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2.4 Economic and Business Perspective

Economic and Business Perspective – “Internet governance and general economy including Internet/digital economy”

Class Outline

   Internet/digital economy is around 5% of the global economy now, and it would grow to 10% or more in the coming decades.
   We may consider general economy with Internet, and Internet economy. 
        1. General economy 
                Financial service, manufacturing (Industry Internet, Industry 4.0), other service,..
                Internet/Digital economy; around 5% of Global GDP which is around 80 trillion dollars now
         2Internet/digital economy

Class Description (Jiro Kokuryo)


Class Description (Jim Foster)  [ppt]

    Moving to Digital Economy

This presentation will focus on the companies and the technologies that are driving the transition to a fully Digital Economy and look out at the political, economic and social changes to expect over the next several years.  The “future” is not tomorrow but now,

By 2020, it is estimated that there will be 26 billion devices connected to the Internet, reshaping key sectors of the regional economy from entertainment to healthcare to manufacturing. In the expanding Digital Economy of the Asia Pacific region, information technologies and consumer-oriented technology will be further transformed by new operational technologies (OT) that will run factories and take charge of logistical systems.  In this new era, the Internet will be as pervasive as electricity in advanced nations and have an equally profound effect on lifestyles.

Among the major challenge is the issue of sustainable development and addressing the digital divide.  The Cloud, IOT, Big Data, AI and Robotics can potentially improve the lives of the next billion in Asia, but they also may exacerbate the differences between the advanced group of economies in the regions and the still developing cohort of countries that are not well positioned to absorb yet another wave of technology.   The problem may be most acute in countries like Indonesia and India where size, language and cultural difference pose special challenges.  

For the advanced societies, a key problem is the adaptation of legal and social norms to take into account a new world where e-commerce involves not just the exchange of goods but data flows, financial transactions, and the real-time availability of logistical information.   If nation-states are not able to respond quickly enough to the needs of businesses and consumers in this area, major players in the private sector may have to jump ahead of governments to create new norms and processes until national legal systems can catch up.  In this situation, trade policies such as the TPP may prove to be both a flexible and more acceptable tool for managing the Digital Economy than more politically sensitive Internet governance mechanisms that impact on national cyber sovereignty.

    Key concepts in economics and business that are helpful in understanding the internet economy are introduced. Will discuss how internet may affect             some of the key economic and business variables that affect the shape of the society. Will also discuss how technologies may be designed to affect the     variables to bring about favorable social outcomes. Finally, we will have a discussion on how to “govern” the interaction between technologies and the         economy/society.

Video: 2017 APSIG by Jiro Kokuryo, 2017 APSIG by Jim Foster

Lecture Pool: Jim Foster

Additional Candidate LecturersNoriuki Yanagawa, Toshiya Jitsuzumi, Wonki Min,....




   $80 Trillion World Economy, 2018.
   Philippe Aghion et al, Artificial Intelligence and Economic Growth, 2017.10.
   Yochai Benkler, Wealth of Net.

    Boston Consulting Group,“The $4.2 Trillion Opportunity – The Internet Economy in the G-20,” p.51, 2012.
    Boston Consulting Group, Greasing the wheels of the Internet economy, 2014.
    Prinavera de Filippi, Invisible politics of Bitcoin, Special Issue on Doing Internet Governance, Internet Policy Review, 2016.9.30

    Jim Foster, Reading list, Moving to Digiital Economy, 2017.7.26.

    Gartner, Gartner identifies 3 mega trends that will drive digital economy to the next decade, 2017.8.

    GCIG, One Internet, 2016.

    Daniel Hamilton, The Transatlantic Digital Economy, 2017.

    HBR, What’s the Purpose of Companies in the Age of AI?, 2018.8.

    Digital Economy Conference, London, 2018.5. (by Sociological Imagination)
    Internet Society, Thoughts on the Internet Economy Sessions at IGF 2015, 2015.

   Joichi Ito, Blockchain will do to banks and law firms what internet did to media, 2017.3.8.

Jiro Kokyryo, Presentation Material, APSIG, 2017.

Jovan Kurbalija, Economic Basket, in Introduction to Internet Governance, 2015.

McKenzie  Global Institute, Digital globalization: new era of global flows, 2016.2.

McKenzie, China's digital economy, 2017.7.
    McKenzie, Smart City, 2018.7.
    McKenzie, Modeling the impact of AI on the world economy, 2018.9.
    McKenzie, Digital China, 2017.
    McKenzie, How China and the world can win together, 2018.12.

MIT Technology Review,The World Economic Forum warns that AI may destabilize the financial system, 2018.8. 
MIT Technology Review, China is racing ahead in 5G, 2018.12.

MIT Technology Review, Implication for AI in Global Finance, 2019. [video]

Nick Meyne, Blockchain: Real world use case, 2017.

OECD, Digital Economics Outlook, 2017.

David Rotman, It pays to be smart, MIT Technology Revciew, 2017.6. 

Kenji Saito, Blockchain, 2016. [ppt] [ppt in Japanese;]

Matt Taylor, Implication for AI in global fiance, Emtech, 2016.5.

UNCITRAL, Electronic Commerce.

World Economic Forum, Future of Digital Economy, 2015.


WTO, Work Program for Electronic Commerce.