The Germany B20 Digitization Task Force

The G20 is today the worlds most important economic grouping and the agenda of issues that the G20 leaders must deal with are of utmost importance to all nations and their citizens. eNotus has for almost two decades had a close involvement with G7 and G20 agendas. The OECD is the primary knowledge partner of the G20 and through B20 the business body tasked with recommending policy ideas a group of six task forces are established to guide this process. The photo shows a joint meeting of the B20 Task Force and BIAC on Employment in Paris during June. Mr. Phil O’Reilly the chairman of BIAC addresses the forum that includes the B20 Turkey Task Force Chair Mr. Ali Koç at the far right of the panel. The B &G 20 2015 Summits in Antalya provided a great opportunity to meet and mix with business leaders, academic researchers and government and institutional officials. From small enterprise entrepreneurs to the Chief Executives of global giants like Sam Walsh from Rio Tinto were attending – caught in the photo below with Dr. Andy Song. Ali Koç of the leading Turkish industrial group Koç Industries is seen in the other photo with Dr. Song. Ali Koç played an important role in the B20 and led the Employment Task Force under the Turkish Presidency. Dr. Song has been asked to provide advise on employment by the Chinese, as AI is an important contributing factor to the issues of jobs crisis.

Sam Walsh and Dr. Andy Song

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MAY, 2017

On May 3rd, 2017, the B20 has officially handed over its Policy Recommendations to German Chancellor Angela Merkel in Berlin.

The recommendations are the product of a yearlong process of our seven Taskforces and Cross-thematic Groups, which comprise over 700 members from all G20 economies. Developed under the theme “Building Resilience – Improving Sustainability – Assuming Responsibility”, the B20 Policy Recommendations span the entire scope of the G20 process: from the need to maintain an open, rule-based trading system, to facilitating sustainable finance and increased efforts to widen the inclusiveness and resilience of the labor market in the face of technological change.
Germany assumed the G20 Presidency at a time of growing uncertainty around the world. The business community stands ready to take responsibility and do its part. We would like to thank all our members and partners for their continuous engagement, without which this process would not have been possible. You can download the English version of the B20 Summary document containing the Policy Recommendations here. The German version is available for download here.

The German Presidency of the G20 for 2017 have created a Digitization Task, Force DTF.

eNotus Inc have played a participant role on Task Forces for the Turkish and Chinese G20 and continue this role through the DTF for 2017, The following blog lists items of interest regarding projects that eNotus is involved in.

eNotus comments on Digital Task Force Policy Paper and Berlin B20 meetings December 2 2016

Reymond Voutier,  Andrew Lauter eNotus Inc.     December 9, 2016 The feeling we have regarding the further comments made on the Policy Paper during the December 2 meeting is one of general agreement with most of the comments from the floor. We congratulate the team for the latest draft. Our comments are mainly on the trustworthiness and regulations on AI enabled technologies, especially driverless cars and autonomous weapons.  Without a globally consented regulatory framework, the rapid growth of AI may results in irresponsible development and hence cause a major public backslash against AI, which will be counterproductive for the achievement of Industry  4. We do however emphasis 1 There is considerable problem with the assumption that AI is understood from an industry and government  point of view – even among the G20 countries and in relation to terms like Industry 4 and Collaborative Economy for example. 2 We and partners agree with the comments made by a US Venture Industry participant whom spoke of the shortage of Data Scientists & Data Modellers with AI and Business Architecture experience required to meet even current demands by digital enterprise players. This will be a serious constraint and can impact the broader economy in a negative way and is part of the reason for ‘understanding’ raised above and our comments below. 3 The idea that G20 has deep expertise in AI and the appropriate Eco systems is perhaps misleading as organisations with whom we have been discussing these matters including the OECD are not staffed nor tasked for this work. 4 Mr Bernhard Welschke of BIAC made reference to – Measurements and enabling a understanding to be achieved – on what we are talking about- allowing a flow into the meetings at the OECD in March. This would seem critical if ministerial level people are to have a common starting point on the subject. Examples would be the best way to do this and we have ideas to share in this regard. One example in one country we are familiar with is ciair.org we have other examples in the area of trust and collaboration being discussed at the OECD among other places. We would urge the B20 to request that the G20 encourages multi-facet collaborative platforms which foster collective views on AI and related activities.

But addressing the divide as a standalone, technical issue, which has been done since the late 1990 and by the G8 who got involved in 2000 with the Digital Opportunity Task Force, will not work. As the report data indicates, the digital divide is a reflection of current socio-economic gaps, at least in most developing countries. Closing the digital divide should thus be linked to closing the latter divides as people can indeed be connected but they will not necessarily be new customers for industry 4 as they lack not only the purchasing power but also the skills and capacities to be part of the network. Governments have a key role here and the report suggests a clear role for them with smart infrastructure but does not make the link to improving living standards in those countries this is the point that should be emphasized by the DTF to the B20 and the G20 leaders.

  1. It could be interesting to segment by type including SMEs. At least in the US, large companies are buying SMEs that compete with them or have new technologies that can enhance their business models. This leaves a gap and has an impact on jobs.

SMEs are the greatest providers of jobs, SMEs have slightly different priorities than large corporations and multinationals. We are not sure for example how relevant is industry 4.0 for a small enterprises with a niche market in some geographic location, etc.

  1. While cybersecurity is rightly emphasized, privacy and confidentiality issues are largely ignored as well as massive surveillance. These are clearly topics that digitalization has exacerbated and thus need to put on the table. Data exchange is fine as long as privacy is protected. In addition, the jurisdictional or legal issues about data are also fundamental and are being debated at this very moment.

The EU approach to the topic is very different from that of the US, and other G20 countries such as Brazil have their own take too. Reymond Voutier / Andrew Lauter /eNotus Inc / Research ideas from Raúl Zambrano

eNotus makes the following recommendations:

October 27 2016

– replacing liability with trustworthiness, one of the three subtopics under Topic AI. – Topic 1: Global connectivity. We welcome this topic as timely and significant.. “Policies towards a universal, trustworthy, inclusive, and secure digital framework for international business, in the public and private context” is an essential undertaking. The importance of the trustworthiness aspect of this framework should be emphasized. The proposed policies should encourage trust under this framework to provide the necessary confidence from all participating parties. A trusted framework means the participating business are trustworthy, the information and interaction between them is trustworthy, and the technology and the framework itself is trustworthy.
Some further thoughts re the BCG induction document.

  1. The BCG induction document is very good, both the governance process and the criteria to accomplish the task have been spelled out.
  2. The issue of jobs is a big one as the traditional theory of skills-based gap due to education lags is being challenged, at least in the US where many college graduates are having a hard time finding jobs. Digital is a critical part of Jobs crisis going forward – if anything, Industry 4.0 will certainly reduce costs as well of jobs, especially if deep learning and robotics are quickly introduced, in developing countries as well as the G20. The question for the DTF is: if digitalization is becoming an increasing component of GDP growth, how will the lack of job creation affect such?
  3. The draft addresses the issue of the digital divide without using this concept, fortunately. Increasingly access to ICTs is vital for the private sector as that is where new markets and customers will be.
But addressing the divide as a standalone, technical issue, which has been done since the late 1990 and by the G8 who got involved in 2000 with the Digital Opportunity Task Force, will not work. As the report data indicates, the digital divide is a reflection of current socio-economic gaps, at least in most developing countries. Closing the digital divide should thus be linked to closing the latter divides as people can indeed be connected but they will not necessarily be new customers for industry 4 as they lack not only the purchasing power but also the skills and capacities to be part of the network. Governments have a key role here and the report suggests a clear role for them with smart infrastructure but does not make the link to improving living standards in those countries this is the point that should be emphasized by the DTF to the B20 and the G20 leaders.

  1. It could be interesting to segment by type including SMEs. At least in the US, large companies are buying SMEs that compete with them or have new technologies that can enhance their business models. This leaves a gap and has an impact on jobs.

SMEs are the greatest providers of jobs, SMEs have slightly different priorities than large corporations and multinationals. We are not sure for example how relevant is industry 4.0 for a small enterprises with a niche market in some geographic location, etc.

  1. While cybersecurity is rightly emphasized, privacy and confidentiality issues are largely ignored as well as massive surveillance. These are clearly topics that digitalization has exacerbated and thus need to put on the table. Data exchange is fine as long as privacy is protected. In addition, the jurisdictional or legal issues about data are also fundamental and are being debated at this very moment.

The EU approach to the topic is very different from that of the US, and other G20 countries such as Brazil have their own take too. Reymond Voutier / Andrew Lauter /eNotus Inc / Research ideas from Raúl Zambrano

G20 leaders told ‘avoid empty talk’ by China’s Xi Jinping

China’s President Xi Jinping has urged leaders of the world’s 20 largest economies to avoid “empty talk” as they look to quicken economic growth. World leaders are at the annual G20 economic summit, which is being hosted in China for the first time.

China’s President Xi Jinping has urged leaders of the world’s 20 largest economies to avoid “empty talk” as they look to quicken economic growth. World leaders are at the annual G20 economic summit, which is being hosted in China for the first time. President Xi said the global economy was at a “crucial juncture” due to volatile markets and feeble trade. Also discussed on the first day of the G20 were the global steel crisis, trade barriers and the UK’s Brexit talks. President Xi said: “Against risks and challenges facing the world economy, the international community has high expectations of the G20 in the Hangzhou summit.” German Chancellor Angela Merkel said the G20 leaders had agreed they need to work together to increase economic growth.

Ahead of the meeting, the International Monetary Fund (IMF) warned it was likely to downgrade its forecast for global economic growth again this year. The IMF has already reduced its global outlook after the Brexit vote, cutting forecasts for world GDP growth to 3.1% for 2016 and 3.4% for 2017.

‘What Brexit means’

It is the final G20 summit for US President Barack Obama and the first for British Prime Minister Theresa May.

At a joint press conference, President Obama said the first task for Britain following the EU referendum was to “figure out what Brexit means with respect to Europe”. He added that the US would prioritise its trade talks with the EU – known as the Transatlantic Trade and Investment Partnership (TTIP) – ahead of talks with the UK. Mrs May will be explaining at the two-day summit in the city of Hangzhou what the British decision to leave the EU might entail. It comes as Japan’s government has issued a stark warning about the possible impact of Brexit on the country’s firms operating in the UK.

Hinkley Point

Mrs May has also defended her surprise delay in making a decision on the £18bn Hinkley Point nuclear power project, saying she would “look at the evidence and consider it properly”. “I’ve been very clear that I will be doing that and will be taking a decision sometime this month,” she added.

The Prime Minister is due to discuss the project with President Xi amid heightened diplomatic tensions over her perceived concerns about Chinese involvement in Hinkley Point.

Steel crisis

China’s continued production of cheap steel was also an issue on the opening day of the summit. European Commission President Jean-Claude Juncker said China must address its problem of industrial overcapacity, saying it was “unacceptable” the European steel industry had lost so many jobs in recent years. “Overcapacity is a global problem but there is a particular Chinese element,” Mr Juncker said. He also defended the EU commission’s decision to hit tech giant Apple with a €13bn (£11bn) bill for unpaid taxes, saying it was not aimed at the US. “We are basing our decisions on facts and on the legislation,” Mr Juncker said. “This is not a decision against the United States of America.”

The G20 is today the worlds most important economic grouping and the agenda of issues that the G20 leaders must deal with are of utmost importance to all nations and their citizens. eNotus has for almost two decades had a close involvement with G7 and G20 agendas. The OECD is the primary knowledge partner of the G20 and through B20 the business body tasked with recommending policy ideas a group of six task forces are established to guide this process. The photo shows a joint meeting of the B20 Task Force and BIAC on Employment in Paris during June. Mr. Phil O’Reilly the chairman of BIAC addresses the forum that includes the B20 Turkey Task Force Chair Mr. Ali Koç at the far right of the panel. The B &G 20 2015 Summits in Antalya provided a great opportunity to meet and mix with business leaders, academic researchers and government and institutional officials. From small enterprise entrepreneurs to the Chief Executives of global giants like Sam Walsh from Rio Tinto were attending – caught in the photo below with Dr. Andy Song. Ali Koç of the leading Turkish industrial group Koç Industries is seen in the other photo with Dr. Song. Ali Koç played an important role in the B20 and led the Employment Task Force under the Turkish Presidency. Dr. Song has been asked to provide advise on employment by the Chinese, as AI is an important contributing factor to the issues of jobs crisis.

Sam Walsh and Dr. Andy Song

Dr. Song is seen with Jeffrey Hardy the Director of ICC G20 CEO Advisory Group a important group of business leaders under the chairmanship of Marcus Wallenberg from SEB in Sweden that are coordinated through the ICC to target G20 policy development on worldwide scale. In the other photo Dr. Song and Alibaba executives take a break and discuss matters relating to the Chinese Agenda.

Jeffrey Hardy and Dr. Andy Song

Ali Koç and Dr. Andy Song

Alibaba executives and Dr. Andy Song

eNotus Alibaba Global Think Tank Summit on the new Economy

eNotus Alibaba Global Think Tank Summit on the new Economy 2

eNotus Alibaba Global Think Tank Summit on the new Economy 3

eNotus B20 Empolyment Taskforce Meeting Kickoff Meeting

eNotus Empolyment Taskforce Meeting

eNotus Infrastructure Taskforce Meeting

eNotus Plenory session in the Golden Hall

eNotus The Great Hall hosting the B20 Kickoff Meeting

eNotus has shown increased interest in this years G&B 20 events taking place in China. Mr Nigel Arthur the regional Vice President based in Hong Kong & Singapore joined Dr Andy Song to attend the Alibaba Research Summit into the Digital Economy in January before attending the Kick Off meeting for this years B20. Dr Song is a member of the Employment Task Force and Mr Arthur the SME Task Force. They also had discussions with Mr Sun Xiao the B20 Policy Director at the CCPIT. Mr Andrew Lauter and Mr Reymond Voutier are substitute members of the respective Task Forces. Among the photos are those at the Alibaba Summit and the Kick Off meetings for the B20 and individual Task Force sessions. The Kick Off meeting was addressed by the Vice Premier of China Mr Wang Yang.

At OECD week, Paris, June 2015

Dr Andy Song, eNotus RMIT, Chisato Mino, Japan, Maoko Kotani Anchor, BS Japan TV, Reymond Voutier, eNotus, William Saito, Special Advisor Cabinet Office, Government of Japan.