David Drummond (Google Chief Legal Officer) – Big Tent Ottawa Conference (Jun 2013)

Chapters

Abstract

“Global Connectivity Revolution: Balancing Economic Growth, Governance, and Privacy in the Digital Age”

In the next decade, the internet’s expansion, primarily via smartphones, will connect billions more people worldwide, greatly impacting governance, economics, and individual empowerment. This surge in connectivity presents a unique opportunity for countries like Canada, which boasts strengths in talent, rule of law, and business formation, to capitalize on digital growth and lead in innovation. However, this rapid digital expansion also brings challenges, including the adaptation of governments to empowered individuals, the balancing act of companies like Google between local laws and global values, and the complexities of digital trade and data security. This article delves into these multifaceted aspects, highlighting the potential and the perils of our increasingly interconnected world.

Economic Opportunities and Challenges:

Canada’s Digital Leadership:

Canada’s combination of talent, legal framework, and business-friendly environment positions it as a potential leader in the digital economy. The rise of innovative businesses and technical talent, alongside robust telecommunications infrastructure, can catalyze economic growth.

Small Businesses and Global Markets:

The internet’s rapid growth has brought billions of new users online, primarily from developing countries and non-English speaking regions. This surge in connectivity raises questions about the relationship between citizens and the state, especially in the context of governance and democracy. Internet advancements have drastically reduced the costs of starting and running businesses. Platforms like Google facilitate small businesses’ access to global markets, transcending traditional geographic limitations.

Digital Trade Dynamics:

Digital trade, driven by creativity and innovation, levels the economic playing field, offering unique opportunities, especially for developing countries. This digital landscape presents opportunities for the developing world, allowing them to connect and share their creativity with the rest of the world. This exchange fosters innovation and economic growth, leading to a positive impact on the global economy. The adaptation of traditional trade regimes to digital realities poses significant challenges, necessitating new approaches to data flow and intellectual property rights.

Governance and Freedom:

Internet Freedom and Authoritarian Challenges:

The empowerment of individuals through internet access could lead to more democratic governance, but this is not guaranteed. Authoritarian regimes might attempt to curtail internet freedom, posing a dilemma for companies like Google that advocate for openness but must operate within these regimes. David Drummond, Google’s Chief Legal Officer, believes that internet technologies empower individuals to become more involved in politics and hold governments accountable. However, governments can also use these tools to control and filter information, leading to complex and context-sensitive situations. Drummond emphasizes that established democracies can improve accountability, while emerging democracies can strive for better governance through internet connectivity.

Google’s Navigational Challenges:

Google exemplifies the tightrope walk of maintaining its values of openness and freedom while adhering to diverse local laws. Google operates globally and must abide by local laws to be a local player. The company’s values of openness, freedom, and empowerment clash with censorship and blocks, which are seen as “bugs” that need to be circumvented. Google faces challenging situations in countries like India, where free speech and expression must be balanced with cultural sensitivities. The company aims to operate everywhere as a force for openness and prefers serving markets from the outside if governments restrict internet freedom. Google’s strategy involves operating globally, aligning with governments that share its vision of an open internet, and avoiding markets where restrictions conflict with its principles.

National Interests and Data Security:

National Champions and Connectivity:

Policies favoring local internet firms and restrictions on foreign telecom ownership are prevalent but may be unsustainable in the long term. The global nature of the internet challenges these nationalistic approaches, emphasizing the need for open connectivity and competition.

Data Security Concerns:

With the increasing reliance on cloud services, concerns about data security and national interests have intensified. Canada, while closely collaborating with the US, faces the dilemma of ensuring data security within its borders against cyber threats.

Patriot Act and International Cooperation:

The US Patriot Act raises concerns about data privacy, but it’s part of a larger framework of international cooperation in law enforcement and security. Global cloud platforms offer robust security measures, but governments still grapple with balancing data protection and the benefits of cloud computing.

Talent and Innovation:

The Global Talent Race:

As the digital economy grows, the competition for skilled talent intensifies. Countries must create environments that attract and retain global talent, fostering innovation and productivity.

Connectivity and Openness:

Broadband and Open Internet:

Expanding broadband access is crucial for harnessing the internet’s benefits. Policies promoting open internet and including it in trade negotiations are vital for maintaining the free flow of information.

Internet as a Human Right:

Access to the internet is increasingly recognized as a fundamental human right, essential for freedom of expression and opportunity.

Technical and Social Implications:

Technical Balkanization:

The fragmentation of the internet into isolated networks, known as technical balkanization, poses a significant threat to its growth and potential.

Wearable Technology and Privacy:

The rise of wearable computing, like smart glasses, brings convenience and innovation but also raises privacy and social concerns. Google Glasses, for example, sparked debates about the balance between technological advancement and privacy. Google’s chief legal officer, David Drummond, foresees wearable computing revolutionizing many aspects of life, but he also acknowledges the need to establish etiquette and consider potential awkwardness. He emphasizes the significance of disclosure and transparency when it comes to data handling and usage, particularly in light of the company’s decision to disclose its compromise in China and its subsequent withdrawal from the country.

Lessons from International Experiences:

Google’s China Conundrum:

Google’s withdrawal from the Chinese search engine market highlights the complex interplay between business interests, values, and political censorship. This experience underscores the importance of robust cybersecurity measures and navigating geopolitical sensitivities in global operations.

Emerging Global Opportunities:

As the world becomes more interconnected, opportunities for individuals and businesses are increasing. Education, technology, and social policies contribute to this expansion of opportunities. Cities need to be welcoming and accommodating to attract and retain talent.

Importance of Broadband Connectivity:

Broadband connectivity is essential for realizing the benefits of a connected world. Governments should prioritize policies that expand broadband access and infrastructure.

Government Policy and Data Flow:

Governments should adopt policies that promote openness and free flow of data across borders. Inclusion in trade agreements can incentivize countries to commit to keeping the internet open.

Internet Access as a Human Right:

Freedom of expression is a fundamental human right. Internet access has become a crucial means of communication and personal fulfillment.

Challenges to Global Connectivity:

The balkanization of the web, with countries implementing restrictive internet policies, is a major impediment to global connectivity. Lack of uniform regulations and standards across countries can hinder cross-border digital interactions.

Internet Regulation and Local Markets:

Countries often regulate the internet to protect local markets, close them off to foreign competition, and favor national champions. China’s policy towards Google is partly about censorship and partly about promoting local internet firms. Free trade principles have not been applied to data, trade, and information.

Information and Trade:

Information has unique attributes, including personal information, requiring specific protections. We have managed to trade hazardous substances; we can find ways to trade information that ensures comfort and security.

Telecom Ownership Restrictions:

Restricting foreign ownership of telecoms, like in the US and Canada, is unsustainable in the long run. Connectivity and opportunities created by the internet will challenge the current regime of restrictions.

Canada and the US:

Canada and the US share similarities in growth and consumption patterns. However, there is some divergence in internet adoption and the use of internet services in Canada, with Canada below the G20 average. Concerns about cloud computing and internet services in Canada may lead to falling behind in competitiveness.

Competitiveness and Cloud Services:

Cloud services offer cost-effectiveness, productivity, and efficiency gains. Utilizing global platforms with scale and resources can enhance security. Businesses spending more to do the same tasks as competitors in other countries is not ideal, especially with increasing global competition.

National Data and Trust:

The central question is why countries like Canada should entrust their national data and secrets to systems in other countries. Governments’ arguments for data sovereignty and control raise concerns about trade and competitiveness.

Information Security and Cloud Computing:

Concerns were raised about the Patriot Act’s impact on information security and privacy, particularly in the context of cloud computing. Drummond acknowledges the Patriot Act’s existence but emphasizes the need to focus on larger global threats, such as cyberattacks and corporate espionage. He suggests that regulatory overreach could hinder innovation and that a balanced approach is necessary, allowing for choice and flexibility in data storage and processing.

Data Storage and Privacy:

Drummond questions the need for strict regulations on data storage within national borders, arguing that many services are already based in the United States due to close cooperation between the two countries. He emphasizes the importance of due diligence and informed decision-making by local governments and private companies when choosing data storage platforms.

Talent Acquisition and Globalization:

Drummond acknowledges the global nature of talent and the competition for skilled individuals in the digital sector. He suggests that countries should focus on creating attractive environments for talented individuals to come and work productively.

H-1B Visa and Talent Attraction:

Drummond mentions Google’s billboard campaign in San Francisco, highlighting the company’s efforts to attract talent from other countries by offering solutions to H-1B visa issues. He acknowledges the importance of finding ways to attract and retain talented individuals from around the world.

Notes by: Hephaestus