Internet Governance in Asia An Opportunity for Japan - US Cooperation

1. Internet Governance in AsiaAn Opportunity for Japan - US Cooperation Dr. Jiro Kokuryo Vice President for International Collaboration Keio University

2. The Internet In Asia • Asia is the fastest growing region in the world and increasingly it is the Internet that is supporting this growth. China has 600 million users and will soon have a billion. India is not far behind. If a defining characteristic of the Internet is scale, the center of the Internet will be Asia • Already, the balance in Asia and globally is tipping in favor of a dynamic group of Chinese companies that have been pushed forward by a large domestic market. You probably already know these names (and if you don’t you will): Alibaba, Baidu, Tencent, Sohu, Taobao, Tudou, Ushin and Weishin.

3. Internet Governance in Asia • Internet grew as fast as it did because the leading countries – the US, EU and Japan embraced the global nature of the Internet and shared certain fundamental values. • This is not necessarily the case for all countries in Asia. China has been quite blunt in asserting its “cyber sovereignty” and the diversity of cultures, languages, levels of economic development and political systems has made it difficult to develop a common approach on policy issues.

4. NO One Voice or message from Asia • There has been some progress within APEC and discussions within ASEAN on common frameworks for privacy and security • Yet Asian countries have generally been taking somewhat divergent national approaches to regulation of the Internet, potentially raising obstacles to the growth of the Internet as an integrative force in the region. • Despite the explosion of the Asian presence on the Internet, the Asian voice on global Internet governance issues has been muted and inconsistent.

5. Rules for the Global Internet (1) • The last decade has seen a number of international efforts to make rules for the Internet, but progress has been limited. • The December 2012 World Conference on International • Telecommunication (WCIT) in Dubai broke down after midnight in controversy over the role that the ITU might play in regulating the Internet. • The Internet Governance Forum (IGF) was launched in 2006, but it has done little to advance new ideas or rules.

6. Rules for the Global Internet (2) • The Cyber Space Conference process has had three international meetings in three years, the last most recently in Seoul, but no clear roadmap has emerged. • In April, the Brazil will convene the Rio Summit on Internet governance, with the goal of “internationalizing” the functions now supported by ICANN. • In many respects, the Internet is at a crossroads. We are coming closer to the goal of connecting the entire world, but the global nature of the Internet and the innovation and growth associated with it is at grave risk, if we fail to solve the issue of governance

7. Why Has Progress Been So Slow? • Making rules for the global Internet is challenging due to the global and multi-stakeholder character of this technology. Traditional rules and processes for governing telecommunications and broadcasting are not necessarily relevant. • Despite its obvious economic and commercial importance, Internet governance is intrinsically a political problem concerned with the appropriate balance between states and individuals in controlling and using information.

8. Breakdown at WCIT in 2012 • Nations attending the World Conference on International Telecommunications in December 2012 voted two to one in favor of changing the rules to give the ITU a larger role in governing the Internet. • Countries opposing this change included the US, the EU, India and Japan – together accounting for two-thirds of the global ICT industry. Absent their support the issue has been shelved for the moment – but there is much at stake • Japan and others are rightly concerned that the new rules would expand state interference in the future development of the Internet and retard innovation and competition.

9. The US and Internet Governance • The US has played a leading role in creating the global Internet and its leadership is still key to the Internet’s future. • Basic principles can be found in Secretary Clinton’s 2010 statement that the Internet should be “free” of state interference and that all individuals have a right of “access” to the Internet, which cannot be restricted by governments. • The US rejects the assertions of “cyber sovereignty” by China and other governments as dangerous to the future of the Internet, which must remain in principle “global and free” of government interference

10. Us dominance Questioned • US Internet “principles” are undermined in the view of some by the US government interest refusal to surrender “control” of the basic infrastructure of the Internet. Trust in the US commitment to Internet freedom was also hurt by PRISM and related incidents and needs to be restored. • Current US policy is to leave the assignment and management of domain names and IP addresses to ICANN, but to reserve the right to intervene to support the “integrity” of the Internet through its control of the root servers that direct Internet traffic. • The April meeting in Brazil appears aimed at developing an alternative to this model of US “stewardship” and to changing the ICANN charter

11. Japan VIEWS ON Internet Governance • Japan remains committed to the multi-stakeholders process of global Internet governance and the principle of individual right to access the Internet. • This does not rule out a role for government in the management of the Internet, but any reforms of ICANN and other transnational organizations charged with responsibility for the Internet should be consistent with the principle of sustaining a “free and open” Internet. • Japan fundamentally believes in a market-oriented approach to Internet governance with regulation as the exception not the rule.

12. guarding a “Free and Open” Internet • In a period when the principle of a “free and open” Internet is under considerable challenge internationally, close coordination by Japan with the US and other likeminded nations and parties on such questions is essential to preserving the global Internet and its benefits. • Changes in the administration and governance of the Internet should be based on a consensus of all parties to the process and not simply on “the rule of the majority” or unilateral assertions of “cyber sovereignty.” • In all cases, government involvement should be reserved as a “last resort” to preserve the integrity of the infrastructure of the Internet.

13. The Future of Japan – US Cooperation • In the past, a small group of leading academics and engineers in the US, EU and Japan provided the leadership for the global Internet. But this model is now under intense scrutiny, with many countries calling for wholesale change. • Japan and the US need to deliver a clear message that a market-based approach to Internet governance is necessary to preserve innovation and competition in the Internet Economy in Asia. • The starting point is domestic policy – Japan and the US should be models for other Asian countries on issues like privacy, the sharing of online content and net neutrality.

14. US-Japan Internet Economy Dialogue • The Japan – US Internet Economy Dialogue is a crucial bilateral framework for discussions on the Internet policy. Launched in 2010, the fifth session of the Dialogue is set for March 2014. • Discussions have focused on a range of bilateral concerns, including privacy, cyber security, measures against online piracy and steps to facilitate cross-border data transfers. There is also close coordination with the respective business communities on issues related to the utilization of cloud computing and big data • More recently, the Dialogue has been an opportunity for Japan and the US to share and develop common perspectives on issues in Internet governance. The upcoming meeting will be a particularly important chance to coordinate views in advance of the Rio Summit.

15. Japan - US Cooperation in Multilateral forums • With the future of the Internet in the balance, both Japan and the US need to engage proactively on the issue of Internet governance in multinational fora in close collaboration with their respective private sectors. • Discussions within APEC on Cross Border Privacy Rules (CBPR) and in the TPP negotiations on issues like e-commerce, financial services, intellectual property and the role of state owned enterprises are an opportunity to shape the rules for the Internet in the Asian region. • Careful attention must be paid to discussions within the ITU and other UN bodies lest they undermine the multistakeholder character of the Internet and threaten the innovation and competition that has supported the growth of the Internet Economy.

16. Academic dialogue on the Future of the INternet • Keio University is very interested in expanding its dialogue on the future of the Internet with counterpart universities in the United States and with Asia. • We recently launched the Keio International Project for the Internet & Society (KIPIS) to provide information about Internet policy developments in Japan and to identify partner institutions elsewhere to work collaboratively on Internet governance issues. http://kipis.sfc.keio.ac.jp • We believe that universities in Japan and the US have an important role to play in defining the issues and offering potential solutions to the challenges of Internet governance in Asia and globally.

17. Practical Next steps • A key focus of our current outreach is short-term faculty and student exchange programs that build the ties that then can be sustained and deepened through social media and Skype. We have an ongoing program with Harvard’s Berkman Internet & Society Center and are developing a similar program with Korea University. • Our objective is to support research that identifies the problems and offers solutions to government and corporate leaders and to build the capacity to address and manage these problems through training the next generation of Asian leaders and building a network of Asian institutions working collaboratively on these questions.