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Information Communication Technology
Usage in the US Commercial ServiceIntroduction ..................................................................................................................................................................... 2
Background and IssueThe NEI and the United States Commercial Service .......... .......... ........... ........ 3
Potential Benefits of the National Export Initiative ..................................................................................... 3
Problem and Question: Inefficient Communication of Domestic and State Actors ............. ........... . 4
Methodology .................................................................................................................................................................... 6
Policy Options - Linking Economic Growth, ICT, and Globalization ........... .......... ........... .......... ........... ...... 7
Economic Growth ...................................................................................................................................................... 7
Information and Communication Technology- Knowledge and Relationships ................. .......... ..... 9
Knowledge ............................................................................................................................................................... 9
Social Relations Capital ................................................................................................................................... 10
Total Factor Productivity ............................................................................................................................... 10Globalization........................................................................................................................................................ 11
Policy Options- U.S. ICT Indicators and Applicable Policies ....................................................................... 12
Domestic ICT indicators and policy................................................................................................................. 13
Policy 1 .................................................................................................................................................................. 14
Policy 2 .................................................................................................................................................................. 14
Policy 3 .................................................................................................................................................................. 15
State ICT Integration in Bureaucracy ............................................................................................................. 15
Policy 4 .................................................................................................................................................................. 15
Policy 5 .................................................................................................................................................................. 16
Policy 6 .................................................................................................................................................................. 17
Policy Analysis.............................................................................................................................................................. 18
Conclusion...................................................................................................................................................................... 19
Bibliography .................................................................................................................................................................. 20
Appendix A ................................................................................................................................................................ 23Appendix B ................................................................................................................................................................ 24
Appendix C ................................................................................................................................................................ 27
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Introduction
In a world inundated with new media, Mark McLuhan highlights the relevance of new
technology, "In a culture like ours, long accustomed to splitting and dividing all things as a means of
control, it is sometimes a bit of a shock to be reminded that, in operational and practical fact, the
medium is the message. This is merely to say that the personal and social consequences of any
medium - that is, of any extension of ourselves - result from the new scale that is introduced into our
affairs by each extension of ourselves, or by any new technology." 1 Our current Information
Communications Technology (ICT) development surge is unleashing endless dimensions of digital
infrastructure and innovative realms to store and share ideas, news, and culture. The dynamic nature
of this information flow raises many contentious puzzles in the global society. In the realm of politics,
ICT impacts domestic livelihood, foreign policy, and globalization.
Over the past decade, the United States has desperately sought solutions for their devastatingeconomic recession. The economy lies at the forefront of U.S. citizen concerns and the primary
subject of government action. The questionable efficacy of bailouts like the Troubled Asset Relief
Program (TARP) and the very generous government support of the automotive industry have sparked
contentious debate and lie far from any Bipartisan agreement. The most recent National Export
Initiative (NEI), relative to other past economic policies, is hardly as publicized or debated. It focuses
on promoting exports of Small and Medium sized Enterprises (SMEs). This feasible and rational
policy potentially serves many different interests and has potential to greatly help the U.S. economy.
Unfortunately, without sufficient public attention and scrutiny, which is usually stirred by extreme
oppositional debate, it remains a one-dimensional initiative with vague and ineffective practicality.
This paper will first detail how the NEI will help the U.S. economy. It veers away from the
endless debate between free and fair trade arguments and only highlights the intended benefits set out
by the NEI. This paper will present a general theoretical solution to the problems outlined. Next, it
details the under-emphasized importance of ICT use at domestic-firm level, as well as the state
infrastructure level of the United States Commercial Service (USCS). The normative debate over
open-ICT policy, arising from recent Wikileaks debates, is skirted as we are specifically concerned
with the efficacy of the NEI on the economy, and not overall government transparency. I will
evaluate existing U.S. indicators of ICT use to determine necessary areas to address concern. The last
section will recommend specific policies for the U.S. Government to implement for domestic-firm
1 Marshall McLuhan. Understanding Media: The Extensions of Man. New York: McGraw Hill, 1964. Print.
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and bureaucratic levels. This paper illustrates how ICT can best enhance SME trade through
complementarity externalities and communication interoperability. I propose that the NEI
should integrate more focus on ICT use and development to be effective.
Background and Issue
The NEI and the United States Commercial Service
The U.S. has experienced extreme economic successes over the past 180 years. Government
policy approaches have adapted to and outcompeted the international economy. With its large
unified market, a supportive political-legal system, vast areas of highly productive farmlands, vast
natural resources (especially timber, coal and oil), a cultural landscape that valued entrepreneurialism,
a commitment to investing in material and human capital, and at times a willingness to exploit labor,
the US has grown as a huge, integrated, industrialized economy that still makes up over a quarter of
the world economy. If it is to continue with trends of success, they must reanalyze the dynamic nature
of the global economy for and adapt its policies accordingly.
Potential Benefits of the National Export Initiative
The United States International Trade Administrations (ITA) primary goal is To create
prosperity by strengthening the competitiveness of U.S. industry, promoting trade and investment,
and ensuring fair trade and compliance with trade laws and agreements. This mission is girded by an
overarching vision, To foster economic growth through global trade.2 The National Export
Initiative is the newest responsibility of the ITA. Obamas outlines the goals of the NEI as an
Administration initiative to improve conditions that directly affect the private sector's ability to export.
The NEI will help meet my Administration's goal of doubling exports over the next 5 years by
working to remove trade barriers abroad, by helping firms -- especially small businesses -- overcome
the hurdles to entering new export markets, by assisting with financing, and in general by pursuing a
Government-wide approach to export advocacy abroad, among other steps.3
In a time of American recession, this policy has considerable aims to double American exports
and provide two million jobs for American citizens.4 The U.S. cannot return to an economy that is
driven by borrowing and consumption. If they are to maintain robust growth, the world will need to
2 United States,Department of Commerce 2.3 Exec. Order No. 13534, 3 C.F.R. (2010). Print.4 Exec. Order No. 13534.
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rely less on U.S. consumption and the U.S. will need to sell more to the rest of the world. Five
components are deemed to ensure successful export promotion. They aim to improve advocacy and
trade promotion efforts on behalf of U.S. exporters, so trade missions can introduce the world to
American products and advocacy centers can help U.S. exporters pursue opportunities.They aim to
increase access to export financing, so good opportunities do not fall through due to the inability to
finance an export. They aim to remove barriers to trade, so as many markets as possible are open to
our products. They aim to enforce their trade rules, to make sure our trade partners live up to their
obligations. Finally, they aim to pursue policies at the global level to promote strong, sustainable,
and balanced growth, so the world economy grows and their exports have robust markets. These are
crucial tasks for the government to pursue so Americas exporters can succeed around the globe.5
Problem and Question: Inefficient Communication of Domestic and State Actors
This policy deviates from past efforts of American expansionism. Past global economic
dominance seems to have been driven by the efforts and capabilities of large American multinational
companies. The NEI has redirected their focus and support for the Small to Medium sized Enterprises
(SMEs). The redistributive potential for economic equality between different sized firms seems
viable and macro-economically sound. Smaller firms are gaining easier access to global markets.
However, accessing global markets is a complicated endeavor to individually undertake, and there
has been a market bias detrimental for smaller firms without the resources to compete.Looking to SMEs changes the nature of this economic policy solution. We have to assess the
contextual issues of implementing this new approach.In light of the theoretical argument to empower
smaller businesses, how can their access to global markets be realistically attained? How does the
dynamic ICT global environment play a role in 21st
century foreign economy policy and the success
of SMEs? How should U.S. economic policy address issues of ICT to help leverage SMEs in the
international marketplace? These were a couple personal questions that arose during my internship
with the US Commercial Service (USCS), the export branch of the ITA.
Through observation and experience, two issues arise when addressing these questions.
Problems stemming from direct experiences have explicit and short-term implications for
international trade. Indirect problems may have more implicit and long-term implications on the
efficacy of the NEI as a whole policy. The reports of the NEIs progress over the past ten months so
5 Exec. Order No. 13534.
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far are impressive in numbers. However, working as an intern this summer I experienced the
inefficiencies of not form the ICT use of domestic-firms, but of the State office itself.
At the domestic level, SMEs do not have the resources to invest in research, development and
other ICT capacities as multinationals might. This is necessary to compete in the international
marketplace. The USCS aims to provide support for SMEs that may not be provided within their
individual capacity. They provide market intelligence, trade counseling, business matchmaking, and
trade advocacy. This is how the U.S. government facilitates necessary complementarity externalities
for smaller firm exports. However, the de facto efficacy of these objectives is hindered without
considering the nature of global trade in the 21 st centurya reliance on ICT. Is a complementary
ICT policy or amendment for the NEI needed? I address the answer to this question on two levels; to
encourage ICT investment at the individual firm level; to encourage ICT use at the bureaucratic level,
as the Commercial Service acts as the supporting international trade tool for these smaller firms.
I drew a few conclusions on how the Department of Commerce could benefit from
implementing a comprehensive ICT policy. After much research, I was impressed to find that the
state had in fact announced a strategy for American Innovation including a focus on Information and
Communication Technology, setting up a whole new bureau within the State, the U.S. Chief
Information Officers Council (CIO). I was thoroughly impressed that Obamas administration does
value the role that ICT plays. However, this drive for technological innovation and emphasis on
efficiency was not transferred over to the Department of Commerce and their policy initiatives.
Stemming from my understanding of economic concepts, this seemed like the most important
department to be integrating and accelerating ICT use. Why then, were these attitudes at the State
level going unrealized at the Department level? One can only conclude that more integration of
ideology and communication between these two bureaus was necessary.
Addressing this question may further our understanding of the power dynamic between
domestic economic actors and the international political environment. This is what might be
considered the institutional aspect of thinking about ICT support through policy: is it better to have
more or less bureaucracy dealing with these issues, and should such bureaucracy be set out in acentralized or decentralized manner, etc.? Conclusions drawn may support either an analytical liberal
or a neoclassical realist argument to assess state action. Some argue that ICT has a democratizing
effect and decentralizing impact for national state power.6 If evidence shows that the government is
6 Stephen Coleman. (1999) Can the New Media Invigorate Democracy,Political Quarterly 70, 1,16-22.
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consciously impeding or unnecessarily controlling this economic viability, this may support
neoclassical realist perspectives.
As well, due to the tremendous diversity of ICT technology, one has to be careful of the
straightforward logic that because ICTs seem to be a good thing, that governmental policy in support
of ICTs also a good thing. With all the simplistic rhetoric in the U.S. these days oscillating between
either deregulation of big government and freer markets or vice-versa, ICT infrastructure issues are
extraordinarily difficult to and deal with in a short paper such as this. In actuality, one has
to understand that sometimes more bureaucracy "in support" of a new technology may be a
constraining condition. It depends, one would think, on the nature of the technology and the specific
approaches taken for support and/or regulation. Sweeping generalizations in this regard are likely to
be driven more by
ideology than by insight into the nature and function of either ICTs or government. This paper aims
to provide specified and regulated ICT recommendations.
Methodology
With a thorough research analysis, we see how the emphasis on ICT can foster economic
growth. With a closer examination of ICT indicators within the U.S., we determine the best avenues
to foster ICT. I take this further by providing specific viable policy examples; one directed at
domestic firms and the other targeting the Trade Departments infrastructure.
The observations are inspired primarily by my experience interning with the United States
Commercial Service (USCS) Montreal from May to August of 2010. I heavily supplement my
observations with information drawn from scholarly research, publications, strategy documents, as
well as personal communication with prominent and experienced personnel of the Commercial
Service. Interacting with superiors, onlookers to the ICT dazed Generation Y 7 , I had trouble
expressing how impactful of a role ICT played in relationships, economics, and business. This
7Generation Y, also known as the Millennial Generation (orMillennials), Generation Next, Net Generation, EchoBoomers, describes the demographic cohort following Generation X. As there are no precise dates for when theMillennial generation starts and ends, commentators have used birth dates ranging somewhere from the mid-1970s to theearly 2000s. Characteristics of the generation vary by region, depending on social and economic conditions. However, itis generally marked by an increased use and familiarity with communications, media, and digital technologies. In mostparts of the world its upbringing was marked by an increase in a neoliberal approach to politics and economics.- Ian Shapira. "What Comes Next After Generation X?" The Washington Post. 07 June 2008. Web. 10 Dec. 2010..
http://en.wikipedia.org/wiki/Cohort_(statistics)http://en.wikipedia.org/wiki/Generation_Xhttp://en.wikipedia.org/wiki/2000s_(decade)http://en.wikipedia.org/wiki/Neoliberalismhttp://en.wikipedia.org/wiki/Neoliberalismhttp://en.wikipedia.org/wiki/2000s_(decade)http://en.wikipedia.org/wiki/Generation_Xhttp://en.wikipedia.org/wiki/Cohort_(statistics)8/4/2019 ICT and the US Commercial Service
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frustration acted as the motivation to research this issue further. I hope to supplement my own
testimonial experience with more empirical evidence and rigor. The next section will explore the
theoretical background of economic growth, ICT, and the nature of globalization.
Many benefits can be drawn from increased ICT use on the firm level and the government
level. However, the primary motivation for amending the NEI addresses efficiency problems. The
efficiency of increasing knowledge, communication and total factor productivity with ICT will first
be theoretically discussed. Individual indicators at the firm and state level are provided
subsequently, where I will examine where the largest, most direct, and fiscally manageable
room for improvement lies.
Policy Options - Linking Economic Growth, ICT, and Globalization
My policy options are drawn from a constructed theoretical framework. It suggests the causal
mechanism of ICT investment and recognition of globalization for economic growth. I first consider
theories of general economic development, pertinent to an industrialized nation. I then look at theory
of information flow. This is necessary as the NEI focuses on SMEs who do not have access to
international knowledge and are less competitive than larger firms. To complete the causal
framework, I look at the nature of globalization in our modern world. This section underlies the
necessity of ICT for global competition. However, I refrain from assessing policies regarding foreign
economic relations and foreign stakeholders as this goes beyond the scope and objective of this paper.
After developing this framework, I provide exact indicators of how the U.S. invests and uses
ICT at the domestic and state level, and how they globally compare. These indicators help us assess
how to address issues of knowledge dispersal, social relations, and total factor productivity of an
economy.
Economic Growth
Considering different approaches for explaining economic growth, we must choose a model
that holds implications for a well-developed economy such as the United States. In neo-classical
growth models, the long-term rate of growth is exogenously determined by either interjecting a
variable savings rate (the Harrod-Domar Model) or a rate of technical progress (Solow Model).
However, the savings rate and rate of technological progress remain unexplained and remain a
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constant variable.8 The poor performance of neoclassical theories in illuminating the sources of long-
term economic growth has led to dissatisfaction with traditional growth theory. 9 Any increase in
Gross National Income that cannot be attributed to short-term adjustments in stocks of either labor or
capital are ascribed to a third category, commonly referred to as the Solow residual. This residual is
responsible for roughly 50% of historical growth in the industrialized nations.10 If we consider the
large role that this Solow residual has played in economic growth we can turn to new growth theories
as a more relevant explanation for economic growth in the American context.
New growth theories in economics hold a more endogenous growth approach.11 I apply the
Romer endogenous growth model because it addresses technological spillovers that may be present in
the process of industrialization. As well, endogenous growth theories purport that policy measures
can have an impact on the long-run growth rate of an economy. For example, subsidies on research
and development, education, or information communication technology increase the growth rate by
increasing the incentive to innovate.
These new growth theories emphasize complementarities between several conditions
necessary for successful development. 12 As well, these theories often highlight the problem that
several things must work well enough, at the same time, to get sustainable development under way.
Their concept ofcoordination failure also offers some significant and distinct insight. A coordination
failure is a state of affairs in which agents inability to coordinate their behavior leads to an outcome
that leaves all agents worse off or unproductive. 13 This is solved through interoperability of
communication systems.Are SMEs being provided with complementarities by the NEI? Furthermore,
is the NEI itself supported with complementarities for successful implementation and growth?
The next section addresses a few classic tools for complementarities and interoperability.
Technology of information dissemination is crucial for economic development as knowledge is
considered a complementarity. As well, technology can improve social capital which is defined as
the quality of trust relationships developed through communications adding to economic productivity.
Communication relieves coordination failure. Classic economic growth models emphasize land, labor,
and means of production capital. Our technological tools address the implicit value of social capitaland digital infrastructure.
8 Paul Romer. "Economic Growth." The Concise Encyclopedia of Economics. Liberty Fund, 2007. Print. 4.9, Michael P Todaro and Stephen C. Smith.Economic Development. Boston: Pearson Addison Wesley, 2006. Print. 145.10 Todaro and Smith 145.11 Romer 4.12 Todaro and Smith 145.13 Todaro and Smith 145.
http://en.wikipedia.org/wiki/Subsidieshttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Subsidies8/4/2019 ICT and the US Commercial Service
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Information and Communication Technology- Knowledge and Relationships
We define ICT as the general term that stresses the role of telecommunications in modern
information technology. IT consists of all technical means used to handle information and aid
communication, including both computer and network hardware as well as necessary software. ICT
consists of IT as well as telephony, broadcast media, and all types of audio video processing and
transmission. The expression was first used in 1997 in a report by Dennis Stevenson to the UK
government14
We illustrate how ICT impacts two causal mechanisms of economic growth- knowledge and
relations of economic actors. First, new growth theory emphasizes that economic growth results from
the increasing returns associated with new knowledge. Knowledge has different properties than other
economic goods (being non-rival, and partly excludable). The ability to grow the economy byincreasing knowledge rather than labor or capital creates opportunities for nearly boundless growth.
Second, ICT fosters social capital. Social capital is the stock of trust, mutual understanding, shared
values, and socially held knowledge that facilitates the social coordination of economic activity. It
assesses the quality of communication within a society. This is where the communication facet of
ICT arises.
Knowledge
After determining the importance of both technological advancement and resource
coordination for economic growth, we turn to the arguments of Bush and Oostever. These authors
examine the linkages between material commodity transfers through the space of place and the
movement of information through the space of flows. Linking these two spaces is particularly
challenging in information-poor societies where flows of information, technology and consumer
perceptions back to these areas pass through a black box, limiting clear lines of exchange between
producers and globally connected exporters.
ICT enables efficient and effective communication, as digital tools are fast and designed to
increase clarity. Like technological revolutions before it, the ICT revolution is said to generate
economic growth through large changes in relative prices and the resulting positive feedback and
14Dennis Stevenson.Information and Communications Technology in UK Schools, an independent inquiry. TheIndependent ICT in Schools Commission, 1997 London, UK.
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autocatalytic effects on products, processes, and institutions throughout the economy. 15 The ICT
revolution is distinctive, however, because of the high knowledge intensity of this technology, which
generates exceptionally high levels of externalities and spillovers on a global scale.16
Social Relations Capital
By removing middlemen and other knowledge excluding factors that taint perfect information,
transparency increases and the actors in an economy have greater awareness in their actions. In the
usual imperfect market situations, social ties located in certain strategic locations and/or hierarchical
positions (and thus better informed on market needs and demands) can provide an individual with
useful information about opportunities and choices otherwise not available.
Consumers and business relations become more trusting as well as efficient. Interoperability
of an ICT ecosystem refers to the ability to efficiently transfer and use information uniformly across
organizations, systems or components. It helps link systems, information and processes within and
across enterprises.17Thus, the concept has two important components; (1) it represents resources
embedded in social relations rather than individuals; and (2) the access and use of such resources
reside with actors.
Total Factor Productivity
To further illustrate the positive effects of ICT differing from general technological progress,
Martinez et al. assessed economic growth in the United States from 19761998. Their study allows us
to compare contributions to growth due to ICT and non-ICT capital assets. 18 They disaggregated
factors of production into ICT and non-ICT assets, where specific technological progress is motivated
solely by ICT capital. When the dynamics of productivity are split into specific and neutral
technological progress, the former exerts a positive impact while the latter has a clear negative
effect.19
15 Thomas D Lairson. "The Political Economy of Information and Communication Technologies and EconomicDevelopment." Proc. of International Studies Association, Honolulu, HI. 2005. Print.16 OECD,Employment and growth in the knowledge-based economy, Paris: OECD, 1996.17 Roadmap for Open ICT Ecosystems, 2005, Berkman Center for Internet & Society at Harvard Law School.. 3.18Martinez, Diego, Jesus Rodriguez, and Jose Torres. "ICT-specific Technological Change and Productivity Growth inthe US: 19802004."Information Economics and Policy 22 (2010): 121-29. ScienceDirect. Web. 13 Dec. 2010. 2.19 Martinez et al. 2.
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Behind the small contribution of general technological change, they actually find a negative
impact coming from traditional capital inputs (constructions and structures, machinery and transport
equipment), ICT capital had significant economic growth-enhancement effects (communications
technology and digital hardware and software equipment). We can see how ICT impacts an
industrialized economy such as the U.S. As well, specific technological (ICT) change accounts for
35% of total growth in labor productivity.20 This illustrates the indirect support ICT adds to different
factors of production of an economy.
Globalization
I strengthen my position, of the governments necessity for ICT utilization to increase exports,
by considering the definition of globalization and the consequences of their inaction to adequately
comply. Globalization is an elusive term, making it hard to specify the role that ICT plays within it.
To make any concrete assertions for recommendations based on the global environment, we must
first form a concrete definition. Globalization is defined as the process by which regional economies
integrate through a global political network of communication, transportation, and trade, investment,
capital flows, migration, and the spread of technology.21 Schools of economists, cultural analysts, and
scientists argue that ICT fuels globalization and is the biggest mechanism shaping society.22
This drive towards globalization creates a new set of unique demands on government and
business. If the NEI is looking to SMEs, they should acknowledge that the greatest point of access forthese actors in the global environment is through Internet use. Not only does ICT have endogenous
implications for the domestic economy, it fosters connection with and understanding of foreign
partners.
Hilary Clinton best explains Americas ideals of ICT use in a Foreign Policy article, On their
own, new technologies do not take sides in the struggle for freedom and progress. But the United
States does. We stand for a single Internet where all of humanity has equal access to knowledge and
ideas. And we recognize that the world's information infrastructure will become what we and others
make of it. This challenge may be new, but our responsibility to help ensure the free exchange of
ideas goes back to the birth of our republic. The words of the first amendment to the constitution
20 Martinez et al. 2.21 Jagdish N Bhagwati.In Defense of Globalization. Oxford: Oxford UP, 2004. Print.22 Thomas L Friedman. The World Is Flat: a Brief History of the Twenty-first Century . New York: Farrar, Straus andGiroux, 2005. Print. 121.Roadmap for Open ICT Ecosystems 5.
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[guaranteeing freedom of speech] are carved in 50 tons of Tennessee marble on the front of this
building. And every generation of Americans has worked to protect the values etched in that stone.23
A combination of connectivity, collaboration, access and transparency or openness is
emerging and necessary to compete. There is an intensifying demand for customer-centric services
and real-time information. ICT is evolving and unlocking the efficiencies, standardization and
flexibility needed to propel the transformation of governments and businesses. The norm of
openness reshapes ICT ecosystems, and makes it possible to re-engineer government, rewrite
business models and deliver customized services to citizens. 24 The need to rigorously examine
technology use within the NEI becomes even more pressing as we experience the chaos of Wikileaks;
which has undermined Foreign Service ICT security policies. As openness impacts an ICT ecosystem,
it becomes a catalyst for unleashing newfound comparative advantage, invention, social development
and market opportunities.25Governments and enterprises around the world are embracing ICT use.
In exploring the theory behind the issues of U.S. economic policy, we see two general policy
path options pathsa focus on enhancing domestic levels of ICT at both the firm and state level; or
focusing on 21stcentury exporting and looking beyond the American context to help SMEs reap
greater rewards from the global economy. American foreign relations have many influential and
implicated stakeholders, other than just economic actors. Addressing foreign economic policies is
beyond the intent of this paper. We should first look to improve domestic factors to ensure short-term
economic improvement. The next section will discuss how policies can improve knowledge, social
capital, and total factor productivity in the specific context of the United States.
Policy Options- U.S. ICT Indicators and Applicable Policies
Despite the general view that ICTs entail a new technological revolution, the measured impact
of ICTs on aggregate productivity has been very limited so far and the effects of these forces take a
long time to become visible on the macro-economic level.26 Empirical ICT indicators will hopefully
illuminate areas where appropriate policy measures are required. This is specific within the U.S.
economy as well as their State bureaucracy.
23 Hillary Clinton. "Internet Freedom."Foreign Policy (2010). Web. 13 Dec. 2010..24 Roadmap for Open ICT Ecosystems 6.25 Roadmap for Open ICT Ecosystems 23.26 Martinez et al. 1.
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ICT measures are operationalized and drawn from various sources, at the domestic and global
level, to show specific policy paths. The domestic level is measured by calibrated statistics
formulated by Martinez et. Al, that link overall economic growth in the United States to ICT
investment at the household, firm, and state level. The World Economic Forums Networked
Readiness Index (NRI) provides the measurements for the US in a domestic and global comparative
nature; which measures the propensity for countries to exploit the opportunities offered by
information and communications technology. The NRI seeks to better comprehend the impact of ICT
on the competitiveness of nations. The NRI is a composite of three components: the environment for
ICT offered by a given country or community, the readiness of the communitys ke y stakeholders
(individuals, businesses, and governments) to use ICT, and finally the usage of ICT amongst these
stakeholders. 27
Domestic ICT indicators and policy
The discrepancy between existing technological infrastructure and business usage of ICT
presents a role for government intervention. The Global IT report ranks the US as 9th for the ICT use
in the market environment, 8th in business readiness, and 1st for business usage. Businesses seem to
be fulfilling ICT investment to the extent under their control. The environment to use this ICT and the
personnel readiness for ICT can be affected by government policy.
As well, a longitudinal and international measurement exhibits the declining levels of U.S.business ICT investment. Statistics from the Centre for the Study of Living Standards (CSLS) report
comparing ICT investment gap between Canada and the U.S. businesses are the latest results in an
observed investment gap trend of the past 5 years.
Measured in domestic currency, nominal ICT investment spending in the Canadian business
sector advanced 0.6 per cent in 2009, outpacing that of the United States, which dropped by 3.9 per
cent in the same period. Even taking into account the fact that business sector employment in Canada
decreased significantly less than in the United States in 2009 (-2.5 per cent versus -5.5 per cent),
nominal ICT investment per worker growth in Canada still outperformed that of the United States
(3.1 per cent versus 1.7 per cent). Nominal investment trends among the three ICT components
differed considerably in the two countries, especially regarding communications equipment
27 Soumitra Dutta and Irene Mia. "The Global Information Technology Report 20092010." Proc. of World EconomicForum. Print.
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investment, which rose 2.7 per cent in Canada, but fell 10.3 per cent in the United States. Nominal
computer investment fell in both Canada and the United States in 2009 (-6.8 per cent and -9.8 per
cent respectively) and nominal software investment rose in both countries (4.0 per cent and 0.3 per
cent).28
Policy 1
In terms of knowledge dissemination I look at State provided technological infrastructure.
Obama states, Our technological infrastructure has been neglected, threatening the ability of
American businesses to compete with the rest of the world. The United States once led the world in
broadband deployment, but now that leadership is in question. Wireless networks in many countries
abroad are faster and more advanced.29 Rankings of various national ICT use indicators support this.
In 2010 the US was ranked 21st for overall ICT use, 17th for Internet users, 16th for broadband Internet
subscriptions, 29th for Internet bandwidth. Looking specifically at businesses, they were ranked 17 th
for technological readiness, 12th for technological adoption, 11th for firm-level technology absorption,
and 55th for FDI and technology transfer.30A specific policy measure would include enhancing
public broadband access and infrastructure.
Policy 2
In terms of assessing the quality of communication Weitzner, Associate Administrator for
Policy for the National Telecommunications and Information Administration, highlights that the
Commerce Departments decision to address online privacy and other Internet policy issues stems
from the significant and growing social and economic contributions that the Internet makes to our
lives. For example, domestic online transactions are currently estimated to total $3.5 trillion annually,
and digital commerce is a leading source of job growth. Preserving consumer trust is essential to the
sustainability and continued growth of the digital economy,31 said Weitzner. A specific policy to
increase government regulation of Internet transactions is crucial to restoring trust within the
digital economy.
28Andrew Sharpe and Jean-Francois Arsenault. The Canada-US ICT Investment Gap: An Update. Publication no.2008-1. Centre for the Study of Living Standards, 2008. Print
29 United States,National Economic Council5.30Klaus Schwab. "The Global Competitiveness Report 2009-2010." Proc. of World Economic Forum, Switzerland,Geneva. Print.31 Daniel J Weitzner. "Internet Privacy Policy, User Empowerment and Do Not Track." Speech. Consumer WatchdogPolicy Conference: The Future of Online Consumer Protections. DC, Washington.National Telecommunications andInformation Administration. United State Department of Commerce, 1 Dec. 2010. Web. 10 Dec. 2010.
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Policy 3
The data collected by Martinez et al. is crucial for assessing the total factor productivity
effects of domestic ICT investment. Specific technological change in the US economy over the
period 19802004 is mainly due to technological progress embedded in ICT capital assets. While the
contribution of ICT-specific technological change to productivity growth is about 0.73% points,
which of non-ICT capital assets is only 0.16% points. More interestingly, the contribution of ICT
increases from the mid 1990s, while the contribution of non-ICT capital inputs decreases. 32 One
major implication of this Martinezs paper is that ICTs have different effects on economic growth
depending on what stage the economy is in with respect to the process of introduction and use of new
technologies. The case of the U.S., a pioneering country in the massive use of ICTs, is revealing. In
the first stage, the main positive effect of ICT capital inputs comes from using new equipment linked
to new technologies. More data access for SMEs is the complementary information service to
promote efficiency. Larger firms usually have an R & D department or CTO to address this
information access concern. Policies improving accessibility to data, that larger firms usually
have due to high ICT use, is required as a complementary service of the U.S. Department of
Commerce.My policy analysis will elaborate on how the CIOs move to provide public data centers
is a viable first step to promoting domestic ICT use.
State ICT Integration in Bureaucracy
The Global IT report provides rankings on government ICT use. The political and regulatory
environment of the U.S. ranks 19th, their government ICT readiness ranks 13th, and their government
usage ranks 4th.33 The high ranking of usage may be misleading given testimonial evidence exhibiting
lack of capability or understanding of ICT use within government personnel. However, please see
Appendix A for examples initiatives the CIO has undergone over the past year since their inception.
Policy 4
The Upjohn institute for Employment Research and the National Academy of Public
Administration concluded many measurement issues arising from the growth of globalization,
specifically in their use of statistical knowledge. The research papers highlight critical data gaps and
deficiencies that impede our ability to measure accurately the economic impact of globalization on
32 Martinez et al. 8.33 Soumitra Dutta and Irene Mia 19.
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the U.S. economy, and its workers. Besides spotting limitations of the currently constructed price
indexes; more pertinent to the use of ICT is the issue they identified of data gaps that impede the
U.S.s ability to measure the extent of services off-shoring and the impact of such activity on the U.S.
labor market.34Improved data sharing, among federal statistical agencies is one of the key
recommendations emerging from the conference.
Policy 5
The Department of Commerces internal and external communication is impeded with the
improper use of implemented ICT. As objective and Generation Y observers in their early twenties,
the younger interns of the office reached consensus that there is a shockingly low level of basic
technology knowledge and capability for use. The time our superiors set aside for us to partake in
database training, e-mail training, and digital security training seemed extremely elementary for all
six interns. We were seemingly allotted ten-fold more time and instruction, than needed, for tasks
regarding technology use. Not only are improvements necessary for the efficacy of using existing
technology, but the ability to adapt to new forms of technologyas much was introduced over the four
months we were thereis essential for reducing issues of information redundancy. There is a
difference between teaching how to use individual office systems, and the acumen of interloping
different office systems.
I could provide a plethora of testimonial evidence attesting to this inefficient technology use;
the interns experience; the opinions of various State personnel and businesses we supported; as wellas prominent members of the Foreign Service community. However, the current state of
communication and U.S. diplomatic affairs may be more indicative of overall ignorance towards the
nature of digital technology within office operations. Wikileaks, a non-profit organization that
publishes submissions of otherwise unavailable documents from anonymous news sources and leaks,
recently dispelled more than 250,000 secret and potentially damaging diplomatic cables. Much of the
discussion right now is about the lapse in security, the misuse of the technology. Security experts are
trashing the U.S. for its slack methods of encryption and monitoring. The criticisms are well deserved.
However this is arguably just a reflection of how digitally illiterate the government may be in
understanding the relationship between new technologies, new methods of open communication and
34 Susan N Houseman. Conference Summary. Proc. of Measurement Issues Arising From the Growth of Globalization,DC, Washington. 2009. Print. 3.
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old human nature35Either a private third party or expertly managed, interoperable system
would dispel communication failures. My policy analysis proposes a ready-to implement model to
solve this issue.
Policy 6
Finally the non-receptiveness of new ICT could play detrimental to the productivity levels of
the department and subsequently the efficacy of the NEI. The LexisNexis Technology Gap survey
addresses the generational divide and an authoritative personnels conservative bias towards ICT. The
study examines how technology is used in the American workplace. These findings are indicative of
the nature of the Commerce department, as most employees are former members of the private-sector
workplace.
The survey compared technology and software usage among generations of working
professionals; Boomers (ages 44-60), Generation X (ages 29-43) and Generation Y (ages 28 and
younger). The total sample size was 700 legal and white-collar professionals with 250 coming from
the legal profession. According to the survey: Two-thirds of all Boomers agree that Personal Digital
Assistants (like the Blackberry, for example) and mobile phones contribute to a decline in proper
workplace etiquette, and believe the use of a laptop during in-person meetings is "distracting," less
than half of Gen Y workers agree. Only 17% of Boomers believe using laptops or PDAs during in-
person meetings is "efficient," while more than one third of Gen Y do. Only 28% percent of Boomers
think blogging about work-related issues is acceptable, while forty percent of Gen Y workers do.
36
In order for organizations to ensure maximum efficiency and productivity, technologies that
capitalize on these emerging trends should be implemented. Policies to address these differing
attitudes include: 1) Investing in technologies and workflow solutions that enhance workplace
productivity rather than increase multi-tasking. 2) Establishing clear guidelines around
acceptable uses of technology in the workplace, as well as providing training on new
technologies. 3) Acknowledging and addressing the significant impact of social networking by
investing in professional networking solutions.37
35 "The U.S. Suffers a Colossal Literacy Failure Literacy 2.0."Literacy 2.0. Web. 11 Dec. 2010..36 LexisNexis.New Study Examines Technology Generation Gap in the Workplace. WorldOne Research, 15 Apr. 2009.Web. 11 Dec. 2010. .37 LexisNexis 1.
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Policy Analysis
Seemingly infinite measures arise to improve ICT at the firm and State level. However, many
of these measures go beyond the scope of amending the pre-existing NEI, and its specific goals.
When we return to our original intention of promoting exports and enhancing the efficacy of the NEI,
policy option 3 on the domestic firm level and policy option 5 on the state level are most directly
related to exporting. To further specify real-world solutions, I assert that two initiatives of the CIO
are applicable in the context of the NEI, and can pragmatically address these two policy issuesopen
data access and cloud computing respectively.38 Keep in mind that these two goals address the
short-term efficacy of the NEI, and further adoption of CIO policies within the Department of
Commerce should be long-term objectives. Systemic long-term objectives seem to fall greater
under the mandate of the CIO rather than the responsibility of the Department of Commerce.In short, the CIO aims to help transparency, policy compliance, efficiency, infrastructure,
security and privacy, and effectiveness of the entire U.S. government.39 Two of their specific policies,
falling under the category of efficiency and even targeted at economic development, should be more
integrated into the framework of NEI policies to take greater effect. Open data access plans address
the third option under problems at the firm level. Cloud computing addresses the fifth policy
recommendation, at the State level. Open data access for smaller private firms resolves
complementarity knowledge issues of economic development by helping total factor production.
Cloud computing increases interoperability and increases user-friendly digital communication
systems, which otherwise may seem. Tying back to my theoretical framework, I remind you that
complementarity and interoperability factors are key characteristics of economic development
for the American context (See Economic Growth).Further and specific qualitative details of public
data center access and cloud computing to enhance the capabilities of the government bureaucracy
can be found in Appendix B.
Examining the NEI (See Appendix C), we see that only the eighth and last goal highlights
ICT use. If open data accessibility and cloud computing are integrated as policy measures, they will
provide logistical value and support for implementing the NEI. The seven prior goals can benefit
from the productivity and communication efficiencies if these specific ICTs are implemented at the
Department level.
38Chief Information Officers Council. Web. 13 Dec. 2010. .39Chief Information Officers Council.
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Problems arise when acknowledging the tremendous diversity of what is contained within the
ICT rubric. Policy in support of ICTs in general might not make as much sense as approaches which
target specific technologies. For example, the rationale for regulating cellphones and the particular
approaches taken will be quite different from those regarding Internet use. Actors within the State
who have expert understanding of all facets of ICT use are crucially valuable. Obama seems to be
enriching his bureaucracy with many expert advisors. Or alternatively, the actual target or intent of
policy regarding ICT may be something much more established and prosaic, like preventing
monopolies or price-fixing, than issues that arise from the innovative nature of the technology itself.
A second point about how politicians and policy-makers think about ICT is what might be
termed medium/message conflation, with often ideologically-driven assumptions about ICTs (the
medium) in actuality derived from assumptions about the information that they deliver (that is, the
message) and furthermore, this may be highly coloured by who has access to specific technologies
(the users). 40 For example in Hilary Clintons her earlier (ideologically driven) statement
about openness and transparency, she was conflating medium with message; in her post-Wikileaks
statements regarding prosecuting Julian Assange, she seems to have discovered the difference
between the two.41These are points, however, that apply to the academic and policy literature overall,
so in a sense, this is less a shortcoming in this paper, but part of a grander contentious issue. I stress
that my policy recommendations address the somewhat normative enhancement of innovation and
efficiency of the National Export Initiative.As well, both specific policy recommendations indirectly
address these issues. Public data access can be considered a mass public good, but is simultaneously
regulated and monitored by the State. Cloud computing employs the expertise and ownership of
efficacy to third party providers.
Conclusion
This paper demonstrates ICTs implications on U.S. economic policy. It argues that the U.S.
Governments use of ICT is the greatest and most underestimated agent for leveraging small business
in global trade and revamping the US economy. It specifically discusses how the U.S. government
should take a more holistic approach for using ICT in their National Export Initiative. It argues for an
40 McLuhan 5.41 "Video: Hillary Clinton Attacks WikiLeaks over US Embassy Cables | World News | Guardian.co.uk." The GuardianUK. 30 Nov. 2010. Web. 11 Dec. 2010. .
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ICT policy used in conjunction with the NEI through open data center access and cloud computing
systems.
However, normative questions must be addressed when integrating the use of ICT at any level
of economic activity. As we have seen from the recent Wikileaks scandal, many security questions
are brought to light regarding the governments use of new digital communication technology. As
much as the State should strive to expand their innovation and advantage of ICT use, they must
rigorously assess the viability of individual technologies within the current environment. More
specific study of technology use is needed to expand upon my preliminary suggestions.
America brought in a new President for change. President Obamas overall administration is
slowly, but surely implementing this in regards to ICT use. Hopefully, the continuous and rigorous
audit of his governments efficacy and accountability frees up resources to redirect towards ICT
analysis and investment. Economic implications are just a sliver of potential change we can see with
the rise of Information Communication Technology.
Bibliography
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Bush, S. and P. Oosterveer. 2007. The missing link: intersecting governance and trade in the spaceof place and the space of flows, Sociologia Ruralis. 47(4): 384-99
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Exec. Order No. 13534, 3 C.F.R. (2010). Print.
Friedman, Thomas L. The World Is Flat: a Brief History of the Twenty-first Century. New York:Farrar, Straus and Giroux, 2005. Print.
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Obama, Barrack. "Boosting American Exports." DC, Washington. 11 Mar. 2010. Address.
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Palmer, Doug. "Obama Champions Exports in Overture to Business."Reuters. 27 Jan. 2010. Web. 1Oct. 2010. .
Rampell, Catherine. "Public Jobs Drop Amid Slowdown in Private Hiring." New York Times. 8 Oct.2010. Web. 9 Oct. 2010..
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Switzerland, Geneva. Print.
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Sharpe, Andrew, and Jean-Francois Arsenault. The Canada-US ICT Investment Gap: An Update.Publication no. 2008-1. Centre for the Study of Living Standards, 2008. Print
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Washington.National Telecommunications and Information Administration. United StateDepartment of Commerce, 1 Dec. 2010. Web. 10 Dec. 2010.
Appendix A
Taken from Chief Information Officers Council Website42
The U.S. CIO supports President Obamas goals of greater transparency, accountability, and citizenparticipation in Federal Government through the use of innovative IT strategies. The U.S. CIO worksto ensure information security, protect individual privacy, and save taxpayer dollars by creating aFederal Government that strategically, efficiently, and effectively uses IT to serve and protect U.S.citizens.Governing PrinciplesThe U.S. CIO and the CIO Council establish standards against which the success of all agencyprograms can be measured, including: monitoring the year-to-year performance improvement of Federal Government programs
attracting and retaining a high-performance IT workforce optimizing Federal Government information resources and investments aligning IT solutions with Federal enterprise business processes adopting and sharing best IT management practices
managing risk and ensuring privacy and security
MilestonesSince its inception in 2009, the office of the Federal CIO has launched several initiatives key to thePresidents Open Government agenda, including data.gov, an online repository for access to
Government data, and apps.gov, which guides Federal agencies in adopting cost-efficient,collaborative IT solutions.
President Obama ushered in a new era of government on his first day in office, calling fortransparency and open government in his January 21, 2009, memorandum to heads of executive
departments and agencies. The memorandum states, My Administration is committed to creating an
unprecedented level of openness in Government. We will work together to ensure the public trust and
establish a system of transparency, public participation, and collaboration. Openness will strengthenour democracy andpromote efficiency and effectiveness in Government.
The CIO of each Federal agency, department, or bureau is responsible for meeting the policy and
regulatory goals of their organization and the Federal Government. Relevant laws include:
The E-Government Act of 2002 Federal Information Security Management Act of 2002 (FISMA) Confidential Information Protection and Statistical Efficiency Act of 2002 (CIPSEA) Government Paperwork Elimination Act of 1998 (GPEA) Section 508 of the Rehabilitation Act (29 U.S.C. 794d), as amended by the Workforce Investment
Act of 1998 (P.L. 105-220)
42Chief Information Officers Council. Web. 13 Dec. 2010. .
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Clinger-Cohen Act of 1996 Freedom of Information Act of 1996 (FOIA) Paperwork Reduction Act of 1995 (PRA)
Appendix BCharacteristics of Public Data Access
43
The CIO aims to provide public data access through Data.gov. Data.gov is leading the way indemocratizing public sector data and driving innovation. The data is being surfaced from manylocations making the Government data stores available to researchers to perform their own analysis.Developers are finding good uses for the datasets, providing interesting and useful applications thatallow for new views and public analysis. This is a work in progress, but this movement is spreadingto cities, states, and other countries. After just one year a community is born around open governmentdata.
About
The purpose of Data.gov is to increase public access to high value, machine readable datasets
generated by the Executive Branch of the Federal Government. As a priority Open GovernmentInitiative for President Obama's administration, Data.gov increases the ability of the public to easilyfind, download, and use datasets that are generated and held by the Federal Government. Data.govprovides descriptions of the Federal datasets (metadata), information about how to access the datasets,and tools that leverage government datasets. The data catalogs will continue to grow as datasets areadded. Federal, Executive Branch data are included in the first version of Data.gov.Changes made to Data.gov are available in theRelease Notessection.
Participatory Democracy
Public participation and collaboration will be key to the success of Data.gov. Data.gov enables thepublic to participate in government by providing downloadable Federal datasets to build applications,conduct analyses, and perform research. Data.gov will continue to improve based onfeedback,comments, and recommendations from the public and therefore we encourage individuals to suggestdatasetsthey'd like to see, rate and comment on current datasets, and suggest ways to improve thesite.We are interested in hearing your ideas and comments about Data.gov.
Goal
A primary goal of Data.gov is to improve access to Federal data and expand creative use of those databeyond the walls of government by encouraging innovative ideas (e.g., web applications). Data.govstrives to make government more transparent and is committed to creating an unprecedented level ofopenness in Government. The openness derived from Data.gov will strengthen our Nation'sdemocracy and promote efficiency and effectiveness in Government.
43Data.gov. Web. 11 Dec. 2010. .
http://www.data.gov/releasenoteshttp://www.data.gov/releasenoteshttp://www.data.gov/releasenoteshttp://www.data.gov/dialoguehttp://www.data.gov/dialoguehttp://www.data.gov/dialoguehttp://www.data.gov/suggestdatasethttp://www.data.gov/suggestdatasethttp://www.data.gov/suggestdatasethttp://www.data.gov/suggestdatasethttp://www.data.gov/suggestdatasethttp://www.data.gov/suggestdatasethttp://www.data.gov/dialoguehttp://www.data.gov/releasenotes8/4/2019 ICT and the US Commercial Service
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Data Policy Statements
Public InformationAll datasets accessed through Data.gov are confined to public informationand must not contain National Security information as defined by statute and/or ExecutiveOrder, or other information/data that is protected by other statute, practice, or legal precedent.The supplying Department/Agency is required to maintain currency with public disclosurerequirements.
SecurityAll information accessed through Data.gov is in compliance with the requiredconfidentiality, integrity, and availability controls mandated by Federal InformationProcessing Standard (FIPS) 199 as promulgated by the National Institute of Standards andTechnology (NIST) and the associated NIST publications supporting the Certification andAccreditation (C&A) process. Submitting Agencies are required to follow NIST guidelinesand OMB guidance (including C&A requirements).
PrivacyAll information accessed through Data.gov must be in compliance with current privacyrequirements including OMB guidance. In particular, Agencies are responsible for ensuringthat the datasets accessed through Data.gov have any required Privacy Impact Assessments orSystem of Records Notices (SORN) easily available on their websites.
Data Quality and RetentionAll information accessed through Data.gov is subject to theInformation Quality Act (P.L. 106-554). For all data accessed through Data.gov, each agencyhas confirmed that the data being provided through this site meets the agency's InformationQuality Guidelines.As the authoritative source of the information, submittingDepartments/Agencies retain version control of datasets accessed through Data.gov incompliance with record retention requirements outlined by the National Archives and RecordsAdministration (NARA).
Secondary UseData accessed through Data.gov do not, and should not, include controls over itsend use. However, as the data owner or authoritative source for the data, the submittingDepartment or Agency must retain version control of datasets accessed. Once the data havebeen downloaded from the agency's site, the government cannot vouch for their quality andtimeliness. Furthermore, the US Government cannot vouch for any analyses conducted with
data retrieved from Data.gov. Citing DataThe agency's preferred citation for each dataset is included in its metadata. Users
should also cite the date that data were accessed or retrieved from Data.gov. Finally, usersmust clearly state that "Data.gov and the Federal Government cannot vouch for the data oranalyses derived from these data after the data have been retrieved from Data.gov."
Public ParticipationIn support of the Transparency and Open Government Initiative,recommendations from individuals, groups and organizations regarding the presentation ofdata, data types, and metadata will contribute to the evolution of Data.gov.
Applicability of this Data PolicyNothing in this Data Policy alters, or impedes the ability tocarry out, the authorities of the Federal Departments and Agencies to perform theirresponsibilities under law and consistent with applicable legal authorities, appropriations, and
presidential guidance, nor does this Data Policy limit the protection afforded any informationby other provisions of law. This Data Policy is intended only to improve the internalmanagement of information controlled by the Executive Branch of the Federal Governmentand it is not intended to, and does not, create any right or benefit, substantive or procedural,enforceable at law or in equity, by a party against the United States, its Departments,Agencies, or other entities, its officers, employees, or agents.
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Characteristics of Cloud Computing
Below is from NISTs Cloud Computing Definition (Version 15), available via:
csrc.nist.gov/groups/SNS/cloud-computing/cloud-def-v15.doc
Essential Characteristics:
On-demand self-service. A consumer can unilaterally provision computing capabilities, suchas server time and network storage, as needed automatically without requiring humaninteraction with each services provider.
Broad network access. Capabilities are available over the network and accessed throughstandard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g.,mobile phones, laptops, and PDAs).
Resource pooling.The providers computing resources are pooled to serve multipleconsumers using a multi-tenant model, with different physical and virtual resourcesdynamically assigned and reassigned according to consumer demand. There is a sense oflocation independence in that the customer generally has no control or knowledge over theexact location of the provided resources but may be able to specify location at a higher level
of abstraction (e.g., country, state, or datacenter). Examples of resources include storage,processing, memory, network bandwidth, and virtual machines.
Rapid elasticity. Capabilities can be rapidly and elastically provisioned, in some casesautomatically, to quickly scale out and rapidly released to quickly scale in. To the consumer,the capabilities available for provisioning often appear to be unlimited and can be purchasedin any quantity at any time.
Measured Service. Cloud systems automatically control and optimize resource use byleveraging a metering capability at some level of abstraction appropriate to the type of service(e.g., storage, processing, bandwidth, and active user accounts). Resource usage can bemonitored, controlled, and reported providing transparency for both the provider andconsumer of the utilized service.
Deployment Models: Private cloud. The cloud infrastructure is operated solely for one organization. It may be
managed by the organization or a third party and may exist on premises or off premises. Community cloud. The cloud infrastructure is shared by several organizations and supports
a specific community that has shared concerns (e.g., mission, security requirements, policy,and compliance considerations). It may be managed by the organizations or a third party andmay exist on premises or off premises.
Public cloud. The cloud infrastructure is made available to the general public or a largeindustry group and is owned by an organization selling cloud services.
Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private,community, or public) that remain unique entities but are bound together by standardized orproprietary technology that enables data and application portability (e.g., cloud bursting forload-balancing between clouds).
Service Models: Cloud Software as a Service (SaaS). The capability provided to the consumer is to use the
providers applications running on a cloud infrastructure. The applications are accessible from
various client devices through a thin client interface such as a web browser (e.g., web-based
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email). The consumer does not manage or control the underlying cloud infrastructureincluding network, servers, operating systems, storage, or even individual applicationcapabilities, with the possible exception of limited user-specific application configurationsettings.
Cloud Platform as a Service (PaaS). The capability provided to the consumer is to deployonto the cloud infrastructure consumer-created or acquired applications created using
programming languages and tools supported by the provider. The consumer does not manageor control the underlying cloud infrastructure including network, servers, operating systems,or storage, but has control over the deployed applications and possibly application hostingenvironment configurations.
Cloud Infrastructure as a Service (IaaS).The capability provided to the consumer is toprovision processing, storage, networks, and other fundamental computing resources wherethe consumer is able to deploy and run arbitrary software, which can include operatingsystems and applications. The consumer does not manage or control the underlying cloudinfrastructure but has control over operating systems, storage, deployed applications, andpossibly limited control of select networking components (e.g., host firewalls).
Appendix C
Taken from the Executive Order - National Export Initiative44
Section 1.
Policy. The economic and financial crisis has led to the loss of millions of U.S. jobs, and while theeconomy is beginning to show signs of recovery, millions of Americans remain unemployed orunderemployed. Creating jobs in the United States and ensuring a return to sustainable economicgrowth is the top priority for my Administration. A critical component of stimulating economic
growth in the United States is ensuring that U.S. businesses can actively participate in internationalmarkets by increasing their exports of goods, services, and agricultural products. Improved exportperformance will, in turn, create good high-paying jobs.
The National Export Initiative (NEI) shall be an Administration initiative to improve conditionsthat directly affect the private sector's ability to export. The NEI will help meet my Administration'sgoal of doubling exports over the next 5 years by working to remove trade barriers abroad, by helpingfirms -- especially small businesses -- overcome the hurdles to entering new export markets, byassisting with financing, and in general by pursuing a Government- wide approach to exportadvocacy abroad, among other steps.
Section 3.
National Export Initiative. The NEI shall address the following:
(a)Exports by Small and Medium-Sized Enterprises (SMEs). Members of the Export PromotionCabinet shall develop programs, in consultation with the TPCC, designed to enhance exportassistance to SMEs, including programs that improve information and other technical
44 Exec. Order No. 13534.
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assistance to first-time exporters and assist current exporters in identifying new exportopportunities in international markets.
(b)Federal Export Assistance. Members of the Export Promotion Cabinet, in consultation withthe TPCC, shall promote Federal resources currently available to assist exports by U.S.companies.
(c)Trade Missions. The Secretary of Commerce, in consultation with the TPCC and, to the extentpossible, with State and local government officials and the private sector, shall ensure thatU.S. Government-led trade missions effectively promote exports by U.S. companies.
(d)Commercial Advocacy . Members of the Export Promotion Cabinet, in consultation withother departments and agencies and in coordination with the Advocacy Center at theDepartment of Commerce, shall take steps to ensure that the Federal Government'scommercial advocacy effectively promotes exports by U.S. companies.
(e) Increasing Export Credit. The President of the Export-Import Bank, in consultation with othermembers of the Export Promotion Cabinet, shall take steps to increase the availability of
credit to SMEs.
(f) Macroeconomic Rebalancing. The Secretary of the Treasury, in consultation with othermembers of the Export Promotion Cabinet, shall promote balanced and strong growth in theglobal economy through the G20 Financial Ministers' process or other appropriatemechanisms.
(g)Reducing Barriers to Trade. The United States Trade Representative, in consultation withother members of the Export Promotion Cabinet, shall take steps to improve market accessoverseas for our manufacturers, farmers, and service providers by actively opening newmarkets, reducing significant trade barriers, and robustly enforcing our trade agreements.
(h)Export Promotion of Services. Members of the Export Promotion Cabinet shall develop aframework for promoting services trade, including the necessary policy and export promotiontools.