How bits and bytes change the role of government Lunch Seminar OECD - - PowerPoint PPT Presentation

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How bits and bytes change the role of government Lunch Seminar OECD - - PowerPoint PPT Presentation

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Ministry of Economic Affairs How bits and bytes change the role of government Lunch Seminar OECD 22 September 2017 22 September 2017 Introduction I would like to discuss 3 topics in our lunch seminar today: I. The importance of

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Ministry of Economic Affairs

22 September 2017

How bits and bytes change the role of government

Lunch Seminar OECD 22 September 2017

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22 September 2017 Ministry of Economic Affairs 2

Introduction

I would like to discuss 3 topics in our lunch seminar today: I. The importance of digitalisation and what it means for the role of government

  • II. Questions around data-ownership, data-access and control

III.Outlook for the Dutch economy

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22 September 2017 Ministry of Economic Affairs 3

Digitalisation is transforming our economy and society

  • Main source of innovation, productivity gains and economic growth
  • Opportunities for tackling important social challenges
  • Improvement of the functioning of government
  • Increase service levels
  • Quality and timeliness of policy making
  • Better enforcement
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22 September 2017 Ministry of Economic Affairs 4

Digitalisation has an important impact on public interests

  • Obviously, digitalisation also has an important effect on different public interests
  • A long list of questions around different issues (non-exhaustive):
  • Privacy
  • (Cyber)security
  • Fair competition (dominance, level playing field)
  • Reliable and open information (fake news, filter bubbles)
  • Data-ownership, control and access (more on this later on)
  • Ethics (discrimination, human dignity, autonomy)
  • Consumer protection (and small businesses protection?)
  • Digital skills (students, but also citizens/employees?)
  • Impact on labour market
  • Tax collection
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22 September 2017 Ministry of Economic Affairs 5

A simple framework: digitalisation changes the roles of government

Market sectors Public sectors Threats Opportunities

  • 1. Public interests

under pressure

  • 2. New ways to

protect public interests, better regulation

  • 3. Increase

productivity in public sectors

  • 4. Limited

availability of necessary production factors

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Ministry of Economic Affairs 6

Focus on the interaction between public interests, technology and digitalisation in important sectors

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22 September 2017 Ministry of Economic Affairs 7

Outline

I. The importance of digitalisation and what it means for the role of government

  • II. Questions around data-ownership, data-access and

control III.Outlook for the Dutch economy

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Ministry of Economic Affairs 8

Data has some special characteristics – it is different from oil

  • Data is non-rivalrous but excludable
  • Data is a capital with increasing returns
  • Due to increasing relevance of data there is a variety of policy

questions around them

  • Privacy (data protection)
  • Data-ownership, access and control
  • Cybersecurity
  • Competition
  • …

Partly based on presentation by Christian Reimsbach-Kounatze (OECD), Enhanced access to data, Data Access and Transfer – EC workshop (June 8)

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Ministry of Economic Affairs 9

A very simple data chain to structure the different issues

Overview on next slide

Collection

  • investment in sensors,

software, networks

Possession/control

  • de facto control
  • legal protection

Access

  • compulsory: regulation
  • voluntary: contracts

Utilization

  • aggregate
  • combine
  • analytics

Utilization (re-use)

  • aggregate
  • combine
  • analytics
  • Questions on unwanted data

collection

  • Privacy/data protection and

cybersecurity

  • Examples: smart home devices,

security cameras, commercial cameras with facial recognition, WiFi-tracking in shops, etc.

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Ministry of Economic Affairs 10

‘Data ownership' is an umbrella for different kinds

  • f questions

Data ownership, control and access Typical questions Examples

  • 1. Data silos
  • A. How can data be

used better outside of the current data chain

  • r outside of a

particular company?

  • B. Are crucial data

sets exclusively controlled by a few large firms?

  • 2. Data control

How can a citizen or company control "his / her" data held by another party?

  • 4. Open data

What government data can made open? And under which conditions? Open scientific data/research?

  • 3. Data access for

policy making and enforcement Which datasets can government bodies use for carrying out their tasks? And under which conditions? Do governments have sufficient access to data from private undertakings? “Breaking down data silos” “Internet companies’ control of data gives them enormous power" "7 Tools that let uou control your own data“ “The land grab for farm data” “Overcoming 5 barriers to open government data” “The open-data revolution has not lived up to

  • expectations. But it is
  • nly getting started”

“How Airbnb routinely hoodwinks your city” “Government 'blocked' from accessing Twitter data to help spot terrorist plots”

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Ministry of Economic Affairs 11

We don’t need new ownership rights for data?

  • A traditional intellectual property trade-off
  • No need for an exclusive ownership right for businesses?
  • Lots of investments in data collection
  • Access to data can be made exclusive by technical means
  • Data protection (privacy) regulation already provides data

control rights for citizens

  • But the current legal framework is complex
  • Results in missed opportunities for data-sharing in B2B-

context?

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Ministry of Economic Affairs 12

Do we have the right framework to evaluate when to regulate access to data?

  • We regulate access to data for competitors in some specific

sectors and cases

  • Should be evaluated at sectoral level
  • When to regulate access and when not? Need for a better

(economic) framework?

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22 September 2017 Ministry of Economic Affairs 13

Outline

I. The importance of digitalisation and what it means for the role of government

  • II. Questions around data-ownership, data-access and control

III.Outlook for the Dutch economy

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22 September 2017 Ministry of Economic Affairs 14

Gross domestic product is picking up firmly…

Billions of euros in volumes

560 580 600 620 640 660 680 700 720 '08 '09 '10 '11 '12 '13 '14 '15 '16* '17* '18*

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… with quarterly growth accelerating

(quarter-on-quarter, percentage change)

22 September 2017 Ministry of Economic Affairs 15

0,2 0,4 0,6 0,8 1 1,2 1,4 1,6 '14 K2 '14 K3 '14 K4 '15 K1 '15 K2 '15 K3 '15 K4 '16 K1 '16 K2 '16 K3 '16 K4 '17 K1 '17 K2

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Annual growth is projected to be broad based…

22 September 2017 Ministry of Economic Affairs 16

  • 1,5
  • 1
  • 0,5

0,5 1 1,5 2 2,5 3 3,5 4 '13 '14 '15 '16 '17* 18* Consumption Exports Gross fixed capital formation GDP growth

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The unemployment rate is declining steadily…

Dashed line = CPB forecast

22 September 2017 Ministry of Economic Affairs 17

3 4 5 6 7 8 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

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… and firms are having more difficulty attracting personnel

22 September 2017 Ministry of Economic Affairs 18

2 4 6 8 10 12 14 16 18 '12 '13 '14 '15 '16 '17

% of firms where lack of personnel is limiting production

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22 September 2017 Ministry of Economic Affairs 19

Government debt (left) and deficit (right) are improving steadily

Percentage GDP, dashed line = CPB forecast

50 52 54 56 58 60 62 64 66 68 70 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

  • 6
  • 5
  • 4
  • 3
  • 2
  • 1

1 2 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

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The outlook for the Netherlands compares favourably to our peers

22 September 2017 Ministry of Economic Affairs 20

Percentage GDP NL EA OECD NL EA OECD NL EA OECD GDP 2,2 1,7 1,8 3,3 1,8 2,1 2,5 1,8 2,1 Private consumption 1,6 1,9 2,3 2,2 1,4 2,1 2,4 1,4 2,0 Gross fixed capital formation 3,1 3,4 1,3 6,3 3,4 3,2 4,8 3,3 3,1 Exports 4,3 n.a. 2,3 4,9 n.a. 4,2 4,5 n.a. 3,9 Imports 4,1 n.a. 2,7 4,5 n.a. 4,4 5,1 n.a. 4,0 Government financial balance 0,4

  • 1,6
  • 3,0

0,6

  • 1,2
  • 2,8

0,8

  • 0,9
  • 2,7

Government debt, maastricht def. 61,8 91,7 n.a. 57,2 90,4 n.a. 53,7 88,9 n.a. Unemployment (% labour force) 6,0 10,0 6,3 4,9 9,3 6,0 4,3 8,9 5,8

Source: OECD Economic Outlook June 2017, CPB Netherlands bureau for economic policy analysis

2016 2017 2018

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Risks to the outlook..?

  • Generally tilted to the downside:
  • Uncertainty about exit quantitive easing
  • Brexit may hurt the Dutch economy via trade
  • Geopolitical tensions (i.e. North-Korea)
  • Future course of American trade policy
  • Uncertainty about growth in China
  • To the upside:
  • Further strengthening of growth in the Eurozone and the US

22 September 2017 Ministry of Economic Affairs 21

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22 September 2017 Ministry of Economic Affairs 22

Annex

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22 September 2017 Ministry of Economic Affairs 23

OECD framework on data openness

Source: presentation by Christian.Reimsbach-Kounatze (OECD), Enhanced access to data, Data Access and Transfer – EC workshop (June 8)