infrastructure economics |DI PLO M AT I CA nectivity is still lacking. The Yangtze River, China’s equivalent of the Mississippi, plays a crucial role in uniting China’s urban and rural communities, an imperative for the central government. To ensure its social and economic stability down the road, Beijing will have to turn its attention to developing and connecting the country’s interior. Meanwhile, Southeast Asian countries, from Vietnam to the Philippines, are following in China’s footsteps on the path to economic growth. These countries can take advantage of their small size, populous urban centres and deep-water ports, as well as sustained global demand, to increase their export revenue without fully developing internal transportation infrastructure. The window of opportunity is closing, however, giving way to another phase in economic and infrastructure development. A new era
Today, a growing portion of the economy is based on services and intellectual property, not goods. This sector, which includes digitization and automation, requires special infrastructure. Instead of roadways and waterways, software, for instance, relies on high-speed servers and internet
connections for transport. As software and other intellectual property occupy a larger share of the global economy, the infrastructure necessary to process data will become more important, especially in developed countries. Traditional goods and infrastructure will not become obsolete, obviously. But for countries such as India — which has a large services sector, but still struggles with infrastructural integration, quality and efficiency — this burgeoning industry could be a boon. In the meantime, countries will keep making smaller adjustments to infrastructure at specific points in the supply chain. Consumers are putting more and more emphasis on fast delivery — something water-based transportation methods have never been able to provide — and the prevalence of e-commerce and on-demand shipping will necessitate changes to the last leg of the supply chain. To ensure that goods can be delivered quickly and efficiently, distribution centres will need to invest in technological improvements such as automation to help limit congestion, which remains a problem even in many developed countries. Already, new technologies such as drones are being considered to enhance or replace parts of existing infrastructure.
South Korea, for example, has proposed “drone highways” in the air to meet the growing demand for ever-faster deliveries. In addition to physical infrastructure, technological leadership, combined with open and flexible policies, will be equally essential for this kind of development. Though the means have changed over time, infrastructure — whether water, rail, road or electronic — remains a critical component of a country’s economic success, one that some nations come by more naturally than others. As the global economy continues its evolution from the current era of globalization to one of increased automation and digitization, new developments will supplement existing infrastructure, hindering or facilitating countries in their efforts at economic growth. Even the United States, notwithstanding its geographic advantages, will have to adapt to the new economy to maintain its position as a world leader. Geography may be a constant, but the demands and advantages of infrastructure are not. ”Building a More Efficient World” is republished with permission of Stratfor, a geopolitical intelligence platform based in Austin, Texas.
CIGI PRESS COMING OCTOBER 2016 ADVANCING POLICY IDEAS AND DEBATE Look Who’s Watching
Surveillance, Treachery and Trust Online Fen Osler Hampson and Eric Jardine Edward Snowden’s revelations that the US National Security Agency and other government agencies are spying on Internet users and on other governments confirmed that the Internet is increasingly being used to gather intelligence and personal information. The proliferation of cybercrime, the sale of users’ data without their knowledge and the surveillance of citizens through connected devices are all rapidly eroding the confidence users have in the Internet. To meet the Internet’s full potential, its users need to trust that the Internet works reliably while also being secure, private and safe. When trust in the Internet wanes, users begin to alter their online behaviour. A combination of illustrative anecdotal evidence and analysis of new survey data, Look Who’s Watching clearly demonstrates why trust matters, how it is being eroded and how, with care and deliberate policy action, the essential glue of the Internet — trust — can be restored. October 2016 978-1-928096-19-1 | hardcover
978-1-928096-20-7 | ebook
The authors have produced a clear, timely and essential book about the importance of trust as an engine for the Internet. We must foster that trust if the global Internet is to continue to flourish. — Michael Chertoff, Executive Chairman and Co-Founder, Chertoff Group, and former secretary of the US Department of Homeland Security
Centre for International Governance Innovation CIGI Press books are distributed by McGill-Queen’s University Press (mqup.ca) and can be found in better bookstores and through online book retailers. diplomat and international canada
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