Thread by @CSISIndonesia

Good afternoon! We are currently starting our Plenary Session 2: "Deep Economic Impacts of the Technology Revolution". We are honored to have Mr. Vo Tri Hanh, Chair of TNCPEC, as our moderator in this session. #2019CSISGlobalDialogue

Mr. Hanh opened the session by delivering his speech on globalization.

"The future of globalization will be different and faster than people expected."

We are honored to have Mr. Richard Baldwin, Professor of Graduate Institute of International and Development Studies in Geneva, to give his keynote speech for the second plenary session.

Mr. Baldwin believes that the future of globalization would be very different. It's changing faster than what most people believe or expect. Harder and deeper thinking is necessary. He simplified and clarified the idea of how globalization changes.

Arbitrage drives globalization. Think about it this way: arbitrage, when things are more expensive in other parts, the company take benefits by selling it there, and, vice versa with cheaper prices. This relates to these three fundamental elements: goods, know-how, and services.

This arbitrage itself is constrained by 3 costs: Trade, communication and face-to-face barrier. When technology got better after the 1990s, global value chain revolutionized as it combined with foreign production. Nowadays, face-to-face allows the arbitrage of labor services.

Being less-remote changes globalization, such as labor service and save the face-to-face cost. Digital technologies make remote workers less remote, which open up a new type of globalization. How Digi-tech making it possible:

1. Domestic telecommuting is preparing the way (like in the US, working remotely), rich country companies adopting collaborative software, cloud-based making it easier to telecommute the workflow – leading to the increase in foreign service workers.

2. Online freelancing platforms are now connecting people. It is the container ships of new globalization, service providers from poor countries to richer countries, and connecting workers around the world.

3. Excellent telecommunication (telepresence, VR, AR) are making people as if meeting face-to-face when they’re actually not.

He concluded his speech by summarizing 2 main impacts of globalization, namely:
1. the past is about goods, now it is all about services
2. Telemigration fosters backlash, digital technology and globalization in advanced economies

We now move forward to our first speaker, Mr. Michael Fung, Deputy Chief Executive of Industry, Chief Human Resource Officer & Chief Data Officer, SkillsFuture SG.

He said that young people need to be prepared to be able to navigate multiple careers.

However, the education structure is very traditional for many years which is not adopted for the disruptive economy.

Regarding the new paradigm of education and training, Mr. Fung mentioned, as follows:

1. Education should be more lifelong
2. Creating multiple pathways
3. Integrating work and study elements
4. Prioritizing certain areas
5. Empowering individual is important

Also, Mr. Fung addressed the specific initiatives to empower individuals, such as:

1. Providing training
2. Broadway cost-free fundings
3. Providing a national portal offering guidance labors vacancies & training for all citizens
4. Polytechnics
5. Private training organization

In closing, Mr. Fung said that the government was like forecasting to deliver a long-term plan. He emphasized that it needed to be shifted into one that nurtures the economy to be more flexible and agile.

Next, we are pleased to have Mr. Peter Lovelock, Director of TRPC, as our second speaker.

He stated that in the long term, the trend will be towards the valuation of the asset: data & what it enables. Project in Myanmar: deploying centralized QR code system, to put out this method for areas with no retail access. This shows that data analytics has done elsewhere.

The objectives of data analytics are interruptibility, oversight, and financial inclusion. Meanwhile, the central bank has less oversight. This equation is happening across the sectors, creating a cycle and different domains.

For this model to work, they need the private capital and operation which are built intrinsically (private and the public need to work together). By doing this, there will be new public-private models, based upon data access, sharing, and usage.

Moreover, the Bank needs to make bets. But how do we see and measure impact? We don't have consistent data. So how? Double down on them and think about the labor training. Inability to measure success, development, and impact, like smart cities.

Also, the only way this world can progress is by setting the baseline of the digital economy and digital trade measurements, which build upon data (including protection and consumption) and trade in data.

We need to refocus on the framing of the impacted issues which simultaneously use data, so it would be evidence-based. Policy initiatives need to be holistic. Our regulators need to be retrained so they will be more responsive and agile in making reformations.

Our last speaker for the 2nd plenary is Mr. On Lee, CEO of GDP Labs. Mr. Lee referred to Wikipedia about Digital divide; meaning, as having access and the lack thereof. However, in Indonesia, it's improving. People now start with AI divide.

Now, he said that Z and Y generation are born connected with an internet connection. In fact, they feel strange if they don't have it. Mr. Lee also has a theory about native vs immigrants.

First is ignorance yet, but this can be dealt with education. Second, is wait-and-see attitude (having money, but not the skills), and third, is lacking infrastructure.

Mr. Lee suggested several criteria to invest in technology, such as :
1. Investing in government support
2. Academia-teaching and researching
3. Education
4. Commitment and partnering with experts and universities
5. Building infrastructure and invest

He concluded his speech saying that now mankind has collected more data than ever: people now have tools and ways for data-collection. Thus, the more data people have, the more they process it, the less risky is their decision.

He also said, "We are hoping that GDP Labs could make a small contribution in Indonesia by investing in talent globally, so we can accelerate the AI-adoption."