Why the Rest of the World Can’t Free Ride on Europe’s GDPR Rules
The digital industry is riding an important—and turbulent—wave of change right now. As Facebook and others grapple with tough questions about data privacy and security practices, trust in social platforms appears to be plummeting. Companies and analysts are scrambling to figure out how to make privacy rules clear, protect user data, and evolve the business models that made them successful in the first place.
Read the full piece from Dean Chakravorti in Harvard Business Review
Britain’s Digital Advantage
No wonder then that there is much anxiety among Brexit-watchers about the UK making a clean break and rejecting the ‘four freedoms’ that EU members enjoy − free movement of people, goods, capital and services. I would argue that there is a fifth freedom that negotiators ought to keep in their sights, one that may hold the key to re-balancing the terms of Brexit. This freedom has to do with the free movement of data.
Data matters because it is the fuel − and exhaust − of a critical part of the overall economy: the digital economy.
When one considers the digital economies of the UK and that of the EU, the latter would be losing a genuine star if barriers to UK-EU data flows were to be erected.
Read the full piece from Dean Chakravorti on the Chatham House website
by Stratos Kamenis (MALD 2017)
The massive exodus of the Syrian people has led to a refugee crisis in Europe. Hundreds of thousands of refugees have made the long journey across Turkey and then to Greece, putting their lives in danger in the hope of finding a better future in Europe. In 2015, more than a million asylum-seekers took refuge in Europe, with another 500,000 following in the first half of 2016. A deal was struck between the European Union and Turkey in March aimed at limiting the number of migrants and regulating migration by establishing EU-administered camps – the so-called hotspots – on the Greek islands of Lesvos, Chios, Samos, and Kos, from where the majority of migrants enter Europe.
Refugee boats arriving to the shores of Lesvos (August 2015)
The island of Lesvos found itself under the spotlight of international media as the central entry point to Europe. Some 600,000 refugees and migrants have passed through the island over the past 19 months. After a year of coping with the crisis without aid from international organizations, the impact on Lesvos’ 85,000 permanent residents has been significant. To their credit, the locals have been gracious hosts. Their sense of tolerance and solidarity has been praised by major world figures including Pope Francis, Queen Rania of Jordan, actress Angelina Jolie and former UN Secretary General Ban Ki Moon. Their humanitarian efforts have earned them a nomination for the Nobel Peace Prize.
Brexit Could Deepen Europe’s Digital Recession
Brexit, as the British referendum to exit the EU is widely called, has caused turmoil in politics and stocks and head-shaking among the UK’s partners. All of this, of course, comes on the heels of many overlapping crises afflicting Europe.
In addition to the ones regularly in the news, I have argued earlier in HBR that there is a fundamental crisis unfolding over the longer term: the continent is suffering from a “digital recession” – a loss of momentum in their evolution toward a digital economy. Of the 50 countries we studied using a Digital Evolution Index we created, 15 European countries have been losing digital momentum since 2008 and EU countries occupy the bottom 9 spots in our ranking of digital momentum .
With the UK at 34 out of 50, it is worth asking: what is the impact of the Brexit referendum on this already dismal state of affairs?
Read the full op-ed from Dean Chakravorti in Harvard Business Review
Brexiters are making a dangerous mistake in their argument for leaving the EU
An essential claim of UK campaigners who want to leave the European Union is that the country could negotiate the same access to European markets from the outside as it now has from the inside.
This is a dangerous folly.
Read the full piece from Prof. Bhide at Quartz
Where is the digital economy is moving fastest? Which countries are poised for rapid changes? Where is digital progress slow or stalled?
Dean Bhaskar Chakravorti helped provide the answers to these questions and many more as part of his webinar with the Harvard Business Review. The one-hour session, moderated by HBR editor Angelia Herrin, built on our cutting edge research into the digital economy with the Digital Evolution Index, previously featured in HBR with further coverage on Europe’s digital recession and the need for benchmarking in digital growth.
The executive summary of the webinar can also be found online.
If the above video does not work, you can view it on the HBR wesite.
by Brenda Santoro and Ahmed Dermish
with the support of Kim Wilson, CEME Senior Fellow
In uncertain times do developed economies have the resiliency in their financial inclusion processes to withstand rapid change without risking systemic stability and consumer protection?
Modern, nationally integrated systems, high-capacity supervision, and flexible policymaking are helping Germany turn the refugee crisis into an economic opportunity.
The German Federal Financial Supervisory Authority, commonly known as BAFIN, this fall relaxed requirements for opening a bank account. The new rules allow accounts to be opened with a stamped document from an appropriate German authority, such as BAFIN, along with a picture and personal information. Transitional rules are in effect until the approval of the law, expected this year. A directive in the European Union, which will begin in September 2016, will require similar access to bank accounts across the EU.
When it comes to ISIL, Europe is repeating the sins of its fathers
While candidate Trump spouts anti-Muslim rants, elected officials on both sides of the Atlantic are pressing ahead with plans for military action that will shed real blood. The British Parliament just voted to join French airstrikes in Syria. US lawmakers, prominent democratic senators included, are pressing for a formal declaration of war against ISIL.
European powers have learned the virtues of peace at home. But, as the UK vote shows, the curse of waging war in faraway lands continues.
Read the full op-ed from Prof. Bhidé in Quartz
Europe’s Other Crisis: A Digital Recession
You may have heard that Europe is in a state of crisis. This has nothing to do with an influx of refugees, or Greek debt, or even the future of the European Union. The crisis we speak of has even more severe consequences for Europe’s global competitiveness. In our research on the state and pace of digital evolution worldwide, we have found that the old continent is in the midst of a “digital recession.”
Read the full piece from Dean Chakravorti and Ravi Shankar Chaturvedi in Harvard Business Review