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1. Mitigating Global Fragmentation in Digital Trade Governance: A Case Study

Author:
Douglas Lippoldt
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Digital trade is growing rapidly, and regulators are trying to keep up. Concerns about privacy, consumer protection and national security demand regulatory attention, but too much regulation risks stifling digital trade. Current-generation trade agreements need to find the right balance between regulatory and liberal approaches to e-commerce. This paper looks at how five leading digital economies (Canada, the European Union, Japan, Singapore and the United States) are using regional trade agreements to address concerns while enhancing trade.
Topic:
Economics, International Cooperation, International Trade and Finance, Governance, and Digitalization
Political Geography:
Global Focus

2. Enforcing Smart Legal Contracts: Prospects and Challenges

Author:
Marsha Cadogan
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Blockchain technology can autonomously perform transactions across various industries and sectors without human involvement, revolutionizing how people do business. These transactions are performed through smart contracts, which consist of coded commands on the blockchain. This paper looks at how to enforce these autonomous agreements using blockchain online terms of use, focusing on common law jurisdictions, specifically Canada. Some of the advantages of buying and selling on the blockchain include reduced business-to-business transaction costs, automated business-to-consumer transactions and the ability to perform traditional services in new ways.
Topic:
Science and Technology, Blockchain, Emerging Technology, and Legal Sector
Political Geography:
Canada and North America

3. Building Trust in AI: A Landscape Analysis of Government AI Programs

Author:
Susan Ariel Aaronson
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
As countries around the world expand their use of artificial intelligence (AI), the Organisation for Economic Co-operation and Development (OECD) has developed the most comprehensive website on AI policy, the OECD.AI Policy Observatory. Although the website covers public policies on AI, the author of this paper found that many governments failed to evaluate or report on their AI initiatives. This lack of reporting is a missed opportunity for policy makers to learn from their programs (the author found that less than one percent of the programs listed on the OECD.AI website had been evaluated). In addition, the author found discrepancies between what governments said they were doing on the OECD.AI website and what they reported on their own websites. In some cases, there was no evidence of government actions; in other cases, links to government sites did not work. Evaluations of AI policies are important because they help governments demonstrate how they are building trust in both AI and AI governance and that policy makers are accountable to their fellow citizens.
Topic:
Science and Technology, Artificial Intelligence, Trust, and Trust-building
Political Geography:
Global Focus

4. Could a Global “Wicked Problems Agency” Incentivize Data Sharing?

Author:
Susan Ariel Aaronson
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Global data sharing could help solve “wicked” problems (problems such as climate change, terrorism and global poverty that no one knows how to solve without creating further problems). There is no one or best way to address wicked problems because they have many different causes and manifest in different contexts. By mixing vast troves of data, policy makers and researchers may find new insights and strategies to address these complex problems. National and international government agencies and large corporations generally control the use of such data, and the world has made little progress in encouraging cross-sectoral and international data sharing. This paper proposes a new international cloud-based organization, the "Wicked Problems Agency," to catalyze both data sharing and data analysis in the interest of mitigating wicked problems. This organization would work to prod societal entities — firms, individuals, civil society groups and governments — to share and analyze various types of data. The Wicked Problems Agency could provide a practical example of how data sharing can yield both economic and public good benefits.
Topic:
International Cooperation, Governance, Data, and Public-Private Partnership
Political Geography:
Global Focus

5. An Economic Mirage: How Canadian Universities Impact Freedom to Operate

Author:
James Hinton, Mardi Witzel, and Joanna Wajda
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Canada’s universities drive research and innovation, but when publicly funded institutions partner with foreign firms and countries, who is the biggest beneficiary? Not Canada or the Canadian economy. According to the authors of this paper, foreign entities that invest in Canadian research often take their intellectual property (IP) (and the money it generates) out of the country, leaving Canadian taxpayers holding the bill, unable to benefit from the economic return on their investment. This paper looks at the U15, a collective of some of Canada’s most research-intensive universities, accounting for 79 percent of all competitively allocated research funding in Canada and 83 percent of all contracted private sector research in Canada. With a focus on research outcomes, specifically IP, this paper examines patent data; IP ownership; and the impact on freedom to operate, an indicator of Canadian firms’ ability to commercialize their technology, to maximize Canada’s return on investment.
Topic:
Economics, Education, Higher Education, and Freedom
Political Geography:
Canada and North America

6. Regulating the International Digital Economy, with Trade and Innovation in Mind

Author:
Douglas Lippoldt
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The international digital economy is growing rapidly, and the fragmented governance framework is struggling to keep pace. Global entities such as the World Trade Organization and regional trade agreements offer a patchwork approach to governance. This paper illustrates the importance of governance in relation to private-sector innovation and recommends next steps to enhance governance, close gaps and promote further innovation. Better definition and international alignment of the framework for governance of digital trade and data could lead to greater privacy, trust and security.
Topic:
International Cooperation, International Trade and Finance, Regulation, Digital Economy, and Innovation
Political Geography:
Global Focus

7. A Future Built on Data: Data Strategies, Competitive Advantage and Trust

Author:
Susal Ariel Aarsonson
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
In the twenty-first century, data became the subject of national strategy. This paper examines these visions and strategies to better understand what policy makers hope to achieve. Data is different from other inputs: it is plentiful, easy to use and can be utilized and shared by many different people without being used up. Moreover, data can be simultaneously a commercial asset and a public good. Various types of data can be analyzed to create new products and services or to mitigate complex “wicked” problems that transcend generations and nations (a public good function). However, an economy built on data analysis also brings problems — firms and governments can manipulate or misuse personal data, and in so doing undermine human autonomy and human rights. Given the complicated nature of data and its various types (for example, personal, proprietary, public, and so on), a growing number of governments have decided to outline how they see data’s role in the economy and polity. While it is too early to evaluate the effectiveness of these strategies, policy makers increasingly recognize that if they want to build their country’s future on data, they must also focus on trust.
Topic:
Economics, Governance, Data, and Competition
Political Geography:
Global Focus

8. Rudiments of a Space Security Policy Framework

Author:
Richard J. Chasdi
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The commercial space industry is taking off, with a growing number of private companies sending people into orbit. Along with this growth in demand from businesses and consumers is the need for more space security and policy approaches to address the potential risks of space exploration. The Moon is currently the main target of future space missions because of its resources and its strategic location to support missions to Mars. International law can help mitigate threats, such as resource depletion on the Moon, which could lead to conflicts among stakeholders on Earth.
Topic:
Security, Science and Technology, Space, and Innovation
Political Geography:
Global Focus

9. Merger Policy for a Dynamic and Digital Canadian Economy

Author:
Keldon Bester
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
As an element of competition and antitrust law frameworks, merger policy plays an important role in preventing acquisitions that would otherwise allow incumbent firms to extinguish competitive threats and entrench their dominance. But evidence suggests that current approaches to merger law in Canada and abroad have underestimated the harms these transactions can pose to competition and overestimated the effectiveness of the remedies intended to mitigate those harms. Although relevant across the Canadian economy, this permissive treatment of mergers is particularly pronounced in digital markets, where platform business models, the importance of potential competitors and the role of intangible assets such as data as a barrier to entry test the assumptions underlying the country’s merger law. Canada’s current law and jurisprudence mean the Competition Bureau, Canada’s sole competition authority, is limited in its ability to detect potentially harmful transactions, faces material barriers to intervening and fully remedying the harms of those transactions, and is unable to assess the outcome of previous action or inaction. This paper provides recommendations for Canada to ensure its merger law is calibrated for a modern economy.
Topic:
Economics, Regulation, Digital Economy, and Digitalization
Political Geography:
Canada and North America

10. A Digital Loonie among Many Digital Currencies: Prospects and Outlook

Author:
Pierre L. Siklos
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Global interest in digitalization is growing in response to the COVID-19 pandemic and driving central banks to introduce retail central bank digital currencies (CBDCs). The successful rollout of retail CBDCs will depend on each country’s institutional capacity and the scope of international cooperation and regulation. Retail CBDCs are unlikely to replace domestic currencies but instead complement notes and coins in circulation, offering greater convenience and lower transactions costs.
Topic:
Economics, Science and Technology, Digital Economy, Currency, and Digitalization
Political Geography:
Global Focus

11. The First Space-Cyber War and the Need for New Regimes and Policies

Author:
Eytan Tepper
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
Many dubbed the Gulf War of 1991 the “first space war” due to the US Armed Forces’ extensive use of satellites. The cyberwar in Ukraine, although it is mostly playing out in the shadows, may be remembered as the first space-cyber war. This policy brief makes the case that states should adopt national policies to defend against threats to space-based assets and applications, such as communications satellites, that are both vital to national security and economic security and increasingly vulnerable to cyberattacks. It is time to explore and identify principles for responsible space-cyber behaviour that would represent a broad multilateral consensus. Identifying these principles may not prevent space-cyber hostilities but could provide “rules of the game.” States would also benefit from encouraging a space-cyber security industry that, beyond protecting against space-cyber threats, has the potential to be a significant growth engine.
Topic:
Security, Infrastructure, Cybersecurity, Space, and Cyberspace
Political Geography:
Global Focus

12. A Two-Track Approach for Trustworthy AI

Author:
Michel Girard
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
Standards and certification programs are developed to support new trustworthy artificial intelligence (AI) legislation. Recent developments point to the emergence of a two-track approach. One track would focus on the certification of AI applications embedded in tangible products using objective criteria through established conformity assessment bodies. Regarding AI interacting with humans and used in delivering services, there is a need to create a new track. This track is needed to verify and validate compliance against subjective criteria, values and ethics, seen by many as an integral part of what constitutes trustworthy AI. The practice of “assurance as a service” can be adapted to verify and validate conformance to upcoming trustworthy AI standards. This policy brief provides an update on key legislative and policy developments framing trustworthy AI. It sketches possible approaches for the certification, verification and validation of AI embedded in products and in services and looks at recent proposals regarding the creation of a new chartered profession to deliver assurance services to achieve trustworthy AI.
Topic:
Science and Technology, Regulation, Artificial Intelligence, Emerging Technology, and Trust
Political Geography:
Global Focus

13. Lending to Defaulters: The IMF Updates Its Lending into Arrears Policy

Author:
Gregory Makoff
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
The International Monetary Fund’s (IMF’s) “lending into arrears” policy outlines the criteria used by the IMF in deciding whether to loan to a country in default. This policy brief focuses on one of the conditions a country must meet when seeking debt relief from the IMF: it must engage in good faith negotiations with its creditors (known as the good faith criterion). The country must also implement significant financial reforms and provide assurances that it will be able to meet its financial obligations. This policy brief looks at the history of the lending into arrears policy, the controversy surrounding its use during Argentina’s 2005 debt restructuring and the May 2022 update to the policy.
Topic:
Economics, International Cooperation, Finance, and IMF
Political Geography:
Argentina and South America

14. Retail Central Bank Digital Currency: Has Its Time Come?

Author:
Pierre L. Siklos
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
As central banks around the world prepare to launch central bank digital currencies (CBDCs), this paper looks at issues surrounding a retail version of CBDCs that would complement notes and coins for consumers. To build the public’s trust in this type of digital currency, concerns such as loss of privacy and security of financial transactions must first be addressed. In addition to these concerns, CBDCs carry the potential risks of overburdening central banks and disrupting cross-border transactions. These and other challenges can be overcome by ensuring the right regulatory and supervisory measures are in place before CBDCs take hold.
Topic:
Regulation, Finance, Central Bank, Banking, and Digital Currency
Political Geography:
Global Focus

15. The Impact of Artificial Intelligence on Military Defence and Security

Author:
Daniel Araya and Meg King
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The twenty-first century is now being shaped by a multipolar system characterized by techno-nationalism and a post-Bretton Woods order. In the face of a rapidly evolving digital era, international cooperation will be critical to ensuring peace and security. Information sharing, expert conferences and multilateral dialogue can help the world’s nation-states and their militaries develop a better understanding of one another’s capabilities and intentions. As a global middle power, Canada could be a major partner in driving this effort. This paper explores the development of military-specific capabilities in the context of artificial intelligence (AI) and machine learning. Building on Canadian defence policy, the paper outlines the military applications of AI and the resources needed to manage next-generation military operations, including multilateral engagement and technology governance.
Topic:
Security, Defense Policy, Military Strategy, and Artificial Intelligence
Political Geography:
Canada and North America

16. The Digital Silk Road and China’s Influence on Standard Setting

Author:
Alex He
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
China is striving to become a leader in international standard setting, and the Digital Silk Road, part of China’s Belt and Road Initiative to expand its global infrastructure and markets, is key to realizing this goal. Both roads depend on standard connectivity, fuelled by Chinese private companies that are the driving force behind China’s growing role as a leader in technology development and shaping standards in both domestic and global markets. However, China faces strong competition to gain more influence in international standard-setting bodies, which are dominated by the European Union and the United States.
Topic:
Infrastructure, Digital Economy, Trade, Digital Culture, Silk Road, and Digitalization
Political Geography:
China, Europe, Asia, North America, and United States of America

17. Next-Generation Technology and Electoral Democracy: Understanding the Changing Environment

Author:
Samantha Bradshaw, Kailee Hilt, Eric Jardine, Florian Kerschbaum, Ulrike Klinger, Michael Pal, Aaron Shull, and Wesley Wark
Publication Date:
03-2022
Content Type:
Special Report
Institution:
Centre for International Governance Innovation
Abstract:
Democracies around the world are facing growing threats to their electoral systems in the digital age. Foreign interference in the form of dis- and misinformation has already influenced the results of democratic elections and altered the course of history. This special report, the result of a research project conducted in partnership with the Konrad-Adenauer-Stiftung (KAS) Canada, examines these cyberthreats from a Canadian and German perspective. Both Canada and Germany share common goals centred around protecting human rights, democracy and the rule of law, and international peace and security. Using case studies from experts in fields such as computer science, law and public policy, the special report offers recommendations to guide policy makers and stakeholders on how to protect elections from next-generation technologies and the threats they pose to democracy.
Topic:
Environment, Science and Technology, Elections, Democracy, and Emerging Technology
Political Geography:
Europe, Canada, Germany, and North America

18. The Digital Economy Partnership Agreement: Should Canada Join?

Author:
Dan Ciuriak and Robert Fay
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
The Digital Economy Partnership Agreement (DEPA) provides the most comprehensive template yet for a regional trade agreement tailored for the digitally transformed economy. The DEPA lays groundwork for discussions on critical areas that go beyond the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. This policy brief makes the case that joining the DEPA early would allow Canada to develop it so that it meets small, open economies’ needs and so that new provisions meet the values that Canada holds, and recommends areas for attention and collaboration with like-minded countries.
Topic:
International Cooperation, International Trade and Finance, Intellectual Property/Copyright, and Digital Economy
Political Geography:
Canada and North America

19. Third Party Record Exemptions in Canada’s Access to Information Act

Author:
Matt Malone
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
Artificial intelligence (AI) and automated decision making (ADM) used by and on behalf of the Government of Canada pose significant challenges to Canada’s Access to Information Act (ATIA). While the ATIA’s goal is to enhance accountability and transparency through the disclosure of records under the control of government, exemptions in the ATIA for third party records such as trade secrets make meaningful access difficult when it comes to AI and ADM. Several departments working at the epicentre of AI and ADM policy handle requests made to them through the ATIA by routinely invoking such exemptions. Citizens’ entitlements to transparency and accountability in such contexts are increasingly clashing with commercial actors’ desire to avoid or block disclosure of records.
Topic:
Governance, Privacy, Transparency, and Artificial Intelligence
Political Geography:
Canada and North America

20. China’s Experience in Building a Venture Capital Sector: Four Lessons for Policy Makers

Author:
Anton Malkin
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
China’s journey from being a technological backwater to a technological superpower was fuelled, in part, by the success of its venture capital (VC) sector in supporting start-ups. Its VC market is now the second largest in the world after that of the United States. As of 2019, China produced more “unicorns” (privately held, rapidly growing, early-stage technology companies valued at US$1 billion or more) than the United States. Policy makers can learn the following lessons from China’s growing VC sector: China’s use of labour market incentives promotes reverse migration of highly educated expatriates; weak intellectual property protection is not necessarily a deterrent to VC funding, especially in developing countries; government finance, when used appropriately, can help direct VC toward promising technology firms; and an emerging market does not need to wait until it becomes financially developed in order to create funding channels to support start-ups and entrepreneurship.
Topic:
Science and Technology, Hegemony, Finance, and Venture Capital
Political Geography:
China and Asia