ASIA
13 November 2017
Dealing with the challenges of the digital economy
The Pacific Economic Cooperation Council has called for upskilling and changing regulatory mindsets to deal with the challenges of the digital economy.
APEC members need to focus on building trust among our policymakers and regulators, understanding the unique circumstances in each of our respective economies to arrive at standards and norms that facilitate growth, innovation and job creation. This process needs to put front and center the impact that such rules have on micro and small and medium enterprises. New technologies are revolutionizing business models and the way in which businesses and consumers interact – from ride sharing services to mobile banking. This offers the opportunity to shape a new phase of growth – one that enables even micro and small and medium size enterprises to engage in global trade.
The impact of the digital economy on labor markets will be significant and appropriate adjustments will be needed. Routine jobs will be replaced by machines and systems, through the process of automation. According to the respondents of the PECC annual survey, some types of jobs are expected to decrease, such as clerical and assembly line work, while others such as technical and professional jobs are expected to increase. “There will inevitably be some shifts in the future labor market as certain jobs become redundant while new skills are required. Various digital tools and online platforms can help us become more inclusive in our approach to education and upskilling; this can be our chance to bring more people to benefit from easier access to knowledge and to better, higher paying jobs,” said PECC Co-chair Ambassador Tang Guoqiang. On-the-job training and informal education helped by online learning platforms will take renewed importance as they can offer flexible and on-demand training and learning.
APEC is an ideal platform for discussing how individual governments are dealing with the challenges of the digital economy given its non-binding, flexible nature. It can encourage whole-of-government approaches and emphasize the need for a shift in the regulatory mindset from solely one of risk management to include that of enabling innovation.
“Beyond being a risk manager, and an enforcer of sectoral regulation, the regulating authority needs to become an advocate for, and an enabler of, digital inclusion and innovation,” according to the PECC State of the Region 2017-2018 report released on the occasion of the APEC summit.
The digital economy, if successful, can promote efficiency, innovation, and inclusion. The “Industrial Revolution 4.0” promises new opportunities, but without a holistic policy framework, sound planning and inclusive approach, these opportunities can further widen the development gap in the form of a digital divide.
“Every industrial revolution is disruptive and the wave of digitalization that we are seeing across all sectors of our society is no exception,” said Eduardo Pedrosa, Secretary General of PECC and Coordinator of the Report. “While the governments need to protect the consumers, and keep the business environment secure, they also need to encourage and enable innovations and start-ups.”
The following issues related to digital economy were ranked the most important according to the PECC annual survey of opinion leaders:
-- Data protection
-- Digital infrastructure
-- Data privacy
-- Universal broadband access
-- Digital literacy
“All these transformative changes taking place today due to digitalization and automation offer opportunities for us to reverse the trend of a widening gap between the haves and the have-nots among and within the region’s economies,” said PECC Co-chair Don Campbell. “But we must make appropriate investment in human capital development to appropriately equip the next generation to stay competitive with the fast-changing demands of the digital age. We should also put in place balanced and secure policy environment that not only protect but also encourage the new technological innovations and empower small businesses,” he added.
Technological innovations and their applications are rapidly changing the ways in which we communicate, conduct business and connect. Policies, frameworks, rules and regulations need to continuously remain agile as well as increase capacities in order to adapt to such changes. In order to harness opportunities, and to ensure inclusive growth, appropriate and timely policy changes need to take place, and this requires building trust among regulators, politicians, businesses, negotiators and the civil society.
The State of the Region 2017-2018 report of PECC was released on the sidelines of APEC senior official and ministerial meetings ahead of the summit. This report includes the results of a survey of over 700 regional policy experts on key developments and challenges that the Asia-Pacific as a region is facing. The survey panelists were selected based on their expertise and direct involvement or influence on regional policy-making, coming from government, business and civil society.
According to the survey, the following issues related to digital economy emerged as part of top-10 priorities that the respondents considered important for the APEC Leaders to address in Da Nang:
-- Investing in human capital development in the digital age
-- Development of a regional digital economy framework
-- Developing a major initiative on the internet/ digital economy
The impact of the digital economy on labor markets will be significant and appropriate adjustments will be needed. Routine jobs will be replaced by machines and systems, through the process of automation. According to the respondents of the PECC annual survey, some types of jobs are expected to decrease, such as clerical and assembly line work, while others such as technical and professional jobs are expected to increase. “There will inevitably be some shifts in the future labor market as certain jobs become redundant while new skills are required. Various digital tools and online platforms can help us become more inclusive in our approach to education and upskilling; this can be our chance to bring more people to benefit from easier access to knowledge and to better, higher paying jobs,” said PECC Co-chair Ambassador Tang Guoqiang. On-the-job training and informal education helped by online learning platforms will take renewed importance as they can offer flexible and on-demand training and learning.
APEC is an ideal platform for discussing how individual governments are dealing with the challenges of the digital economy given its non-binding, flexible nature. It can encourage whole-of-government approaches and emphasize the need for a shift in the regulatory mindset from solely one of risk management to include that of enabling innovation.
“Beyond being a risk manager, and an enforcer of sectoral regulation, the regulating authority needs to become an advocate for, and an enabler of, digital inclusion and innovation,” according to the PECC State of the Region 2017-2018 report released on the occasion of the APEC summit.
The digital economy, if successful, can promote efficiency, innovation, and inclusion. The “Industrial Revolution 4.0” promises new opportunities, but without a holistic policy framework, sound planning and inclusive approach, these opportunities can further widen the development gap in the form of a digital divide.
“Every industrial revolution is disruptive and the wave of digitalization that we are seeing across all sectors of our society is no exception,” said Eduardo Pedrosa, Secretary General of PECC and Coordinator of the Report. “While the governments need to protect the consumers, and keep the business environment secure, they also need to encourage and enable innovations and start-ups.”
The following issues related to digital economy were ranked the most important according to the PECC annual survey of opinion leaders:
-- Data protection
-- Digital infrastructure
-- Data privacy
-- Universal broadband access
-- Digital literacy
“All these transformative changes taking place today due to digitalization and automation offer opportunities for us to reverse the trend of a widening gap between the haves and the have-nots among and within the region’s economies,” said PECC Co-chair Don Campbell. “But we must make appropriate investment in human capital development to appropriately equip the next generation to stay competitive with the fast-changing demands of the digital age. We should also put in place balanced and secure policy environment that not only protect but also encourage the new technological innovations and empower small businesses,” he added.
Technological innovations and their applications are rapidly changing the ways in which we communicate, conduct business and connect. Policies, frameworks, rules and regulations need to continuously remain agile as well as increase capacities in order to adapt to such changes. In order to harness opportunities, and to ensure inclusive growth, appropriate and timely policy changes need to take place, and this requires building trust among regulators, politicians, businesses, negotiators and the civil society.
The State of the Region 2017-2018 report of PECC was released on the sidelines of APEC senior official and ministerial meetings ahead of the summit. This report includes the results of a survey of over 700 regional policy experts on key developments and challenges that the Asia-Pacific as a region is facing. The survey panelists were selected based on their expertise and direct involvement or influence on regional policy-making, coming from government, business and civil society.
According to the survey, the following issues related to digital economy emerged as part of top-10 priorities that the respondents considered important for the APEC Leaders to address in Da Nang:
-- Investing in human capital development in the digital age
-- Development of a regional digital economy framework
-- Developing a major initiative on the internet/ digital economy