Challenges and opportunities in the Digital World: Brazil perspective

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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

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NO MATTER WHAT THE CURRENT SITUATION IS, ONE

THING SEEMS CLEAR: THE FUTURE WILL BE EVEN MORE

DIGITAL.

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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

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Digital technologies are key for the future agenda

of social, industrial, economic, and political

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700.000 km without incident!

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Impact of IT on the Brazilian Economy

2013*

Information CommunicationTechnology (ICT)

US$ 162 billion

Information Technology

US$ 61.6 billion

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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

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+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 2 9 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%

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

RUS MEX IND BRA FRA ALE CHI INGL JAP EUA ARG

CHI

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

Participação do Setor Financeiro no Total de Gastos com 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&

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

Despesas e Investimentos em Tecnologia do Sistema Financeiro (em bilhões de USD - 2014)

36,9 24,3 22,8 17,2 11,9 7,7 5,6 4,1 1,8 1,2 178,8 40,3

RUS MEX BRA FRA ALE CHI INGL JAP EUA ARG

CHI IND

Total de gastos

em TI pela indústria bancária: USD351 Bi

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Internet of Things: data collection

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Internet Regulatory Framework



1995: The Internet Steering Committee – CGI.br

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2009: Principles for Internet use and governance

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2011: Marco Civil – The Civil Rights Framework for the

Internet, approved by Congress in 2014.

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2014: NETmundial

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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

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Information Technology:

Economic Prosperity and Brazilian Society Needs Depend on Digital

Public safety Education Healthcare Sustainability

Energy Transport &

Cities

Emergency and Disaster Response

Innovation

DATA, ALGORITHMS, SOFTWARE AND SENSORS

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OVERVIEW OF THE BRAZILIAN PRIORITIES

FOR INFORMATION TECHNOLOGY:

- Components and Semiconductors

- Systems and Devices (hardware)

- Software and Services – TI Maior

- Advanced IT infrastructure

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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)

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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

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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}

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START-UP BRAZIL

In numbers

ACELERATORS Call for participation STARTUPS 3 2+2 (4 groups)

Call for proposals

INTERNACIONAL NACIONAl

PROPOSALS

183

STARTUPS

Funded by the Program

20%

80%

2.855

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Brazil and Germany: exploring the possibilities of

collaboration

• Premise: some characteristics of the digital Brazil may be

useful for a Germany-Brazil collaboration

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Size of the Internet market in Brazil

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Modern Internet governance system in Brazil

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Diversity of the Brazilian Internet sector

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Geopolitical role of Brazil in Latin America

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Strong graduate programs in Computer Science & Engineering

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European mindset of the Brazilian culture

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Strong German manufacturing companies in Brazil

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Germany and Brazil: joint experimental ``testbed’’ for new digital

technologies

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Brazil and Germany: exploring the possibilities

• Software and systems for advanced manufacturing

• Global Internet technologies

• Global Internet Governance

• Cybersecurity: multistakeholder approaches

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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

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Agenda for Digital Brazil: 2015-2018

Main Areas

Digital

Society Competitiviness

Government as

Plataform Crosscutting Initiatives

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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.

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