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Emergent Digital Fragmentation

The Perils of Unilateralism

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Policymakers are flying blind as they shape and nurture the digital domain which is a recipe for poor public decision-making. This joint report of the Digital Policy Alert and the Global Trade Alert fills the evidence gap. It adopts a comprehensive view of the policies affecting the digital domain and their cross-border repercussions. A whole-of-supply-chain approach is taken, drawing in policy decisions affecting upstream activities that support the digital economy, midstream activities, and downstream activities. Evidence on over 15,000 policy and regulatory developments is used to provide a comprehensive perspective including legal and regulatory developments in data governance or content moderation as well as information on the resort to trade and investment policy changes and subsidy policies.

Authors

Simon Evenett, Johannes Fritz

Date Published

28 Jun 2022

Policymakers are flying blind as they shape and nurture the digital domain which is a recipe for poor public decision-making. Policy incoherence at home coexists with international regulatory divergence. A fragmented internet and global digital economy denies users choice, diminishes the incentives for innovation, exacerbates trade tensions between governments, and increases the risk of numerous crises.

This joint report of the Digital Policy Alert and the Global Trade Alert fills the evidence gap. It adopts a comprehensive view of the policies affecting the digital domain and their cross-border repercussions. A whole-of-supply-chain approach is taken, drawing in policy decisions affecting upstream activities that support the digital economy (e.g. the mining of Rare Earths), midstream activities (e.g. developments in the critical semiconductor sector and in hardware and software), and downstream activities (e.g. platform businesses and digital delivery to customers).

Evidence on over 15,000 policy and regulatory developments is used to provide a comprehensive perspective including legal and regulatory developments in data governance or content moderation as well as information on the resort to trade and investment policy changes and subsidy policies.

More information

Introduction of the 29th Global Trade Alert Report by our CEO and co-author Johannes Fritz

The joint report of the Digital Policy Alert and the Global Trade Alert focuses on fragmentation risks for the global digital economy. Co-author Johannes Fritz takes us through the main findings of the report as well as the challenges and opportunities he sees ahead:

Deborah Elms on the impact of emergent digital fragmentation on small companies

Following the publication of our joint report, we had the opportunity to speak to Deborah Elms, Founder and Executive Director of the Asia Trade Centre. Listen to her thoughts on how fragmented digital rules affect smaller companies and what could be done to resolve emergent digital fragmentation:

Jake Colvin on the effect of digital fragmentation and the need for government collaboration

Following the publication of our joint report, we had the pleasure to speak to Jake Colvin, President of the National Foreign Trade Council, on the topic of digital fragmentation. Hear his thoughts on how governments can reverse the tide of digital fragmentation and harmonise policies going forward:

Stephanie Honey on countering digital fragmentation and digital economy agreements

We had the pleasure to speak to Stephanie Honey on the topic of digital fragmentation following the publication of our joint report. Hear her thoughts on digital fragmentation and the role of new digital economy agreements. Stephanie Honey is the Director of Honey Consulting and was a former New Zealand trade negotiator: