Challenges and opportunities

in the Digital World:Brazil perspective

Virgilio A. F. Almeida

National Secretary for Information Technology PoliciesMinistry of Science, Technology and Innovation

São Paulo, September 2015

NO MATTER WHAT THE CURRENT SITUATION IS, ONE THING SEEMS CLEAR: THE FUTURE WILL BE EVEN MORE DIGITAL.

Warning:

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

2013*

Information CommunicationTechnology (ICT) US$ 162 billion

Information Technology US$ 61.6 billion

7% of GDP

USA | US$ 985 B

Japan | US$ 319 B

China | US$ 270 B

UK | US$ 164 B

Brazil | US$ 162 B

Germany |US$ 149 B

France | US$ 118 B

Canada | US$ 96 B

Russia | US$ 71 B

Italy | US$ 70 B

Australia | US$ 69 B

Mexico | US$ 55 B

Spain | US$ 54 B

Korea | US$ 52 B

India | US$ 51 B

Other | US$ 903 B

1º

2º

3º

4º

5º

6º

7º

8º

9º

10º

11º

12º

13º

14º

15º

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.

+209%

Banking transactions in 2014: growth of mobile banking

Billion of transactions

Fonte: Pesquisa FEBRABAN de Tecnologia Bancária 2014; Análises Strategy&

+17%

+5%

+13%

-2%

-1%

+6%

TACC

‘10-’14

29

3%

+14%

+13% a.a.

Internet

ATM

POS

Agências

Contact Center

Correspond.

39%

26%

13%

11%

4%4%

2%

2011

4%

32

39%

27%

12%

12%

4%4%

1%

2010

28

36%

29%

6%

14%

5%

10%

13%

23%

41%

40

2013

12%

3%

2012

4%3%

8%

13%

21%

41%

46

2014

Mobile

36

13%

18%17%19%17%17%18%18%19%16%16%

18%17%

RUS EUAINGL JAPCHIALEFRABRAINDMEXARGCHI

Brazil: banking investments in IT in 2014 – 11.9 billion US$

Participação do Setor Financeiro no Total de Gastoscom TI do País

(1) (% do total de gastos com TI – 2014)

Nota: (1) Incluindo Bancos e Seguradoras; Fonte: Pesquisa FEBRABAN de Tecnologia Bancária 2014, Gartner, Análise Strategy&

30

Total de gastosem TI no Brasil:USD 59 Bi (2014)

Despesas e Investimentos em Tecnologia do Sistema

Financeiro (em bilhões de USD - 2014)

36,9

24,322,817,2

11,97,75,64,1

1,81,2

178,8

40,3

RUS CHI INGLALE EUAFRAMEX JAPBRAARGCHI IND

Total de gastosem TI pela indústria bancária: USD351

Bi(2014)

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, companiesand 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, received2000 suggestions from institutions (eg.: Globo, Federal Police, etc) andcitizens.

• Law sanctioned by the President on April 23, 2014: No. 12.965/2014

Information Technology:Economic Prosperity and Brazilian Society Needs Depend on Digital

Public safety Education Healthcare Sustainability

EnergyTransport &

Cities

Emergency and

Disaster

Response

Innovation

DATA, ALGORITHMS, SOFTWARE AND SENSORS

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

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

Government Programs for the IT Industry

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

ACELERATORS

Call for

participation

STARTUPS

32+2

(4 groups)

Call for proposals

INTERNACIONAL

NACIONAl

PROPOSALS

183

STARTUPSFunded by the Program

20%

80%

2.855

(5%~6%)

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;

– 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.

Multiple sectors of society

Cyber-defense and Multistakeholder Models

Agenda for Digital Brazil: 2015-2018

Main Areas

Digital

SocietyCompetitiviness

Government as

PlataformCrosscutting 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