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Connection Technologies in U.S. Foreign Policy

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Connection Technologies in U.S. Foreign Policy: An Overview of 21st Century Statecraft & Internet Freedom

Executive Summary

Within the next decade, over 90 percent of all people on earth will own a mobile phone, tying the world together in a single information and communications network. The rapid growth of this network is changing every part of our lives and our societies, and is putting incredible power into the hands of individuals to understand and impact the world around them. For the U.S. Department of State, our increasingly interconnected world presents both new opportunities and challenges different than those faced in the 20th century.

“21st Century Statecraft” is a new mode of thinking at the State Department that understands the world as a networked place, and sees an opportunity to embrace the technologies that are tying together the world’s people. Over the past 18 months, the State Department has taken advantage of the global network to conduct public diplomacy, strengthen civil societies, improve security and promote economic development around the world.  More broadly, the objective of this new strategy is to give newfound voice to individual people in global affairs.

Based on this view of the global network as a powerful tool for connecting people across borders, the State Department came to see online rights as equal in importance to their offline analogues. Freedoms of expression, assembly and commerce can hardly be imagined in the 21st century without their extension to the online sphere. In January, 2010, Secretary Clinton laid out a vision for “Internet Freedom,” arguing that the defense of online liberties must be seen as integral to the defense of American values, strategic objectives, and economic goals.

This paper is an overview of the State Department’s use of new technology in the conduct of U.S. foreign policy, with a focus on the “21st Century Statecraft” and “Internet Freedom” initiatives. Not intended to be comprehensive or critical, this paper attempts to define and clarify these initiatives and the arguments supporting them, and offer a platform for further debate. These are new, evolving but crucially important issues, and informed conversation about the role of technology in our world is critical if these technologies are to be a positive force in history.

Tech@State: Mobile Remittances

On Monday at the State Department, I joined a couple hundred innovators, policymakers, entrepreneurs, and thinkers at Tech@State: Mobile Money, which explored mobile commerce and its applications throughout the world.

One of these emerging uses lies in the field of remittances, championed by Bill Barhydt, founder and CEO of m-Via — the first international mobile remittances company based in the U.S. In a nutshell, his business allows users to send and receive micro-payments using their mobile phones, creating “mobile wallets” which allow recipients to decide where, when, and how much they withdraw.

M-Via has enjoyed remarkable success in its roll-out phases, with 15% week-on-week growth in participation and nearly four times as many remits compared to conventional snail-mail or branch-banking methods. And although m-Via currently operates with Mexico, Barhydt told us that the program will expand to sixteen more Latin American countries by the end of this year.

Three take-away words from yesterday’s conference easily explain m-Via’s uncommon success: convenience, security, and interoperability.

Convenience: Barhydt’s company saves users valuable time and money. The conventional process — primarily mailing cash or wiring via Western Union — consumes too many resources for both parties, who must have a credit-worthy bank account, time to fill out paperwork or visit the post office, and money to cover associated fees and travel costs. m-Via eliminates these issues. Once an SMS transaction is sent, all receivers need to do is reply, enter a personal code, and visit one of the tens of thousands of partners, retailers, and compatible ATMs stationed throughout the country to withdraw funds from their mobile wallet.

Security: In one rural town Barhydt visited during his recent trip to Mexico, wise families won’t make the trip to the bank to pick up remittances on Tuesdays. Thieves know, he told us, that most families withdraw remittances on Tuesdays, making the trip a dangerous outing. Considering that migrant workers send larger amounts on fewer occasions to save money, families feel at-risk picking up and carrying large sums of cash. m-Via allows recipients to take shorter trips to withdrawal facilities and to only take out as much as they need, leaving the rest in their “mobile wallet.”

Interoperability: Where m-Via shows the most promise is in its infrastructural capacity to function with major interbank networks (that Cirrus or Interlink logo on the back of your bank card). In other words, m-Via isn’t trying to get users to switch banks, change carriers, or use certain ATMs; on the contrary, the goal is to make the service as widely available and accessible as possible.

Contrast this to mobile money in the Philippines, where remittances comprise 11%, or $15.8 billion, of the country’s GDP. In this space, Globe GCASH and Smart Money compete heavily for mobile money consumers, making them use each company’s proprietary financial system rather than focusing on compatibility (although it must be mentioned that the latter recently reached an agreement with MasterCard). These “low-interoperability, highly competitive landscapes”, said Barhydt, make the mobile money ecosystem fragmented and inefficient.

m-Via’s success is magnified in light of the daunting obstacles facing the mobile micro-payment marketplace. The first, Barhydt explained, is the congested and obsolete financial regulatory process which stifles a small 35-strong company such as m-Via and absorbs too many resources. Another more serious issue, raised by Obopay CEO Carol Realini, is the fierce opposition mobile money start-ups encounter by powerful and established mobile operators in foreign markets. Indeed, Barhydt echoed that América Móvil, Mexico’s largest mobile provider led by mega-billionaire Carlos Slim, has given m-Via a hard time getting a foothold in the marketplace.

Despite these obstacles, m-Via’s business model seems to be working, primarily because he’s tapped into the relatively untapped market of mobile remittances — a $300-billion-a-year industry involving nearly 200 million migrants worldwide. And since users can send and receive money without a bank account, the program provides a great option for the marginalized unbanked population. All said and done, m-Via joins a fleet of new companies set to prove how mobile technology, when done right, can be leveraged to the benefit of millions.

Phony Democracy and the Internet’s Influence

The Post has published a couple opinion pieces in the past couple days– one from Fred Hiatt, and a column by Anne Applebaum– both addressing the state of democracy in the world. Applebaum applauds Secretary Clinton for her appearance at the Community of Democracies in Krakow, and issues a call for full-throated support of democracy to return as an objective for American foreign policy.

Hiatt riffs on the work of Freedom House, observing that the forward march of freedom, after decades of remarkable progress, has ground to a halt. In recent years, we have seen the tide recede, with basic freedoms curtailed and many democratic governments slipping away from basic democratic values like rule of law, press freedom, and open markets. Hiatt blames this regression on repressive governments learning from past mistakes and evolving to be smarter and more effective:

Dictators have learned from each other to stamp out any buds of independent civil society by means of tax laws and supposedly neutral regulation. With China in the lead, they learned not only to neutralize the World Wide Web but to turn it into an effective weapon for propaganda, tracking and repression of their own citizens, and attacks against democratic rivals. Taking advantage of their control of television, they mobilized ideologies of nationalism and anti-terrorism to undermine the rhetoric of freedom…

Three assertive powers — China, Russia and Iran — not only resist democratization but actively seek to disseminate their model of authoritarian rule in their spheres of influence.

I think Hiatt is quite right that there is a new trend in authoritarianism, and one that is gaining momentum. But one of the funny things about this resurgence of authoritarianism is that, unlike the communist states of the 20th century, these autocrats aren’t trying to win on the power of their argument. Really, democracy can already boast rhetorical victory, and the fact that these autocrats hold power in part by perpetrating a charade of democracy is a testament to that. As Applebaum writes:

Countries as disparate as Russia, Venezuela and Iran have become adept at using the rhetoric of “democracy” — along with faked elections, phony political parties, even state-controlled “civil society” organizations — to deflect pressure for change.

These prosperous yet undemocratic states like Iran, Venezuela, Russia, and China offer the trappings of democracy, with few of the freedoms. Their ideology is a daunting competitor, and developing countries in Latin America, Africa and Asia face a choice between developing as open, free-market democracies, or as closed, statist autocracies. Increasingly, countries are sliding in the wrong direction.

ChinaIn the quote above, Hiatt cites control of the internet as a powerful tool for manipulation and repression by these authoritarian governments. And in truly, madly, deeply authoritarian states like China, North Korea, Belarus, or Syria (or the other 16 countries that grace the pages of Foreign Policy’s review of the 20 least free places on earth), that’s true. But I think that internet and mobile networks actually make it harder for states to put on the “charade of democracy” that lets modern authoritarian governments legitimize themselves to their own people and to international observers.

Up until last June, Iran’s Islamic Republic was a prime example of a repressive, dictatorial government that managed to be seen as legitimate by many of its own people and many in the Islamic world thanks, in part, to a machinery of democracy that they operated. But when it didn’t produce the result they wanted– the wrong guy won the presidential election– the machine started working against them, with the relative free speech and free association they permitted on internet and mobile networks helping to organize an opposition movement.

Iran cracked down, hard. The government gave up its claim to democratic legitimacy, and the state has been pushed out of the middle ground into a position where everyone can see the regime’s true nature. Increasingly in the coming years, new connection technologies will force governments in this phony middle ground to make a choice. With powerful tools for organizing, advocacy and communication in the hands of every individual, you can’t fake democracy. Elections are easier to monitor, movements are easier to organize, and the truth has a lot more routes to the people.

Some countries will follow Iran’s path: give up their claim to democratic legitimacy and tightly control freedoms of speech and assembly on ICT networks. For other governments, that may not be worth it, or may not be possible, and we may see some developing countries, faced with a fork in the road, taking the path toward openness. As these technologies make phony democracy impossible, countries will have to choose their course, and if anything, we can surely expect the chasm that divides open and closed societies in the 21st century to grow still deeper and wider.

Pakistan Quashing Net Freedoms, Citizens Speaking Out

Yesterday, on orders from a Pakistani court, the Pakistani Telecommunications Authority (PTA) blocked access to Facebook. The move was in response to a page on the site called “Everybody Draw Mohammed Day,” exhorting Facebook users to draw depictions of Mohammed, in the purported hope of spurring debate about Muslims’ objection to images of the founder of their faith. Today, the PTA expanded their ban to include Flickr, Wikipedia, and YouTube, citing a rise in “objectionable content.”

Twitter, however, has remained online, and many of Pakistan’s tech-savvy have been venting frustration there. Shoaib Taimur (@shobz) captured the basic sentiment of the Twitterati in one remark:

note to everyone: I oppose the ban on websites. I dont endorse Blasphemy but curtailing our freedom of speech is too much #fb

The Facebook group is broadly considered to be a tasteless and tactless effort, but the ham-handed response by the Pakistani courts and the PTA is worse. Huma Imtiaz (@HumaImtiaz), a Pakistani journalist, sees the work of Islamic hard-liners in the action of the government. In a blog post, she argues that the PTA has previously shown great ability to block individual pages showing content that would be damning to the Pakistani government, but is now responding with blanket censorship to appease a radical minority.

Sabeen Mahmud (@sabeen) and Dr. Awab Alvi (@DrAwab) organized a press conference this afternoon to speak out against censorship. As Mahmud tweeted later:

I have been insisting that the outrage needs to be about Internet censorship not FB. @kidvai

The press conference quickly devolved into an accusatory shouting match, with the media taking the side of the government. As Dr. Alvi tweeted afterward:

Safely home Sad experience, our point we condemn cartoon caricature but Not a blanket ban on websites, became issue of muslim non-muslim

And Mahmud followed, sarcastically:

>> Well done mainstream media. You outdid yourself today. To think we marched on the streets for your freedom.

Oh wait, I remember now! You thought I shouldn’t have expressed outrage and should have watered down my stance >>

It’s heartening to see individuals standing up against censorship for their freedom of speech and freedom to information. What’s happening in Pakistan right now is a prime example of the danger the internet faces of losing its open, global nature, and becoming a series of national networks, subject to censorship, borders, and the whims of policymakers. Some of Pakistan’s Twitterati predict the bans will be lifted in the coming days, and I hope they’re right.

It’s nearly midnight in Karachi now, but I expect these individuals and this situation will be active and exciting to follow tomorrow. On Twitter, I’d recommend following @sabeen, @DrAwab, @HaroonRiaz, and @HumaImtiaz for good, regular (English-language) updates.

Alec Ross on How the Internet Will Shape Open & Closed Societies

We had a great time yesterday with Alec Ross, who came to talk about how connection technologies are shaping societies around the world. He began with the argument that, in the 21st century, the major fault line dividing countries will fall between open and closed societies– rather than the right-left division that defined the 20th century. He offered a compelling historical perspective on the open-closed divide, going back more than two millennia to contrast the progress and vibrancy seen in societies with open, tolerant attitudes, with the intellectual stagnation of closed societies.

He went on to argue that 2009 was the worst year for the internet that we have seen, as far as openness and freedom of information. Increasingly, states see the internet as a force they can control– and will create something like a national intranet to filter out unwanted content. Turkey, Australia, Italy and others have all shown hesitation to embrace a free and open internet. While the global network does hold great potential for promoting openness and freedom, some states are becoming increasingly savvy at using the same technologies to stifle freedoms of expression and information.

Ross concluded by saying that the greatest implications in the open vs. closed debate will be in developing countries.  Latin America, Africa and Asia are now determining what the internet will look like in their own countries, and their decisions will determine whether their societies benefit from the opportunities afforded by the global network, or whether their poverty is perpetuated by shutting off freedom of expression.

A video of Ross’ talk is here (with a full version, including Simon’s intro and the Q&A, coming soon):

I couldn’t agree more with Ross, and all I’ll add now is an observation that the greatest danger posed by China’s censorship may not be domestic, but rather in the example it sets for other countries, particularly in the developing world.  China is offering a whole new model of authoritarianism– the Chinese government has managed to be economically vibrant and geopolitically successful, without relaxing their firm grip on the country.  As poorer countries set out on a path toward development, China offers an unfortunately compelling model for leaders loath to give up any of their power. I applaud the State Department in their efforts to make an even more compelling case for a free and open internet.

The Practical Quesitons of Internet Freedom

Well, I just wrote a long blog post and then accidentally deleted it. But it’s probably just as well, since it was basically a less-good summary of Ethan Zuckerman’s recent essay about the merits and limitations of circumvention technologies– tools that allow people in repressive states like China and Iran to get around their censors by using a remote server to mask their identity– and, more broadly, about how we will actually go about the business of promoting internet freedom around the world.

Point is, go read the post.  But I will quote here a couple of my favorite passages. Here, he lays out the case for internet freedom in deeply convinving language:

I think much work on internet censorship isn’t motivated by a theory of change – it’s motivated by a deeply-held conviction (one I share) that the ability to share information is a basic human right. Article 19 of the Universal Declaration of Human Rights states that “Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.” The internet is the most efficient system we’ve ever built to allow people to seek, receive and impart information and ideas, and therefore we need to ensure everyone has unfettered internet access. The problem with the Article 19 approach to censorship circumvention is that it doesn’t help us prioritize. It simply makes it imperative that we solve what may be an unsolvable problem.

And then, at the end, Zuckerman offers a few ideas that begin to answer the question of how we can actually support internet freedom. These three struck me as particularly right, and you may hear me riffing on these themes in coming weeks:

- We need to shift our thinking from helping users in closed societies access blocked content to helping publishers reach all audiences. In doing so, we may gain those publishers as a valuable new set of allies as well as opening a new class of technical solutions.

- If our goal is to allow people in closed societies to access an online public sphere, or to use online tools to organize protests, we need to bring the administrators of these tools into the dialog. Secretary Clinton suggests that we make free speech part of the American brand identity – let’s find ways to challenge companies to build blocking resistance into their platforms and to consider internet freedom to be a central part of their business mission. We need to address the fact that making their platforms unblockable has a cost for content hosts and that their business models currently don’t reward them for providing service to these users.

- The US government should treat internet filtering – and more aggressive hacking and DDoS attacks – as a barrier to trade. The US should strongly pressure governments in open societies like Australia and France to resist the temptation to restrict internet access, as their behavior helps China and Iran make the case that their censorship is in line with international norms. And we need to fix US treasury regulations make it difficult and legally ambiguous for companies like Microsoft and projects like SourceForge to operate in closed societies. If we believe in Internet Freedom, a first step needs to be rethinking these policies so they don’t hurt ordinary internet users.

China’s Censorship and Information Freedom

The Chinese government has taken some umbrage at Secretary Clinton’s speech on internet freedom last week. The Secretary, to be sure, called China out for censoring the internet, but she couched that criticism in pretty cozy language:

The internet has already been a source of tremendous progress in China, and it is fabulous. There are so many people in China now online. But countries that restrict free access to information or violate the basic rights of internet users risk walling themselves off from the progress of the next century. Now, the United States and China have different views on this issue, and we intend to address those differences candidly and consistently in the context of our positive, cooperative, and comprehensive relationship.

Ma Zhaoxu, a spokesman for the Chinese foreign ministry, was less friendly in his response:

The US attacks China’s internet policy, indicating that China has been restricting internet freedom. We resolutely oppose such remarks and practices that contravene facts and undermine China-US relations.

China’s internet is open. China is a country with the most vibrant internet development. By the end of last year, China had 384 million internet users, 3.68 million websites and 180 million blogs. China’s Constitution guarantees people’s freedom of speech. It is China’s consistent policy to promote the development of internet. China has its own national conditions and cultural traditions. It supervises internet according to law, which is in parallel with the international paractice…

We urge the US to respect facts and stop attacking China under the excuse of the so-called freedom of internet.

Once we’re past the PRC’s spurious claims about how free their internet is, we can see this in the context of a much bigger picture. Much like our ongoing spats over Tibet, Taiwan and human rights, the Chinese see internet policy as a purely domestic matter, and take criticism of their policy as an affront to their sovereignty. Given our persistent failure to affect China’s behavior on any other sovereignty issues, we’re likely to continue receving nothing but hostility when we bring up internet freedom.

But China’s trucluence shouldn’t be taken as a reason to shut up about internet freedom and censorship. As the Secretary made clear in her speech, freedom of information is at the heart of both our economic prosperity and our national security. Deeper than that, freedom of information is– in itself– a core value of American society.

The progress of freedom around the world has been swamped because developing countries see China as a living example that economic success can be achieved without relaxing the grip of authoritarian rule. For the first time in decades, perhaps centuries, freedom is in retreat around the world. Now more than ever, America must stand as a beacon of liberalism and an exemplar of the power of openness.

We may not get the needle to move on censorship in China, but we must be vocal in support of information freedom– an unambiguous good– and in our criticism of those who stifle liberty anywhere on the globe.

Calling on Chinese Bloggers

The President is in Tokyo today, and will be in China for the first half of next week.  In advance of the trip, our State Department hosted simultaneous press conferences in Beijing, Shanghai, and Guangzhou for audiences composed primarily of bloggers– a first for the U.S. in China. The attendees– a mix of English- and Chinese-language bloggers– were able to openly ask questions and comment on China’s internet restrictions, and several bloggers live-Tweeted the proceedings.

Obama Air Force OneThis is yet another example of the very smart 21st Century Statecraft being plied by the Clinton Department of State. Rather than limiting ourselves to interacting strictly with the governments of foreign countries, we can engage directly with people around the world. By lending credence to China’s bloggers, we help them in their effort to become a respected and efficacious voice for change in their own country. Even in cases in which our own objectives don’t quite line up with the ideals of the bloggers themselves, empowering a multitude of voices is a big step in the right direction.

We do, naturally, seem to be getting a bit of pushback from Beijing. When he stops in Shanghai next week, President Obama is hoping to hold a town hall meeting with Chinese youth in his typical free-flowing, agenda-free format.  Rumors abound that the Chinese and U.S. officials are having some trouble agreeing on the terms for the event, and it may be scuttled as a result. Fine. I, for one, would rather see the town hall ditched than see a phony compromise event in which the attendees have no freedom to speak their mind.

India Bans Pre-Paid Mobiles in Kashmir – Security or Suppression?

For eight years, the Indian government dragged its feet until, in 2003, it finally permitted mobile phones in conflict-torn Kashmir. Intelligence officials had feared that Kashmiri and Pakistani militants would use the phones to plan attacks on Indian army outposts throughout the region, but in ’03 they relaxed the ban, and the past six years have been the most peaceful since the conflict began in 1989. Causation? Probably not. But correlation, anyway.

Srinagar Cell PhoneLast week, the Indian government walked back on technological freedoms in Kashmir, banning pre-paid mobile connections. In Kashmir, as in much of the developing world, pre-paid is a popular option thanks to its known costs, and low commitment; the new ban will take phones out of the hands of 3.8 million Kashmiris. Unsurprisingly, hundreds of Kashmiris have taken to the streets of Srinagar, the capital city, to protest the law in recent days.

The stated reasons for the prohibition are that mobile vendors are not conducting proper background checks on new subscribers, and that militants are using mobile phones to detonate bombs– a practice observed in Iraq and Afghanistan in recent years. I suspect the actual reasons are considerably more Machiavellian.

Srinagar is one of the most heavily-militarized cities in the world, and the dense presence of Indian troops has led to frequent clashes between Kashmiri civilians and the military. As the BBC documented earlier this year, young Kashmiris have been using their cell phones to bear witness to the disproportionate, often unprovoked violence of the Indian army. With a camera phone in every hand, every citizen is a journalist, and the explosion of photos, videos and other first-hand accounts of the violence in Kashmir has brought images of the violence to the world.

What’s more, the Indian intelligence services have met with some success finding and killing militants by monitoring the cell phone conversations of Kashmiris. The consistency and higher background-check requirements for post-paid cell phone plans makes it much easier to monitor those subscribers.

It’s my strong suspicion that the pre-paid ban in Kashmir has more to do with suppressing critical citizen media and monitoring civilian phone conversations than it does with preventing phone-bomb attacks. The ban consists of a suppression of basic freedoms and a violation of privacy in an already repressed state. Further, the government is denying citizens a valuable tool for economic development and access to the global ICT network– increasingly a fundamental right in itself.

FD: I spent some time reporting in Kashmir. My views are certainly informed by that experience. My reporting is published here.

Life Tools & Cheap Phones Come to Indonesia

Nokia PhonesNokia sells more handsets than any other manufacturer in the world, but they have never really caught on in the United States.  Rather, they make their bones selling simple, cheap, virtually indestructible phones in Europe and in much of the developing world. 

To avoid getting pigeonholed in this less-lucrative corner of the market, Nokia has increasingly been moving into offering services built into their handsets. A year ago, they launched Nokia Life Tools in India– a suite of applications meant particularly for phone users in rural, disconnected areas, to give them access to agricultural information, educational services, and entertainment media. 

The services were evidently a hit, as Nokia is now rolling out the same Life Tools in Indonesia, starting later this year. The tools, which run off a graphically rich, multilingual interface, help users by enabling access to weather forecasts and market prices for their produce, test preparation and English-language training, and music, jokes, and movie reviews.

In addition, Nokia just announced five new low-cost phones intended for rural environments, including their cheapest model to date. The $30 Nokia 1280 has a slightly shorter battery life than its predecessor– 8.5 instead of 9 hours– but it has other built-in features that make it a useful tool for a typical villager, including a flashlight and an FM radio. My favorite aspect is that the new phone enables five separate phone books; in many poorer areas, phone-sharing is an increasingly common way for people to stay connected, and the separation of phone books is a feature that– irrelevant in the US– makes the phone more valuable, and more functional for a user in rural Indonesia. Another great insight from Jan Chipchase and his colleagues at Nokia.