Challenges and opportunities
in the Digital World:
Brazil perspective
Virgilio A. F. Almeida
National Secretary for Information Technology Policies
Ministry of Science, Technology and Innovation
São Paulo, September 2015
Warning:
NO MATTER WHAT THE CURRENT SITUATION IS, ONE
THING SEEMS CLEAR: THE FUTURE WILL BE EVEN MORE
DIGITAL.
Talk Outline
• Digital economy
– Impact on social, industrial and political issues
– quick and disruptive changes
– impact of digital on jobs and economic prosperity
• Digital economy in Brazil
– Facts and figures
– Legal & regulatory aspects
– Government programs for ICTs
• Brazil and Germany: opportunities in the digital world
Digital technologies are key for the future agenda
of social, industrial, economic, and political
issues.
Digital economy: quick and disruptive changes
What is the impact of digital on jobs and economic prosperity?
700.000 km
without incident!
Digital Brazil: facts and figures
Internet - economy
Impact of IT on the Brazilian Economy
2013*
Information CommunicationTechnology (ICT)
US$ 162 billion
Information Technology
US$ 61.6 billion
9º
Russia | US$ 71 B
1º
USA | US$ 985 B
2º
Japan | US$ 319 B
10º
Italy | US$ 70 B
3º
China | US$ 270 B
11º
Australia | US$ 69 B
4º
UK | US$ 164 B
12º
Mexico | US$ 55 B
5º
Brazil | US$ 162 B
13º
Spain | US$ 54 B
6º
Germany |US$ 149 B
14º
Korea | US$ 52 B
7º
France | US$ 118 B
15º
India | US$ 51 B
8º
Canada | US$ 96 B
Other | US$ 903 B
7% of
GDP
Brazil: society open to new technology
1.2 Millon IT professionals
34 Brazilian companies ranked in the Global Fortune 2000
40.9 Million broadband access
2.4% of the IT world market share
3rd ranked in the world PC market
49.6% share in Latin America
218 Million mobiles
7th biggest internal market of ICT
5th world mobile market
81.5 Mn of Internet users
65 Million Facebook users – 2nd
33.3 Mn Twitter users – 2nd
4 Million on Flickr - 2 Mn on LinkedIn
29 Million on Orkut - 5 Million on Skype
Sources: ABINEE, ABES, BRASSCOM, IBGE, 2010.
Banking transactions in 2014: growth of mobile banking
Billion of transactions
TACC
‘10-’14
+14%
+13% a.a.
46
Mobile
12%
40
36
32
4%
5%
4%
4%
28
1%
3%
4%
2%
4%
4%
11%
Correspond.
+6%
Contact Center
-1%
Agências
-2%
3%
6%
3%
+209%
8%
10%
13%
POS
+13%
21%
ATM
+5%
41%
Internet
13%
12%
13%
14%
12%
23%
13%
26%
27%
29%
36%
2010
Fonte:
39%
2011
39%
2012
41%
2013
+17%
2014
Pesquisa FEBRABAN de Tecnologia Bancária 2014; Análises Strategy&
2
9
Brazil: banking investments in IT in 2014 – 11.9 billion US$
Despesas e Investimentos em Tecnologia do Sistema
Financeiro (em bilhões de USD - 2014)
178,8
Total de gastos
em TI pela indústria bancária: USD351
Bi
(2014)
36,9
22,8
24,3
ALE
CHI
40,3
17,2
1,2
1,8
CHI
ARG
4,1
5,6
7,7
RUS
MEX
IND
11,9
BRA
FRA
INGL
Participação do
(1)Setor Financeiro no Total de Gastos
com TI do País (% do total de gastos com TI – 2014)
17%
CHI
18%
ARG
16%
16%
RUS
MEX
19%
IND
EUA
Total de gastos
em TI no Brasil:
USD 59 Bi (2014)
18% 18%
BRA
JAP
FRA
17%
17%
ALE
CHI
19% 17%
INGL
JAP
18%
EUA
Nota: (1) Incluindo Bancos e Seguradoras; Fonte: Pesquisa FEBRABAN de Tecnologia Bancária 2014, Gartner, Análise Strategy&
30
Internet of Things: data
collection
Internet Regulatory Framework
 1995: The Internet Steering Committee – CGI.br
 2009: Principles for Internet use and governance
 2011: Marco Civil – The Civil Rights Framework for the
Internet, approved by Congress in 2014.
 2014: NETmundial
 Personal Data Protection Bill (*)
Marco Civil:
The Civil Rights Framework for the Internet
• Defines principles, rights and responsibilities for citizens, companies
and government agencies.
• It articulates the interconnection of technological and legal codes
• Process:
–
–
–
–
Participatory
Bill proposed by Ministry of Justice, inspired by CGI Charter of Principles
2009: online consultation process and public debate on the internet
Open source platform created by Ministry of Culture: Digital Culture, received
2000 suggestions from institutions (eg.: Globo, Federal Police, etc) and
citizens.
• Law sanctioned by the President on April 23, 2014: No.
12.965/2014
Information Technology:
Economic Prosperity and Brazilian Society Needs Depend on Digital
DATA, ALGORITHMS, SOFTWARE AND SENSORS
Public safety
Education
Healthcare
Sustainability
Energy
Transport &
Cities
Emergency and
Disaster
Response
Innovation
DATA, ALGORITHMS, SOFTWARE AND SENSORS
OVERVIEW OF THE BRAZILIAN PRIORITIES
FOR INFORMATION TECHNOLOGY:
- Components and Semiconductors
- Systems and Devices (hardware)
- Software and Services – TI Maior
- Advanced IT infrastructure
Human Capital Formation for IT and Computing
• Graduate Studies
– 69 graduate programs in Computer Science in Brazil (7 world-class programs)
– 25 PhD programs and 67 MSc programs in Brazilian universities
– 1200 MSc and 200 PhDs per year
• Undergraduate
– More than 2000 undergrad. programs: Computer Science, Information
Systems and Computer Engineering and Computer Technology
– More than 300.000 students enrolled in undergraduate computing and IT
courses
• IT and Computing Jobs
– There are more than 1.7 million jobs (estimated number for 2013)
– 750 thousand jobs will be created until 2020
Government Programs for the IT Industry
Mechanisms and policies to enhance competitiveness of IT and
software industry and strengthens the IT base in Brazil
1) Federal incentives Local Manufacturing
• IT Law (Lei de Informática) – Law 8.248, de 1991 (for ICT manufacturers)
• Certificate of Hardware Product Developed in Brazil (Portaria 950
• Law “do Bem” – Law 11.196, 2005 – Incentives and Grants for R&D
• PADIS - Law 11.484, 2007 (semicondutores and displays – R&D included)
• Software Law: payroll tax exemption, 2011
2) Funding for R,D&I
• BNDES (Brazilian Development Bank)
• FINEP
•Private funds (Venture Capital)
3) Fellowships for R,D&I
• CNPq
NATIONAL STRATEGY FOR SOFTWARE AND
IT SERVICES – TI MAIOR
- Digital Ecosystems
- Start Up Brazil
- Human Capital Formation for IT
- Attraction of Global R&D centers (IBM, Google,
GE, Microsoft, SAP, Intel, EMC, Huawei and Baidu)
-…
•Total public investments: 500 million of reais
•Private investments: 700 million reais (as of April/13)
START-UP BRAZIL
In numbers
STARTUPS
ACELERATORS
2.855
3
Call for
participation
PROPOSALS
2+2
80%
NACIONAl
20%
INTERNACIONAL
(5%~6%)
183
STARTUPS
Funded by the Program
(4 groups)
Call for proposals
Brazil and Germany: opportunities in the digital world
Brazil and Germany: exploring the possibilities of
collaboration
• Premise: some characteristics of the digital Brazil may be
useful for a Germany-Brazil collaboration
–
–
–
–
–
–
–
–
Size of the Internet market in Brazil
Modern Internet governance system in Brazil
Diversity of the Brazilian Internet sector
Geopolitical role of Brazil in Latin America
Strong graduate programs in Computer Science & Engineering
European mindset of the Brazilian culture
Strong German manufacturing companies in Brazil
Germany and Brazil: joint experimental ``testbed’’ for new digital
technologies
Common Challenges
Brazil and Germany: exploring the possibilities
• Software and systems for advanced manufacturing
• Global Internet technologies
• Global Internet Governance
• Cybersecurity: multistakeholder approaches
• Startup Programs
Can other international negotiations leverage
international cooperation on cyber security?
• Cyber Threats
–
–
–
–
Cyber war: state actors
Economic espionage: state ctors
Cyber crime: non-state actors
Cyber terrorism: non-state actors
Multiple sectors of society
• Evolution
– As cyber threats alliances, tactics and technology evolve, the categories
will increasingly overlap -> multistakeholder organizations
• Examples:
– Sony attack;
– Fighting Spam the Multistakeholder Way – A Case Study on the Port 25/TCP
Management in the Brazilian Internet;
– Cyberspace governance initiatives lag behind the evolution of the digital
world.
Cyber-defense and Multistakeholder Models
Agenda for Digital Brazil: 2015-2018
Main Areas
Digital
Society
Competitiviness
Government as
Plataform
Technological and Digital Sovereignty
Crosscutting Initiatives
Conclusion
• Cyberspace governance is a process under construction;
• Need of innovation solutions for global governance
processes for a connected world;
• Cybersecurity initiatives require the participation of all
sectors of the society;
• Multistakeholder approaches can contribute to improve
global cybersecurity.
Thanks!
[email protected]