Policy Briefs

Digital Transformation Policy Paper

The B20 Brasil Task Force on Digital Transformation released a working paper with recommendations on harnessing the power of digital transformation to improve quality of life in both B20 nations as well as nations outside of the grouping through three major recommendations along with policy actions for each.

First, the B20 Brasil Task Force on Digital Transformation recommended modernising regulations to improve connectivity between businesses and individuals and rolling out resilient ICT infrastructure to address regional gaps.

The second recommendation is safeguarding individuals and entities and promoting digital trust through synchronised cybersecurity and data protection norms as well as coordinated cyber action and data free flow. Finally, the B20 recommends utilising the revolutionary power of artificial intelligence through support for its development and adoption while normalising principles on ethics, sustainability, security, and inclusion in the sector.

Under the first recommendation from the B20 Task Force on Digital Transformation, which encourages improved connectivity as well as the development of ICT infrastructure, there are three recommended policy actions.

The first policy action is to accelerate the use of ICT infrastructure by encouraging regulatory modernisation and public-private partnerships to encourage investments, collaboration, and fair competition. Under the aegis of this action, the B20 Task Force encourages G20 nations to simplify permitting processes, promote license granting models, implement demand-side support initiatives, recalibrate universal service funds (USF) to decrease connectivity barriers and improve access for the underserved, and develop public-private partnerships to improve connectivity in underserved communities like schools, health institutions, and public service facilities.

The next recommended policy action is to address digital skills gaps across both levels and demographic groups to promote digital literacy across G20 populations and the development of a digital-ready workforce. Specifically, the Task Force recommends cooperation between G20 nations in mapping digital competencies, adopting a shared competence framework, and creating unified metrics for digital literacy.

Additionally, the Task Force recommends updating digital skills courses in universities and encouraging digital literacy skilling programs for individuals not currently pursuing education as well as entrepreneurs. Finally, the Task Force encourages the G20 member states to encourage the development of digital learning resources to extend and improve access to high-quality, affordable STEM (Science, Technology, Engineering, and Mathematics) skilling programs.

The third and final policy action under the first recommendation from the B20 Task Force on Digital Transformation is promoting the digital transformation of Micro, Small, and Medium Enterprises (MSMEs) by constructing a supportive regulatory environment, improving access to sustainable finance, and providing specialised support to MSMEs. Under this policy action item, the B20 Brasil Task Force on Digital Transformation recommends four potential initiatives that G20 nations could take to improve digital transformation in MSMEs.

The first is expanding efforts on the front of sustainable finance through programs like flexible collateral options, improving credit guarantees, and expanding the reach of Microfinance & Microcredit Institutions (MFIs) and Non-Banking Financing Companies (NBFCs) to address financing gaps. The next proposed action is leveraging digital technologies to enhance financial inclusion of MSMEs.

Third, the Task Force recommends the development of organisations on a local level to support MSMEs in their digital transformation journey along the lines of establishing knowledge hubs, developing toolkits and guides, improving training and capacity building, and networking and collaboration. Finally, the B20 Task Force recommends that the G20 provides a favourable regulatory environment to help alleviate management burdens on MSMEs. Specifically, G20 nations could develop compliance management tools, digital portals, policy that supports digital uptake, and platforms that provide greater market access.

The second key recommendation from the B20 Brasil Task Force on Digital Transformation is that the G20 should protect individuals and cultivate digital trust by synchronising cybersecurity and data protection standards, coordinating international cyber action, and promoting data free flow with trust. Under the aegis of this second recommendation, the Task Force recommends two policy actions.

The first policy action is to foster multilateral cooperation to improve global cyber action through prevention, identification, and containment initiatives, leveraging synchronised cybersecurity and cyber resilience standards. Specifically, the Task Force recommends that G20 nations should identify an NGO within each G20 member state to complement both public and private cybersecurity efforts at all levels through a global collaboration network.

Additionally, the Task Force recommends the development of global cybersecurity standards and develop a shared open-source framework. Finally, the Task Force also recommends increasing cyber forensics capacity of law enforcement, developing international legal frameworks, and bridging the global cybersecurity skills shortage through awareness campaigns and educational programs like national cyber academies and youth cyber education pathways.

The second recommended policy action is to improve progress on Data Free Flow with Trust by building and tailoring a consensus-based approach amongst G20 members to enable innovation and economic growth while building social trust globally. Specifically, the B20 Task Force on Digital Transformation recommends that the G20 establish an international institutional mechanism with the consideration of industry inputs to ensure interoperable data-sharing protocols. Next, the Task Force calls on the G20 to support developing countries in implementing robust data governance regulations aligned with the Data Free Flow with Trust principles through sharing of best practices. Moreover, the Task Force recommends that the G20 provide global businesses with tools to decrease border risk in data transfer through model contractual clauses, data marketplaces, privacy-enhancing technologies (PET), and creating a repository of cross-border data transfer regulations. Finally, the Task Force recommends to improve awareness of users on how their data is used as well as their rights and ability to secure their data.

The third and final recommendation of the B20 Brasil Task Force on Digital Transformation is a new initiative on responsibly leveraging artificial intelligence by supporting its development and adoption and collaborating to achieve a shared ambition and principles for security, sustainability, and inclusion. Under the aegis of the third recommendation, the Task Force recommends that G20 countries strengthen internal collaboration and expand frameworks grounded on a risk-based, pro-innovation approach for AI development, deployment, and regulation to keep up with the evolving AI landscape.

Read the full B20 Brasil Policy Paper on Digital Transformation here:
https://b20brasil.org/documents