Challenges and opportunities in the Digital World: Brazil perspective Virgilio A. F. Almeida National Secretary for Information Technology Policies Ministry of Science, Technology and Innovation São Paulo, September 2015
Warning: NO MATTER WHAT THE CURRENT SITUATION IS, ONE THING SEEMS CLEAR: THE FUTURE WILL BE EVEN MORE DIGITAL.
Talk Outline Digital economy Impact on social, industrial and political issues quick and disruptive changes impact of digital on jobs and economic prosperity Digital economy in Brazil Facts and figures Legal & regulatory aspects Government programs for ICTs Brazil and Germany: opportunities in the digital world
Digital technologies are key for the future agenda of social, industrial, economic, and political issues.
Digital economy: quick and disruptive changes
What is the impact of digital on jobs and economic prosperity?
700.000 km without incident!
Digital Brazil: facts and figures
Internet - economy
Impact of IT on the Brazilian Economy Information CommunicationTechnology (ICT) Information Technology 2013* US$ 162 billion US$ 61.6 billion 1º 2º USA US$ 985 B Japan US$ 319 B 9º 10º Russia US$ 71 B Italy US$ 70 B 7% of GDP 3º China US$ 270 B 11º Australia US$ 69 B 4º UK US$ 164 B 12º Mexico US$ 55 B 5º Brazil US$ 162 B 13º Spain US$ 54 B 6º Germany US$ 149 B 14º Korea US$ 52 B 7º France US$ 118 B 15º India US$ 51 B 8º Canada US$ 96 B Other US$ 903 B
Brazil: society open to new technology 1.2 Millon IT professionals 34 Brazilian companies ranked in the Global Fortune 2000 40.9 Million broadband access 2.4% of the IT world market share 3rd ranked in the world PC market 49.6% share in Latin America 218 Million mobiles 7th biggest internal market of ICT 5th world mobile market 81.5 Mn of Internet users 65 Million Facebook users 2nd 33.3 Mn Twitter users 2nd 4 Million on Flickr - 2 Mn on LinkedIn 29 Million on Orkut - 5 Million on Skype Sources: ABINEE, ABES, BRASSCOM, IBGE, 2010.
Banking transactions in 2014: growth of mobile banking Billion of transactions +13% a.a. +14% 46 TACC 10-14 28 4% 5% 14% 13% 4% 32 12% 12% 27% 4% 1% 2% 4% 36 11% 13% 26% 4% 6% 4% 40 10% 13% 23% 3% 3% 12% 8% 13% 21% 3% Mobile Correspond. Contact Center Agências POS ATM +209% +6% -1% -2% +13% +5% 29% 36% 39% 39% 41% 41% Internet +17% 2010 2011 2012 2013 2014 Fonte: Pesquisa FEBRABAN de Tecnologia Bancária 2014; Análises Strategy& 2 9
Brazil: banking investments in IT in 2014 11.9 billion US$ Despesas e Investimentos em Tecnologia do Sistema Financeiro (em bilhões de USD - 2014) 178,8 Total de gastos em TI pela indústria bancária: USD351 Bi (2014) 1,2 1,8 4,1 5,6 7,7 11,9 17,2 22,8 24,3 36,9 40,3 CHI ARG RUS MEX IND BRA FRA ALE CHI INGL JAP EUA Participação do Setor Financeiro no Total de Gastos com TI do País (1) (% do total de gastos com TI 2014) Total de gastos em TI no Brasil: USD 59 Bi (2014) 17% 18% 16% 16% 19% 18% 18% 17% 17% 19% 17% 18% CHI ARG RUS MEX IND BRA FRA ALE CHI INGL JAP EUA Nota: (1) Incluindo Bancos e Seguradoras; Fonte: Pesquisa FEBRABAN de Tecnologia Bancária 2014, Gartner, Análise Strategy& 30
Internet of Things: data collection
Internet Regulatory Framework 1995: The Internet Steering Committee CGI.br 2009: Principles for Internet use and governance 2011: Marco Civil The Civil Rights Framework for the Internet, approved by Congress in 2014. 2014: NETmundial Personal Data Protection Bill (*)
Marco Civil: The Civil Rights Framework for the Internet Defines principles, rights and responsibilities for citizens, companies and government agencies. It articulates the interconnection of technological and legal codes Process: Participatory Bill proposed by Ministry of Justice, inspired by CGI Charter of Principles 2009: online consultation process and public debate on the internet Open source platform created by Ministry of Culture: Digital Culture, received 2000 suggestions from institutions (eg.: Globo, Federal Police, etc) and citizens. Law sanctioned by the President on April 23, 2014: No. 12.965/2014
Information Technology: Economic Prosperity and Brazilian Society Needs Depend on Digital DATA, ALGORITHMS, SOFTWARE AND SENSORS Public safety Education Healthcare Sustainability Energy Transport & Cities Emergency and Disaster Response Innovation DATA, ALGORITHMS, SOFTWARE AND SENSORS
OVERVIEW OF THE BRAZILIAN PRIORITIES FOR INFORMATION TECHNOLOGY: - Components and Semiconductors - Systems and Devices (hardware) - Software and Services TI Maior - Advanced IT infrastructure
Human Capital Formation for IT and Computing Graduate Studies 69 graduate programs in Computer Science in Brazil (7 world-class programs) 25 PhD programs and 67 MSc programs in Brazilian universities 1200 MSc and 200 PhDs per year Undergraduate More than 2000 undergrad. programs: Computer Science, Information Systems and Computer Engineering and Computer Technology More than 300.000 students enrolled in undergraduate computing and IT courses IT and Computing Jobs There are more than 1.7 million jobs (estimated number for 2013) 750 thousand jobs will be created until 2020
Government Programs for the IT Industry Mechanisms and policies to enhance competitiveness of IT and software industry and strengthens the IT base in Brazil 1) Federal incentives Local Manufacturing IT Law (Lei de Informática) Law 8.248, de 1991 (for ICT manufacturers) Certificate of Hardware Product Developed in Brazil (Portaria 950 Law do Bem Law 11.196, 2005 Incentives and Grants for R&D PADIS - Law 11.484, 2007 (semicondutores and displays R&D included) Software Law: payroll tax exemption, 2011 2) Funding for R,D&I BNDES (Brazilian Development Bank) FINEP Private funds (Venture Capital) 3) Fellowships for R,D&I CNPq
NATIONAL STRATEGY FOR SOFTWARE AND IT SERVICES TI MAIOR - Digital Ecosystems - Start Up Brazil - Human Capital Formation for IT - Attraction of Global R&D centers (IBM, Google, GE, Microsoft, SAP, Intel, EMC, Huawei and Baidu) - - Total public investments: 500 million of reais Private investments: 700 million reais (as of April/13)
START-UP BRAZIL In numbers 3 ACELERATORS Call for participation 80% NACIONAl 2.855 PROPOSALS 2+2 STARTUPS (4 groups) Call for proposals 20% INTERNACIONAL (5%~6%) 183 STARTUPS Funded by the Program
Brazil and Germany: opportunities in the digital world
Brazil and Germany: exploring the possibilities of collaboration Premise: some characteristics of the digital Brazil may be useful for a Germany-Brazil collaboration Size of the Internet market in Brazil Modern Internet governance system in Brazil Diversity of the Brazilian Internet sector Geopolitical role of Brazil in Latin America Strong graduate programs in Computer Science & Engineering European mindset of the Brazilian culture Strong German manufacturing companies in Brazil Germany and Brazil: joint experimental ``testbed for new digital technologies
Common Challenges
Brazil and Germany: exploring the possibilities Software and systems for advanced manufacturing Global Internet technologies Global Internet Governance Cybersecurity: multistakeholder approaches Startup Programs
Can other international negotiations leverage international cooperation on cyber security? Cyber Threats Cyber war: state actors Economic espionage: state ctors Cyber crime: non-state actors Cyber terrorism: non-state actors Evolution As cyber threats alliances, tactics and technology evolve, the categories will increasingly overlap -> multistakeholder organizations Examples: Sony attack; Multiple sectors of society Fighting Spam the Multistakeholder Way A Case Study on the Port 25/TCP Management in the Brazilian Internet; Cyberspace governance initiatives lag behind the evolution of the digital world.
Cyber-defense and Multistakeholder Models
Agenda for Digital Brazil: 2015-2018 Main Areas Digital Society Competitiviness Government as Plataform Crosscutting Initiatives Technological and Digital Sovereignty
Conclusion Cyberspace governance is a process under construction; Need of innovation solutions for global governance processes for a connected world; Cybersecurity initiatives require the participation of all sectors of the society; Multistakeholder approaches can contribute to improve global cybersecurity.
Thanks! virgilio.almeida@mcti.gov.br