Date : 07/06/2023

Relevance: GS Paper 3 : Science & Technology

Key words: Principle-based regulation, G-20, Meta-platforms, Cyber-attacks, Virtual activity

Context -

• Ever since the Dot-com bubble burst in 2000,Technology's rapid development has transformed societies worldwide, presenting both benefits and complex challenges.
• While there is no denying that this has made life easier, it has also thrown up complex challenges that call for a revisit of some fundamental notions in polity and governance.

Challenges to the Notion of Nation-States:

• Changing Dynamics: The advent of technology has challenged the traditional concept of nation-states..For Example. cyber-attacks, which have a ripple effect on the physical boundaries to challenge their socio-economic and political existence. The advent of Web3, massive peer-to-peer networks and blockchains has allowed actors, both state and non-state, to influence areas such as trade, commerce, health and education even while remaining outside of financial and judicial scope.
• Enforceability Issues: Geography-based rules face difficulties in enforcement due to the universal nature of virtual activities. Lack of globally-accepted norms hampers law enforcement and cooperation between nations in addressing cross-border challenges.
• Regulatory Inefficiency: The government's capacity to administer and regulate new technologies has been exposed, as multinational corporations and non-state actors collaborate globally, bypassing traditional administrative and regulatory institutions.

Governing Complexities and Technology:

• Economic Influence: Large tech companies hold significant economic power, surpassing the GDP of nations, with data becoming the most valuable raw material.

• For Example the five largest American tech companies (Google, Amazon, Facebook, Apple, and Microsoft) have symbolically surpassed Germany’s GDP (the world’s fourth largest economy) in terms of valuation.These meta-platforms refine algorithms to influence and control user activities.

• Sovereignty and Privacy: The borderless nature of technology challenges accepted concepts of sovereignty, jurisdiction, regulation, and privacy. A principle-based global order can address enforceability challenges and provide guidance to emerging economies.
• Digital Health and Data Sharing: The adoption of digital health for managing global pandemics requires a trusted global regulatory system. As we have seen in case of the COVID-19 pandemic, the way forward in managing future global pandemics is probably by the adoption of digital health.

India needs comprehensive data transfer and privacy laws, supported by a global regulatory framework.

India's Leadership as G-20 Chair:

• Importance of Global Coordination: India, as the current G-20 chair, has the opportunity to lead in shaping a global order for technology, similar to its initiatives in green initiatives and disaster resilience.
• Call for a Coordinated Approach: The Finance Minister has emphasized the need for a globally-coordinated regulation of digital assets like crypto-currencies, considering their potential risks to the global financial ecosystem.

Conclusion:

As technology transcends geographical boundaries and poses new challenges, a global order is necessary to navigate complexities and ensure equitable governance. India, as the G-20 chair, can play a crucial role in leading the efforts to establish a principle-based global order for technology, benefiting all nations and promoting sustainable development.

Source : The Hindu