Electronic Commerce and Sovereignty
Begin in 1999 and speed back into the past. The buildings become smaller, the highways less crowded. Cities, whose great populations assembled in proximity to factories and office Wayne Hanson
buildings, shrivel away as America once again becomes a country of farmers and cottage industries.
If, however, one were to begin in 1999 and speed forward in time, a very similar change might occur. Crowded cities shrink as employees and businesses, connected by computer over high-speed telecommunications lines or by satellite, move to more desirable locations in the country, the mountains or on the shore.
There are many ideas of what effects information technology will have on the future, on society and on government. But in October in Ottawa, one thing became perfectly clear -- these changes are already afoot, and some of the basic agreements between countries are already in place.
For example, while local governments worried about Internet tax moratoriums put into effect by some states and the federal government, Ira Magaziner, President Clinton's Internet adviser, was floating a plan to track and tax Internet commerce using digital cash identifiable by country. Escrow agents would collect taxes and send them to the appropriate governments. The ministers -- meeting in closed session -- afterwards issued a series of general resolutions on taxation, privacy, consumer protection, authentication and digital signatures. The European Union (EU) and the United States, however, clashed in open session over privacy.
The Clinton administration's plan, advanced by Magaziner, proposed self-regulation of privacy. However, the EU insisted that nations without a comprehensive government-enforced privacy policy on the books by the end of October would do no business with a united Europe. While the policy is
not being enforced at this writing, a new reality is dawning. This truly is the beginning of a new global economy. The federal government's Internet tax initiatives and the Supreme Court's decisions on censorship and privacy all are subject to "higher review" if we intend to play the global
economic game.
Now the United States, which has used economic sanctions against such countries as Cuba, Iraq and Iran, and which passed the Helms-Burton Act puni-shing those nations that violate our sanctions -- could have economic sanctions imposed against it by other nations.
According to the Declaration of Independence, one of the causes of the American Revolution was England's "cutting off our trade with all parts of the world." While 1999 is much different than 1776, sovereignty is still central to the issues. European countries have recently bartered some of their sovereignty to link economies, use a common currency and benefit from the combined economic might of Europe. It appears that to some extent we are being asked -- or told -- to do the same.
Regardless of the outcome, it should be evident to every informed person that this is a new game with new rules.
The special supplement on electronic commerce that accompanies this issue of Government Technology is a look at this new frontier and some of its potential.
Letters to the Editor may be faxed to Dennis McKenna at 916/932-1470 or sent via e-mail. Please list your telephone number for confirmation. Publication is solely at the discretion of the editors. "Government Technology" reserves the right to edit submissions for length.
December Table of Contents
