such as face recognition technology and biometric video technology. This raises concerns about privacy and human rights, especially considering China’s significant provider status in global surveillance hardware and software. In terms of internet governance, China is pushing for multilateral discourses instead of multi-stakeholder discourses.

They have been hosting the World Internet Conference since 2014 and launched the Global Data Security Initiative in 2020. China’s cybersecurity law, enacted in 2016, has raised concerns as it mandates that data be stored within Chinese territory and surrendered to the state on demand.

This raises questions about data privacy and security, as well as potential government access to sensitive information. A notable example of China’s influence through loans is seen in Sri Lanka, where they have coupled credits for infrastructure projects with contracts requiring the employment of Chinese workers and the purchase of Chinese components and raw materials.

When Sri Lanka failed to service the loans, they had to lease their Hambantota harbour to China for 99 years. This highlights the potential risks and dependencies created by Chinese loans. In contrast to China’s approach, the European Union is aiming to chart a different path when it comes to data control.

They are pursuing a model where data is controlled by individuals based on values and fundamental rights. The EU is also seeking to expand its influence through regulatory leadership and digital partnerships. In December 2021, they launched the Global Gateway Initiative to enhance their role in global digital transformation, with an emphasis on a human-centric approach and the protection of individual rights and user data.

While connectivity is important for countries in the Global South, it is essential to recognize that digital technology is not seen as a solution in itself. The deployment of technology needs to be accompanied by other measures to ensure its effectiveness in addressing development challenges.

Artificial Intelligence (AI) is another area of concern, as it has the potential to exacerbate existing inequalities and biases in society. Issues such as algorithmic biases and discriminatory practices need to be addressed to ensure the responsible and ethical use of AI.

Digital literacy, respect for human rights, and combating digital monopolies are also important considerations in the digital landscape. These factors can contribute to a more equitable and inclusive digital environment. Furthermore, there are concerns about the spread of false information and its impact on democracy, especially with more than 50 countries having elections next year.

Content moderation and the need for accurate information are crucial in maintaining the integrity of democratic processes. In summary, China’s influence in global technology through initiatives like the Belt and Road Initiative and the Digital Silk Road is substantial. However, concerns exist regarding the adoption of Chinese technology standards, surveillance exports, internet governance, cybersecurity laws, and the potential drawbacks of Chinese loans.

On the other hand, the European Union aims to pursue a different path with a focus on data control based on values and fundamental rights. Connectivity, AI ethics, digital literacy, human rights, and combatting digital monopolies are important considerations in the digital landscape.

The spread of false information and its impact on democracy is also a significant concern.

Arguments

The Global Gateway initiative, specifically its digital elements, is largely aspirational

Supporting facts:

• The EU is seeking to combine development funding with private sector investment.

• Currently, there is insufficient tangible activity to assess the success of the scheme.

Topics: Global Gateway, Digital Infrastructure

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Current definitions of ‘connectivity’ are too narrow

Supporting facts:

• Connectivity is described in a connected to global gateway document as what networks and flow of people, goods, services, and capital.

• This broad definition includes regulatory and technical standards.

Topics: Global Gateway, Connectivity

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There’s skepticism about the EU’s ability to develop and export its digital sovereignty model

Supporting facts:

• EU’s ambition to develop and operate a digital sovereignty model raises doubts regarding its practical implementation.

• Concerns are there about EU’s readiness to export it for economic gain.

Topics: Digital Sovereignty, EU

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Africa should take a serious approach towards a digital public infrastructure-based model

Supporting facts:

• The digital economy model that the US and China followed is not open to Africa

• Small companies should focus on creating local impact rather than chasing billions

Topics: Digital Economy, Infrastructure, Economic Models

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Report

The Global Gateway initiative, particularly its digital components, is largely viewed as aspirational. The European Union (EU) aims to merge development funding with private sector investment to achieve its objectives. However, there is currently insufficient tangible activity to evaluate the scheme’s success.

One of the primary concerns raised is the narrow definition of ‘connectivity’. It is argued that the current understanding of connectivity is too limited, focusing solely on networks and the flow of people, goods, services, and capital. This narrow perspective excludes crucial elements such as regulatory and technical standards.

To drive progress, it is suggested that broader definitions of connectivity should be embraced. There is also doubt surrounding the EU’s ambition to develop and export its digital sovereignty model. Questions have been raised regarding the practical implementation of this model and concerns exist about the EU’s readiness to promote it for economic gain.

This skepticism suggests that the EU may face challenges in effectively developing and promoting its digital sovereignty concept. Alternatively, some advocates propose an alternative approach for the digital landscape, suggesting the need for a third digital superpower alongside the United States and China.

The focus of this third superpower would be on creating an open, decentralized digital economy. This approach suggests that a more balanced and diverse digital landscape could be beneficial for international development and innovation. In the context of Africa, it is suggested that the continent adopts a digital public infrastructure-based model for its digital economy.

It is argued that the digital economy model pursued by the United States and China is not open to Africa, and instead, small companies should focus on creating local impact rather than pursuing large-scale profits. This approach aims to address inequalities and promote sustainable development.

Furthermore, it is emphasized that ministries should conduct internal assessments and make decisions regarding the digital economy model. This highlights the importance of proactive decision-making and coordination across different government departments to ensure successful development and implementation of digital policies.

Overall, the analysis presents various perspectives on the Global Gateway initiative, digital connectivity, the EU’s digital sovereignty model, and the future of the digital economy. It underscores the need for inclusive, comprehensive approaches that prioritize equitable development and cooperation.

Arguments

EU global gateway’s digital and data element is the most important part of the strategy

Supporting facts:

• The EU global gateway is a very broad approach to digital energy, transportation, health, education, research systems. However, the digital and data elements are where a lot of the action is due to their integration functions across all of those other systems.

Topics: EU global gateway, Digital Infrastructure, Data Infrastructure

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The strategy is driven by corporate interest and ideological belief

Supporting facts:

• There is a corporate interest and an ideological part to the global gateway initiative. It’s not just enabling firms to do business abroad, but also about strengthening democracy and freedom.

Topics: EU global gateway, Corporate interest, Ideological belief

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The financial sustainability of both the EU’s Global Gateway and China’s Belt and Road initiatives are questionable

Supporting facts:

• The EU’s document says mobilizing about $60 billion a year over five or six years, which corresponds with the Belt and Road initiative. However, the realness of these numbers is doubtful. There’s also a question of whether the Chinese investment in Belt and Road kind of initiatives is sustainable with latest numbers showing the Chinese debt model overall not looking very sustainable.

Topics: EU Global Gateway, China, Belt and Road Initiative, Economic sustainability

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China is potentially creating a debt trap for itself due to its inflexibility on debt forgiveness

Supporting facts:

• Traditionally, there has to be a large component of debt forgiveness in large development projects. China is setting itself up for a problem, in view of its dislike for debt forgiveness.

Topics: China, Debt trap, Belt and Road Initiative, Debt forgiveness

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Africa will be the demographic superpower of the next couple of decades

Supporting facts:

• Africa’s demographic growth

Topics: Africa, Demographics

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Africa needs to have an economic engine as part of growth

Topics: Africa, Economic Growth

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Digital connectivity will be the most important thing for Africa’s growth

Topics: Africa, Digital Connectivity

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Africa could do well in generative AI with right infrastructure and setup

Topics: Africa, Generative AI, Infrastructure

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Report

The EU global gateway initiative primarily focuses on the digital and data elements, which are considered crucial for its success. These elements play a significant role in integrating various systems such as energy, transportation, health, education, and research. The strategy recognizes that the integration of digital and data functions across these systems is where most of the action lies.

However, concerns arise regarding the financial sustainability of both the EU’s Global Gateway and China’s Belt and Road initiatives. The EU’s document states that around $60 billion per year for five or six years will be mobilized, aligning with the Belt and Road initiative.

However, doubts arise regarding the feasibility of these numbers. Furthermore, the Chinese debt model as a whole is deemed unsustainable, raising questions about the long-term viability of Chinese investments in initiatives like the Belt and Road. There is also concern about the potential shift in technology that could impact the feasibility of current investments in digital infrastructure.

While traditional infrastructure like fiber optic cables is currently in use, there might be a transition to newer technologies, such as low Earth orbit satellites, which could prove to be cheaper and more sustainable in the future. The inertia within the system is not keeping pace with the latest technologies, creating a potential risk for current investments.

Africa’s demographic growth presents both opportunities and challenges. It is anticipated that Africa will become the demographic superpower in the next few decades. This demographic potential can be leveraged for economic growth, but it also calls for the need to have a strong economic engine to support this growth.

In addition, digital connectivity is seen as a vital factor for Africa’s growth. The availability and accessibility of digital connectivity will be crucial for Africa to make significant progress. Furthermore, with the right infrastructure and setup, Africa has the potential to excel in generative AI, which could contribute significantly to its development.

However, there is concern about the possibility of Africa getting marginalized and cut off in colonial-style digital relationships. It is important to ensure that Africa is not left behind or excluded in the digital world, as it could result in increased inequalities.

In summary, the EU global gateway initiative focuses on the digital and data elements, considering them as key components of its strategy. However, concerns remain regarding the financial sustainability of both the EU’s Global Gateway and China’s Belt and Road initiatives.

Additionally, the potential shift in technology and the need for Africa to leverage its demographic growth and invest in digital connectivity and generative AI infrastructure are emphasized. It is crucial to pay attention to the risks of marginalization and ensure equitable participation in the digital realm.

Arguments

Sven Hilbig introduces the Global Gateway initiative being a worldwide strategy by the European Union to promote its own digital sovereignty.

Supporting facts:

• Global Gateway is an initiative by the European Union.

• It aims to invest in infrastructure projects and establish economic partnerships.

• It aims to invest up to 300 billion euros until 2027 in emerging economies and developing countries.

Topics: Global Gateway, Digital sovereignty, European Union

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Sven Hilbig points out the Global Gateway as an alternative to the Chinese Belt and Road Initiative and the Chinese Digital Silk Road.

Supporting facts:

• The global competition for digital leadership is between the US, China and the European Union.

• The European Union’s Global Gateway is seen as an alternative to the Chinese Belt and Road Initiative and the Chinese Digital Silk Road.

Topics: Chinese Belt and Road Initiative, Chinese Digital Silk Road, Global Gateway

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Sven Hilbig discusses the importance of understanding the impacts of current infrastructure projects in the Global South in order to inform discussions on the Global Gateway.

Supporting facts:

• A panel discussion is being held to discuss potential benefits of the Global Gateway, possibly bringing a more equal partnership approach and outreach to the Global South.

• The discussion includes experts in infrastructure projects and digital policy.

Topics: Global South, Chinese Belt and Road Initiative, Global Gateway

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Report

The Global Gateway initiative, introduced by the European Union, is a comprehensive global strategy aimed at promoting digital sovereignty. This initiative seeks to invest a substantial sum of up to 300 billion euros by 2027 in infrastructure projects and economic partnerships in emerging economies and developing countries.

By doing so, the European Union hopes to strengthen its own digital influence and reduce reliance on other countries. Sven Hilbig highlights the Global Gateway initiative as a significant step towards advancing the European Union’s digital sovereignty. This strategy enables the European Union to assert itself as a major player in the global digital landscape, effectively competing with the United States and China.

By investing in infrastructure projects and establishing economic partnerships, the European Union aims to secure its position as a key digital player and stimulate economic growth. Notably, the Global Gateway initiative is seen as an alternative to the Chinese Belt and Road Initiative and the Chinese Digital Silk Road.

These Chinese initiatives have been influential in expanding the country’s digital and economic reach across the globe. However, the European Union’s Global Gateway presents an alternative approach, emphasising equal partnerships and outreach to the Global South. By offering a viable alternative, the European Union aims to provide more choice and diversity in digital development strategies.

In a panel discussion focused on the Global Gateway, experts in infrastructure projects and digital policy discuss the potential benefits of this initiative, particularly for the Global South. The discussion underscores the importance of understanding the impacts of current infrastructure projects in the Global South to inform and shape conversations around the Global Gateway.

By considering the existing infrastructure landscape, the European Union can work towards forging more equal and mutually beneficial partnerships. In conclusion, the Global Gateway initiative launched by the European Union represents a significant effort to promote digital sovereignty and strengthen the European Union’s position in the global digital landscape.

By investing in infrastructure projects and establishing economic partnerships, the European Union aims to stimulate economic growth and secure its own digital influence. The initiative is seen as an alternative to Chinese digital initiatives, highlighting the European Union’s commitment to equality and diversity in digital development strategies.

A panel discussion on the Global Gateway emphasises the importance of understanding the context of existing infrastructure projects in the Global South, bringing attention to the need for informed discussions and decisions.