In the second session of a series of webinars marking the Lee Kuan Yew School of Public Policy's16th Anniversary, Assistant Professor Araz Taeihagh moderated a discussion centred around digital technology and more specifically, disruptive technologies. How should governments and policymakers tackle the rise of digital and disruptive technologies, and the effects they have on the world?
Clockwise from top left: Assistant Professor Araz Taeihagh, Associate Professor Vu Minh Khuong, Associate Professor Eduardo Araral, Associate Professor in Practice Francesco Mancini
'Disruptive technology' — what does it mean?
With the rise of technology and the advent of the digital revolution came a form of technology referred to as 'disruptive technology'. These are technologies that are digital and data-based, such as 5G, Artificial Intelligence (AI), blockchain, and autonomous systems.
According to Professor Danny Quah, Dean of LKYSPP, disruptive technologies affect our lives at a deeply personal and individual level, just as much as they do the large scale geopolitical landscape.
With time, these technologies will become increasingly integrated into our futures. Even as we speak, there are conversations about initiatives such as smart cities, e-governance, and Fintech, all of which use newer digital technologies.
That being said, digital transformation is a double-edged sword. "They can all be used for nefarious purposes by those who intend us harm, just as much as they can be used for good", said Prof Quah.
The rise and benefits of digital transformation
One of the many benefits of digital transformation is increased efficiency and effectiveness in many sectors.
Technology, for example, has granted us ease of access to global knowledge, as well as the ability to share our knowledge with people all over the world. This has created a "remarkable supply and demand for learning and innovation," said Associate Professor Vu Minh Khuong. In addition to this, the quality and efficiency of decision-making has improved due to the greater accessibility of information.
In terms of governments and leadership, the rise of technology has enhanced the foundation of long-term development by allowing for greater transparency, accountability and integrity of leadership.
On a societal level, digital technology can also prevent conflict and foster peaceful and harmonious societies.
Associate Professor in Practice and Associate Dean, Executive Education Francesco Mancini highlights the use of peace technology, or Peace-Tech, a "fundamentally mediating technology that can be used to augment our ability to engage positively with others". He also cites the use of Peace-Tech in Colombia to make the country's peace processes more comprehensive or the use of games to educate younger people to minimise negative influences in Kenya.
The dangers of digital technology
The danger with disruptive technology lies in its ability to alter our behaviour and our cognitive capacities. "The algorithms and models behind them are designed to make us behave in a certain way," said Professor Mancini.
While these technologies are usually designed for benign means such as advertising merchandise, we have seen evidence of violence being enhanced by digital technology across the globe.
Here, he highlights three structural challenges posed by digital technology that contribute to this enhanced violence.
Firstly, information pollution has become a growing problem over the years. The deluge of information provided by technology, as well as the uniform delivery of all kinds of information, makes it difficult for users to distinguish between real or fake information.
Secondly, many kinds of digital communication technology aim to promote strong reactions. The goal is to keep us engaged, and the algorithm is specifically engineered to promote items that generate strong reactions from the viewers.
Lastly, technology has led to the creation of filter bubbles across various platforms. These platforms have algorithms designed to exacerbate our human tendency to form ties with those similar to us. What this does, however, is create echo chambers that reject alternative narratives and limit mutual dialogue, which is particularly dangerous for socially diverse nations such as Singapore.
"These bubbles limit our capacity to empathise with others, to dialogue and live together in a peaceful way," said Professor Mancini about the dangers of filter bubbles in multi-ethnic and multi-religious nations.
Effects of COVID-19 on digitalisation
Despite the numerous disruptions brought about by the coronavirus pandemic and the challenges it poses to our daily lives, it has actually brought about several unprecedented developments.
The pandemic played a positive role in creating immediate and urgent incentives to embrace digital transformation culture, and forced people to undergo a "cyclical evolutionary process". Digital technology has then helped us become more resilient and able to better cope with the crisis by learning to become more comfortable with digital processes such as online learning.
Additionally, technology has played a crucial role in alleviating and mitigating challenges faced by governments during the pandemic. One of the key challenges faced by governments was giving financial support to their people and to small businesses. Digital ID systems in India allowed authorities to quickly disperse money to large quantities of people.
That said, it must be acknowledged that the speed at which the world was forced to adapt actually emphasised the existing risks and dangers of digital technology.
For example, the issue of information pollution was exacerbated when people were forced to engage with others digitally rather than socially. This dichotomy, said Professor Mancini, is making the challenges of digital technology even stronger.
The pros and cons of 5G
When it comes to newer forms of digital technology, 5G is often a topic of interest. From enhancing the online gaming experience, to fighting fires with a drone, 5G seems to have great potential.
Prof Taeihagh suggests that 5G would enhance the use of certain forms of technology that are now limited to us due to latency and bandwidth issues, such as autonomous vehicles.
On the other hand, there is concern about the implications of 5G on the labour market. A smart factory for garments using 5G for example, could be more efficient and effective than a regular factory, but this would come at the expense of the labour force. This could pose significant problems for developing countries with a lot of surplus labour, said Associate Professor Eduardo Araral, Co-Director of the Institute of Water Policy.
Moreover, there are also larger geopolitical implications around the use of 5G, as it is also a lynchpin in the US-China rivalry, with Chinese tech company Huawei caught in the middle. There have been concerns over countries being given a "false choice under distress" and pressured away from choosing Huawei even though it's a lower cost solution, simply because it is threatened by a bigger country.
Regional and international cooperation
The pandemic has exposed the lack of cooperation around the world, and has shown how little global leadership there is when it comes to digital technology.
One possible reason behind this is the phenomenon of a digital dilemma, in which countries choose not to cooperate with one another in cybersecurity, even though they are aware that they would benefit from doing so. This is often because of a lack of individual incentive, said Prof Araral.
One digital trade model for the rest of the world to follow would be the Digital Economy Partnership Agreement (DEPA) formed between Singapore, Chile and New Zealand. This agreement facilitates the exchange of digital information between the countries, establishes new approaches to digital trade issues, and altogether addresses the issues of digitalisation.
"The current rules are built for an industrial world," said Prof Araral. The world needs to take a new approach that is better suited for a digital world, and governments need to work together to make this happen.
The right regulation at the right time
When it comes to implementing regulations, governments need to be careful to strike a balance. After all, regulation can create demand, but can also stifle innovation if it is unnecessary or done too early.
A lot of regulations, such as those over data sharing, can be implemented out of fear. At the same time, many companies avoid implementing checks and balances for fear of losing out. The complexity of the issue warrants a conversation, according to Prof Araral. "There are many ways to deal with this. It's not a binary issue."
But for some disruptive technologies, regulating should be balanced between risk management and innovation stimulation. This requires a strategic approach rather than just reacting to some potential problems. In many circumstances, curative approaches may work better than preventive ones in designing regulations and policy related to disruptive technologies, according to Prof Vu.
Another suggestion is that public policy schools ought to teach smarter ways of regulation. It is important to cultivate new ways of thinking and new systems, so that companies will not react with fear and return to "the old way of doing things".
In the same vein, Prof Taeihagh suggests the implementation of certification schemes. In doing so, governments will have a way to make sure that everyone is educated about the risks and consequences of digital technology.
The responsibility does not, however, lie entirely with the government. Industries need to get involved with public policy as well. Prof Mancini suggests that a social impact test ought to be introduced to the innovation process. In doing so, the impact of a product or service on the people becomes a "design consideration, and not just damage control".
A digital mindset and moving towards the future
The rate at which digital technology is advancing may be too much for some countries to handle. Governments vary in their capacity to deal with the challenges of these new technologies, and even within their own government, they have different approaches to different aspects of technology, such as social media regulations or data protection and ownership.
But despite all these risks and challenges, governments should not shun digital technology. The costs of overlooking the opportunity to embrace digital technology can be exorbitant, and governments also run the risk of creating a digital divide. Indeed, it is absolutely crucial for governments to adopt a digital mindset.
"Embracing digital technology should be a top priority in every policy agenda," said Prof Mancini. "We have to embrace this to change our lives for the better into the future."
Watch Governance of Disruptive Technologies: