Presentation given by Chafic Chaya online at the Middle East and Adjoining Countries School on Internet Governance on 8 July 2021

1. Chafic Chaya| MEAC-SIG 2021v| 8 July 2021
The Impact of Internet Governance on
Economic Development and Growth

2. Cha
fi
c Chaya| MEAC-SIG 2021v| 8 July 2021
2
Summary
• Investigate how the Internet
promotes economic
developmen
t
• Examine the relationship
between Internet governance
and economic output
• Look at different possible
economic performance
scenarios

3. Cha
fi
c Chaya| MEAC-SIG 2021v| 8 July 2021
3
Internet Promotes Development
• Studies found broadband Internet has a positive economic impac
t
• A variety of models and analyses have been designed to measure
the impact of broadband Internet on the economy with different
formulas and variable
s
• Basically, developing countries have lower technological penetration
than the developed countries, and hence, technological innovation
will have more signi
fi
cant impact on their economies

4. Cha
fi
c Chaya, DBA | Internet Governance Webinar | 13 Oct 2020
0
0.8
1.6
2.4
3.2
World Bank (2009) Scot (2012) Zaballos & Lopez (2012) Koutroumpis (2018)
Increase in GDP per 10% increase in fixed broadband penetration
Internet Impacts on Economic Growth
4

5. Cha
fi
c Chaya| MEAC-SIG 2021v| 8 July 2021
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Good Internet Governance is Indispensable for
Economic Development
• Internet increases productivity and contributes to economic growth,
it therefore deserves a central role in development strategie
s
• However, good governance is indispensable for such developmen
t
• Studies from the International Monetary Fund (IMF), United
Nations (UN), and World Bank show that good governance plays a
signi
fi
cant role in economic growt
h
• These studies measure the quality of governance using metrics
which are the main pillars for any successful Internet governance
process

6. Cha
fi
c Chaya| MEAC-SIG 2021v| 8 July 2021
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Impact of Governance on Economy Growth
• An approach that aligns Internet
governance and economic
performance according to the World
Bank (2005) and Khan’s
fi
ndings (2004
)
• A positive relationship has been seen
correlating the rate of growth with the
governance indicators:
Voice and Accountability
Political Stability
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption

7. Cha
fi
c Chaya| MEAC-SIG 2021v| 8 July 2021
7
Code of Good Internet Governance
• Decision-making processes within Internet governance should
be open, transparent and inclusiv
e
• Internet governance processes should enable and encourage
all those who wish to participate and make contribution
s
• Any individual or organisation should be able to initiate ideas
and debates about Internet governanc
e
• Internet governance entities should produce and share clear
information about modes of participation and administration
processes

8. Cha
fi
c Chaya| MEAC-SIG 2021v| 8 July 2021
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The Internet Governance Framework
• Internet is becoming the 21st
Century’s global infrastructur
e
• A new form of governance is
emerging with inclusiveness,
openness, transparency, and
accountability as attribute
s
• Four layers: Multistakeholder
process foundations,
stakeholders participation,
Enablers and Target.

9. Cha
fi
c Chaya| MEAC-SIG 2021v| 8 July 2021
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Critical Success Factors
• A new renegotiation between government and other
stakeholders

10. Cha
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c Chaya| MEAC-SIG 2021v| 8 July 2021
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Optimal Area: Convergence of Authority & Expertise
• To achieve a robust structure
for the proposed model, the
optimal area is where authority
and expertise converg
e
• Decisions should be taken
through the interaction of
participating interests, rather
than an exercise of power by a
single individual or interest
group

11. Cha
fi
c Chaya| MEAC-SIG 2021v| 8 July 2021
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Economic Performance Scenarios
• The stronger the multistakeholder structure, the better the
Internet governance process and economic performance

12. Cha
fi
c Chaya| MEAC-SIG 2021v| 8 July 2021
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Takeaways
• The Internet promotes innovation, boosts ef
fi
ciency and
increases inclusion
• Internet governance has a signi
fi
cant impact on a country’s
economic growth and plays a central role in developing
strategie
s
• The concept of multistakeholder Internet governance is still
vague and complex, and the roles and responsibilities of
different actors are yet to be de
fi
ned

13. ?
Questions
cha
fi
c.chaya@ripe.ne
t
@cha
fi
cc1