A global order as technology’s much needed pole star

Source– The post is based on the article “A global order as technology’s much needed pole star” published in “The Hindu” on 7th June 2023.

Syllabus: GS2- Polity

Relevance– Issues related to impact of technology on global polity

News- Since the 2000s, the rapid scale and pace of development of technology have radically transformed our societies and daily lives.

How is the notion of nation-state changing?

As per political theorists, a nation-state is a territorially-bounded sovereign polity.

There are now several threats occurring across the borders of nation-states, like cyber-attacks. It has a ripple effect on the physical boundaries. It can challenge their socio-economic and political existence.

Web3, peer-to-peer networks and blockchains has allowed state and non-state actors to influence areas such as trade, commerce, health and education.

Geography-based rules are no longer easily enforceable because of the declining significance of geographical borders in the era of high technology. Any form of virtual activity is not confined to the borders of a country. Data travels across the world at high speed.

Such activities are beyond the laws of a nation-state. It is extremely difficult in the absence of a globally accepted norm, to enforce the law in that geography. It is difficult to collect evidence without cooperation from other geographies.

It is also difficult to establish applicability of any country-specific legislation due to the universal nature of technology.

The emergence of newer technologies has exposed the incapacity and inability of the government of the nation-state to administer and regulate these technologies.

Multinational corporations, NGOs and supranational organisations are not limited to nation-states. These entities have transcended physical boundaries to collaborate with the rest of the world.

How has the borderless nature of technology challenged the traditionally accepted concepts of sovereignty, jurisdiction?

On the economic side, five largest American tech companies have a valuation of more than $4,100 billion. These have surpassed Germany’s GDP in terms of valuation. One of the most important levers of these companies is data and their use.

Data has become the most important raw material of our times. Only a handful of companies now hold economic power and influence over it. Their huge size allows them to increase the amount of information analysed by them to influence our activities.

What is the way forward to deal with the challenges presented by modern technology?

There is a need for a principle-based global order for technology. It would help in dealing with enforceability challenges in the adoption and diffusion of technology.

It can provide guidance to emerging economies to deal with the evolving definitions of their sovereignty.

There is a need for a data-sharing ecosystem based on privacy, free flow of data. A global regulatory system trusted by all countries; particularly developing countries is required.

India needs a data transfer and data privacy law. But these laws have limitations in the absence of a global principle-based regulation architecture trusted by all countries.

The finance minister has emphasized the need to have a globally coordinated approach to the regulation of digital assets such as crypto-currencies.

For India, G-20 is the perfect opportunity to take leadership as it has done earlier in green initiatives such as the International Solar Alliance or the Coalition for Disaster Resilient Infrastructure.