AMBASSADOR SEPULVEDA'S REMARKS ON THE GLOBAL INTERNET AND LATIN AMERICA

FROM:  U.S. STATE DEPARTMENT
06/18/2015 01:08 PM EDT
Latin America, Chile, and the Global Internet
Remarks
Ambassador Daniel A. Sepulveda
Deputy Assistant Secretary and U.S. Coordinator for International Communications and Information Policy, Bureau of Economic and Business Affairs
Agelini Center of Innovation
Santiago, Chile
June 18, 2015

Thank you. I am honored to come to Chile and speak to you as an American Ambassador. It is to some degree a homecoming. This is where my parents are from, our extended family is here, and this country and its people hold a very special place in my heart.

I am here to extend the hand of friendship and to ask for your partnership in the international dialogue on how to best ensure that the Internet remains an open platform for global social and economic development for the region, the world, our children and grandchildren.

While Mexico, Brazil, Colombia, and Argentina have played an active role in the international institutions and organizations that debate Internet related issues, Chile has been relatively quiet. Yet, according to an April 2015 report of the Boston Consulting Group titled, “Which Wheels to Grease? Reducing Friction in the Internet Economy”, Chile is outperforming almost all of the other nations in Latin America in its digital strategy. It clearly has been greasing the “right” wheels. This country can and should be playing a leadership role as a champion of democratic discourse and open markets in the international debate over Internet governance.

This year, at the United Nations General Assembly in December, we will meet to review the last ten years of progress in the global digital economy and how it is contributing to global development. Chile has the industry, civil society, and governmental talent and capacity to help lead this discussion. You have a great story to tell and the world needs to hear it.

As you know, more than three billion people and trillions of devices are connected to the Internet today. That connectivity is revolutionizing how we live, work, and govern ourselves. It has shrunk the world, made more information more accessible to more people, and disrupted incumbent power in politics and business alike.

As a matter of economic and social justice, the global Internet helps bridge the gap between talent and opportunity. In much of the world, men and women in rural communities are now able to receive microloans to start a small business using only their smartphones. There are applications for women to track their health and the health of their baby while they are pregnant and for men and women to be able to identify the location of clean water.

And today, the Internet’s economic benefits are actually increasingly shifting to the developing world. It is in developing markets of Latin America, Africa, and Southeast Asia that the Internet economy is growing fastest, at a rate of 15 to 25 percent per year; compared with around 6% in developing countries. The Latin American Internet audience grew 23% in the past year and now represents 8% of the global Internet audience. Chile stands out in the region with over 66.5% of its population connected to the internet, however average penetration in Latin America still hovers around 30% and falls as low as 8% in some countries. A 10 percent increase in broadband penetration is estimated to result in a 1 to 1.5 percent increase in annual per-capita growth, so the potential for the region is huge, however, the growth and promise that we know the Internet can deliver is not a foregone conclusion. The future we desire depends on how the technology is used and how it is governed. This is why the United States considers the promotion of an open, interoperable, secure, and reliable Internet a key component of our foreign policy.

The Internet developed organically, as an experiment by academics and technologists, discovering a new way to facilitate an exchange of ideas and make new connections between people. As the Internet has evolved into the critical resource it is today, governments in particular are grappling with what in some cases boils down to an identity crisis—what is the role of government? And, how much power or control should government be able to exercise vis-à-vis other stakeholders?

The way we see it, governments around the world must make a choice: to enable the Internet’s growth or detract from it. To date, how governments make this choice and exercise it has proven inextricably linked to how they feel about freedom of expression and human rights. And where governments choose to reduce friction in the digital economy, the Boston Consulting Group study showed that compared to other similar markets, open markets experienced a real difference of 1% in GDP growth. Closed countries, those who deny their people the freedom to engage in commerce and discourse are falling behind.

Setting economics aside, the United States and Chile are both active champions of the exercise of human rights. As Secretary Kerry explained when he was in Seoul a few weeks ago, the United States particularly believes strongly in freedom of expression. We understand that we may not always agree with the views that some may choose to express and we know that some may abuse this right in order to harm others, but we believe that the benefits outweigh these challenges. Some governments believe the opposite and look for any excuse to silence their critics and have used the Internet to control what people read, see, write, and say.

We have a shared responsibility to be good stewards of the Internet and must not be complacent in pursuing our vision of the future. I see three critical issues ahead on which Chile and the United States can and should work together.

The first issue is access. The Internet can only be an engine for growth if it is available. Roughly three out of every five people in the world remain without Internet access, and in the poorest countries that figure can top 95 percent. That’s why two years ago the United States helped to create the Alliance for Affordable Internet, a broad coalition of governments, industry, and civil society that works with policy makers to expand access while keeping prices low. It is also why Secretary Kerry announced that the State Department will soon launch a new initiative, in partnership with partner countries, development banks, engineers, and industry leaders to increase connectivity around the world. At the Summit of the Americas that took place in April in Panama, President Obama announced our intention to work with partners to increase the adoption of fixed and mobile broadband, and the deployment of broadband infrastructure as necessary.

The second issue is governance. The Internet has flourished because of the bottom-up, consensus-based process that allows all stakeholders, including the private sector, civil society, academics, engineers and governments, to participate in its governance. This multistakeholder approach has served us well and is visible in many institutions that keep the Internet operating in a safe, secure, and reliable manner. There are those who claim this system is broken and should be replaced by a more centralized, top-down approach, where governments and inter-governmental institutions have more control. We believe that such claims are misguided and untrue, and would actually stunt the growth of the Internet and slow its delivery to the rest of the world. We are working steadfastly with our international partners and global stakeholders to preserve the multistakeholder approach wherever it is challenged but we need your help.

And the third issue is stability. Cyberattacks are a real and persistent threat for all states. At the policy level, we believe that our best defense is to promote international cyber stability. What that means is, we are seeking broad consensus on what constitutes responsible and irresponsible behavior in cyberspace, with the goal of creating a climate in which all states are able to enjoy the benefits of cyberspace.

In the United Nations, we have affirmed that the basic rules of international law apply in cyberspace, but we are also working on some additional principles that are gaining traction. First, no country should conduct or knowingly support online activity that intentionally damages or impedes the use of another country’s critical infrastructure. Second, no country should seek either to prevent emergency teams from responding to a cybersecurity incident, or allow its own teams to cause harm. Third, no country should conduct or support cyber-enabled theft of intellectual property, trade secrets, or other confidential business information for commercial gain. Fourth, every country should mitigate malicious cyber activity emanating from its soil. And fifth, every country should do what it can to help states that are victimized by a cyber-attack.

The Internet has served us well as a platform to provide anyone connected to it with an opportunity to contribute to political, economic, and social discourse, and we believe that is a very good and important thing, worthy of preserving. It is the kind of freedom that this country fought for and won. And that is why it is so important that you engage this global debate.

The issues raised at the global gatherings of leaders related to the Internet transcend any one policy area and include questions of ethics, the role of government in society, commercial issues, and democracy. Chile’s voice is critical in this conversation and to ensuring that this revolutionary tool is available for the Chilean children and grandchildren of my uncles and aunts to break down barriers in any field they wish to engage.

Thank you. I appreciate your time and look forward to answering any questions you might have.

UNDER SECRETARY NOVELLI MAKES REMARKS ON INTERNET GOVERNANCE

FROM:  U.S. STATE DEPARTMENT 

Internet Governance Forum Opening Ceremony

Remarks

Catherine A. Novelli

Under Secretary for Economic Growth, Energy, and the Environment 

Istanbul, Turkey

September 2, 2014

Good afternoon. It is a great pleasure to be here today. I am grateful to our gracious Turkish hosts, the IGF Secretariat, and the Multistakeholder Advisory Group for organizing this year’s Internet Governance Forum.

For centuries, Istanbul connected continents, people and cultures through ancient networks of trading routes and cultural exchanges. This week, I am pleased that we are here to discuss the future of our newest “network of networks,” the Internet.

This year, the international community celebrates the 45th anniversary of the first Internet log-on and the 25th birthday of the Worldwide Web. In this short span of time, the Internet has proven to be a revolutionary force for economic growth, but also a fragile one that all of us must work to preserve.

Across the world, the Internet bridges the gap between talent and opportunity. For example, three Nigerian university students have already helped tens of thousands of Africans secure jobs by creating a job search website called “Jobberman.com.” As West Africa’s most popular online career resource, Jobberman connects talented individuals with job opportunities.

Today, the Internet’s economic benefits are increasingly shifting to the developing world. In fact, in Turkey, SMEs that use the web experienced revenue growth 22 percent higher than those that did not. Overall, the Internet economy contributes 5 to 9 percent to total economic growth in developed markets; and in developing markets, the Internet economy is growing at 15 to 25 percent per year.

The Internet’s enormous impact on economic growth makes it critical that we adopt policies and practices to ensure its future viability. We have a shared responsibility to be good stewards of the internet. I believe complacency is one of the biggest threats to the internet as we know it. I see three critical challenges ahead.

First is broadband access. As a community, our shared challenge is to promote global policies and practices that increase everyone’s access to broadband, particularly in the developing world.

Second is ensuring an open internet. We must strengthen the ability of citizens to access information on the Internet regardless of where they live so that people can freely obtain information and express their opinions.

Third is misuse of the internet, such as cyber-attacks, identity and Intellectual Property theft. We have many tools to address misuse, including technology. However, we must use these tools with precision, so that they address the misuse while preserving internet openness to the greatest degree possible.

Because of these formidable challenges, there are some that advocate for replacing the multi-stakeholder system with centralized intergovernmental regulation. Ideas range from governments imposing international taxes on the transmission of content; mandates on how information has to be routed or stored; and regulated pricing between networks.

This type of regulation would only result in a cumbersome and more expensive Internet that would not be capable of driving positive change in education, health care and the overall economy. Think about the consequences of taxing every Skype call, or regulating the types of information that flow across the Internet through multilateral governmental mandates. This could cripple the user experience and greatly diminish the Internet’s effectiveness as an engine of growth.

We must continue to demonstrate to the world that only the multi-stakeholder approach, that brings together government policy-makers, businesses, NGOs and Internet experts on an equal footing, can effectively overcome today’s challenges and preserve the Internet’s future.

The first step for the continued success of the IGF is to support its long-term sustainability beyond 2015. The United States strongly supports the continuation of the IGF, and I encourage all participants here to join us in supporting extension of the IGF’s mandate at the UN General Assembly this fall.

In conclusion, as I mentioned at the outset, I urge all stakeholders to work together to fulfill our shared responsibility to preserve the Internet’s future.

I am excited to engage with all of you to ensure that the Internet remains vibrant and continues to be a conduit to better the lives of people worldwide.

U.S. AND JAPAN ISSUE JOINT STATEMENT ON THE INTERNET ECONOMY

The following excerpt is from the Department of State 
U.S.-Japan Policy Cooperation Dialogue on the Internet Economy Third Director General-Level Meeting
Media Note Office of the Spokesperson Washington, DC
March 23, 2012
Following is the text of a joint statement issued by the United States of America and Japan at the conclusion of the United States - Japan Policy Cooperation Dialogue on the Internet Economy.
Begin Text:
On March 22 and 23, 2012, the third Director General-level meeting of the U.S.-Japan Policy Cooperation Dialogue on the Internet Economy was held in Tokyo. Hajime Tonegawa, Director General of the Global ICT Strategy Bureau, Ministry of Internal Affairs and Communications (MIC), and officials representing MIC, the IT Policy Office, the National Information Security Center, the Consumer Affairs Agency, the Ministry of Foreign Affairs, and the Ministry of Economy, Trade and Industry participated in the dialogue from Japan. Ambassador Philip Verveer and officials representing the U.S. Department of State, the Federal Communications Commission, the U.S. Department of Commerce’s National Institute of Standards and Technology, and the U.S. Department of Homeland Security participated in the dialogue from the United States. In addition, representatives from both U.S. and Japanese industry participated in some of the discussions.

Recognizing that the Internet is transforming the global economy and improving the lives of people around the world, participants from both countries concurred that close cooperation and commitment to shared values is essential. During the dialogue, participants exchanged views on important topics in Internet and information and communications technology (ICT) policy, emphasizing the need for openness, innovation, and increased opportunities for U.S. and Japanese industry.
On March 22, industry representatives from both countries submitted a “U.S.-Japan Business Dialogue on the Internet Economy Joint Statement,” which addressed the need for:
(i) Coordination on Internet policy issues;
(ii) Promotion of cloud computing services;
(iii) Continued collaboration on cyber security;
(iv) Promotion of ICT in the public sector;
(v) Coordination on disaster response;
(vi) Internet Protocol version 6 (IPv6) deployment; and
(vii) Cooperation on research development, training, and promotion of digital literacy.
Taking account of the “U.S.-Japan Business Dialogue on the Internet Economy Joint Statement,” government participants from both countries emphasized the need to ensure the free flow of information in order to foster innovation and stimulate economic growth. Participants discussed the following topics:

(1) Internet Policy Issues
(a) Participants reaffirmed the importance of the principles mentioned in the joint press statement of the 2nd Director General-level meeting last year, including:
Preserving the open and interoperable nature of the global Internet, which underpins the global free flow of data; and
Protecting Internet freedom, which includes the freedoms of expression, association, and assembly online.
To advance these principles, participants recognized the importance of:
Coordination on Internet policy issues, including Internet governance, protecting personal information, and protecting children online;
Cooperation on Internet policy issues at international and multilateral fora; and
Encouraging other countries to develop trade principles consistent with the “U.S.-Japan trade principles for ICT services,” finalized in January 2012.
(b) Recognizing the concerns of users about the proper use of personal information by ICT service providers, participants shared the view that service providers should be accountable for protecting users’ personal information, regardless of national boundaries.
Taking note that the European Union (EU) has proposed a new privacy framework, participants emphasized the importance of the Asia-Pacific Economic Cooperation (APEC) Data Privacy Subgroup, which plans to pursue international engagement, including with the EU, to promote the interoperability of regional approaches to data protection.

(2) Development of a U.S.-Japan Cloud Computing Working Group
Participants concurred that they will develop a U.S.-Japan Cloud Computing Working Group at the Director level, which will convene around fall 2012 after identifying key policy issues based on views expressed by U.S. and Japanese industry.
Participants recognized that the adoption of cloud computing services will expand business opportunities and foster economic growth. In addition, participants concurred that cloud computing technology has specific advantages in times of disaster, providing a key infrastructure to help us respond to emergencies and restore our lives.

(3) Continued Cyber Security Cooperation for Commercial Networks
Participants acknowledged the importance of improving cyber security measures, and recognized that international cooperation is imperative to addressing the issue, since cyber incidents cross our borders. Participants concurred that the U.S. and Japanese governments, private sector partners, and research institutions in the United States and Japan, should share information relating to cyber incidents and accelerate collaborative research and development in order to prevent and respond quickly to cyber incidents that may occur. In addition, participants acknowledged their commitment to greater bilateral and international cyber security collaboration.

(4) Promotion of ICT in the Public Sector
Participants recognized the importance of sharing best practices for the use of ICT – including the use of cloud computing technology – in the field of public administration, as well as public-private collaboration for open government.

(5) IPv6 Deployment
Participants recognized the importance of sharing the current status of IPv6 deployment and best practices in both countries, given that companies are beginning to deploy IPv6-based services and products. Participants concurred that they should continue to share best practices and status updates on IPv6 deployment.

(6) Cooperation on Research Development and Training
Participants concurred that they will continue to conduct joint research and development, and exchange personnel, in order to promote the research and development of the New Generation Network (NWGN) / Future Internet.

 (7) Protecting Children Online
Participants recognized the importance of protecting children online. In particular, participants concurred that public-private initiatives, voluntary industry-led efforts, and consumer and business education, are all important complements to law enforcement. Working together, these elements represent the best approach to providing a safe Internet environment for young people. Participants also concurred that further coordination would be beneficial.

(8) Mobile Broadband and Spectrum Auctions
Participants provided an update of their policies on frequency allocation for mobile broadband services and spectrum auctions, and acknowledged the importance of further information sharing.