Asia’s policy makers should strengthen cooperation to harness the potential of new financial technologies for inclusive growth. At the same time, they should work together to ensure they can respond better to the challenges posed by fintech.
New technologies such as mobile banking, big data, and peer-to-peer transfer networks are already extending the reach of financial services to those who were previously unbanked or out of reach, boosting incomes and living standards. Yet, fintech also comes with the risk of cyber fraud, data security, and privacy breaches. Disintermediation of fintech services or concentration of services among a few providers could also pose a risk to financial stability.
These and other issues were discussed at the High-Level Policy Dialogue on Regional Cooperation to Support Innovation, Inclusion, and Stability in Asia, organized by the Asian Development Bank (ADB), Bank Indonesia, and the ASEAN+3 Macroeconomic Research Office (AMRO).
The panel comprised Ms. Neav Chanthana, Deputy Governor of the National Bank of Cambodia; Mr. Diwa Guinigundo, Deputy Governor of Bangko Sentral ng Pilipinas; Ms. Mary Ellen Iskenderian, President and Chief Executive Officer of Women’s World Banking; Mr. Ravi Menon, Managing Director of the Monetary Authority of Singapore; Mr. Takehiko Nakao, President of ADB; Mr. Abdul Rasheed, Deputy Governor, Bank Negara Malaysia, and Mr. Veerathai Santiprabhob, Governor of the Bank of Thailand. Mr. Mirza Adityaswara, Senior Deputy Governor of Bank Indonesia, gave the opening remarks at the conference and Ms. Junhong Chang, Director of AMRO, gave the welcome remarks.
“Rapidly spreading new financial technologies hold huge promise for financial inclusion,” said Mr. Nakao. “We must foster an enabling environment for the technologies to flourish and strengthen regional cooperation to build harmonized regulatory standards and surveillance systems to prevent international money laundering, terrorism financing, and cybercrimes.”
“Technology is an enabler that weaves our economies and financial systems together, transmitting benefits but also risks across borders,” said Ms. Chang. “Given East Asia’s rapid economic growth, understanding and managing the impact of technology in our financial systems is essential for policymakers to maintain financial stability.”
“Asia, including Indonesia, is an ideal place for fintech to flourish,” said Mr. Adityaswara. “In Indonesia’s case, there are more than a quarter of a billion people living on thousand of islands, waiting to be integrated with the new technology; young people eager to enter the future digital world; more than fifty million small and medium-sized enterprises which can’t wait to get on board with e-commerce; a new society driven by a dynamic, democratic middle class which views the digital economy as something as inevitable as evolution.”
Despite Asia’s high economic growth in recent years, the financial sector is still under-developed in some countries. Fewer than 27% of adults in developing Asia have a bank account, well below the global median of 38%. Meanwhile, just 84% of firms have a checking or savings account, on a par with Africa but below Latin America’s 89% and emerging Europe’s 92%.
Financial inclusion could be increased through policies to promote financial innovation, by boosting financial literacy, and by expanding and upgrading digital infrastructure and networks. Regulations to prevent illegal activities, enhance cyber security, and protect consumers’ rights and privacy, would also build confidence in new financial technologies.
What is a ‘vaccine passport’ and will you need one the next time you travel?
Is the idea of a vaccine passport entirely new?
The concept of a passport to allow for cross border travel is something that we’ve been working on with the Common Trust Network for many months. The focus has been first on diagnostics. That’s where we worked with an organization called “The Commons Project” to develop the “Common Trust Framework”. This is a set of registries of trusted data sources, a registry of labs accredited to run tests and a registry of up-to-date border crossing regulations.
The set of registries can be used to generate certificates of compliance to prevailing border-crossing regulations as defined by governments. There are different tools to generate the certificates, and the diversity of their authentication solutions and the way they protect data privacy is quite remarkable.
We at the Forum have no preference when it comes to who is running the certification algorithm, we simply want to promote a unique set of registries to avoid unnecessary replication efforts. This is where we support the Common Trust Framework. For instance, the Common Pass is one authentication solution – but there are others, for example developed by Abbott, AOK, SICPA (Certus), IBM and others.
How does the system work and how could it be applied to vaccines?
The Common Trust Network, supported by the Forum, is combining the set of registries that are going to enrol all participating labs. Separately from that, it provides an up-to-date database of all prevailing border entry rules (which fluctuate and differ from country to country).
Combining these two datasets provides a QR code that border entry authorities can trust. It doesn’t reveal any personal health data – it tells you about compliance of results versus border entry requirements for a particular country. So, if your border control rules say that you need to take a test of a certain nature within 72 hours prior to arrival, the tool will confirm whether the traveller has taken that corresponding test in a trusted laboratory, and the test was indeed performed less than three days prior to landing.
The purpose is to create a common good that many authentication providers can use and to provide anyone, in a very agnostic fashion, with access to those registries.
What is the WHO’s role?
There is currently an effort at the WHO to create standards that would process data on the types of vaccinations, how these are channelled into health and healthcare systems registries, the use cases – beyond the management of vaccination campaigns – include border control but also possibly in the future access to stadia or large events. By establishing in a truly ethical fashion harmonized standards, we can avoid a scenario whereby you create two classes of citizens – those who have been vaccinated and those who have not.
So rather than building a set of rules that would be left to the interpretation of member states or private-sector operators like cruises, airlines or conveners of gatherings, we support the WHO’s effort to create a standard for member states for requesting vaccinations and how it would permit the various kinds of use cases.
It is important that we rely on the normative body (the WHO) to create the vaccine credential requirements. The Forum is involved in the WHO taskforce to reflect on those standards and think about how they would be used. The WHO’s goal is to deploy standards and recommendations by mid-March 2021, and the hope is that they will be more harmonized between member states than they have been to date in the field of diagnostics.
What about the private sector and separate initiatives?
When registry frameworks are being developed for authentication tools providers, they should at a minimum feed as experiments into the standardization efforts being driven by WHO, knowing that the final guidance from the only normative body with an official UN mandate may in turn force those providers to revise their own frameworks. We certainly support this type of interaction, as public- and private-sector collaboration is key to overcoming the global challenge posed by COVID-19.
What more needs to be done to ensure equitable distribution of vaccines?
As the WHO has warned, vaccine nationalism – or a hoarding and “me-first” approach to vaccine deployment – risks leaving “the world’s poorest and most vulnerable at risk.”
COVAX, supported by the World Economic Forum, is coordinated by the World Health Organization in partnership with GAVI, the Vaccine Alliance; CEPI, the Centre for Epidemics Preparedness Innovations and others. So far, 190 economies have signed up.
The Access to COVID-19 Tools Accelerator (ACT-Accelerator) is another partnership, with universal access and equity at its core, that has been successfully promoting global collaboration to accelerate the development, production and equitable access to COVID-19 tests, treatments and vaccines. The World Economic Forum is a member of the ACT-Accelerator’s Facilitation Council (governing body).
Iran among five pioneers of nanotechnology
Prioritizing nanotechnology in Iran has led to this country’s steady placement among the five pioneers of the nanotechnology field in recent years, and approximately 20 percent of all articles provided by Iranian researchers in 2020 are relative to this area of technology.
Iran has been introduced as the 4th leading country in the world in the field of nanotechnology, publishing 11,546 scientific articles in 2020.
The country held a 6 percent share of the world’s total nanotechnology articles, according to StatNano’s monthly evaluation accomplished in WoS databases.
There are 227 companies in Iran registered in the WoS databases, manufacturing 419 products, mainly in the fields of construction, textile, medicine, home appliances, automotive, and food.
According to the data, 31 Iranian universities and research centers published more than 50 nano-articles in the last year.
In line with China’s trend in the past few years, this country is placed in the first stage with 78,000 nano-articles (more than 40 percent of all nano-articles in 2020), and the U.S. is at the next stage with 24,425 papers. These countries have published nearly half of the whole world’s nano-articles.
In the following, India with 9 percent, Iran with 6 percent, and South Korea and Germany with 5 percent are the other head publishers, respectively.
Almost 9 percent of the whole scientific publications of 2020, indexed in the Web of Science database, have been relevant to nanotechnology.
There have been 191,304 nano-articles indexed in WoS that had to have a 9 percent growth compared to last year. The mentioned articles are 8.8 percent of the whole produced papers in 2020.
Iran ranked 43rd among the 100 most vibrant clusters of science and technology (S&T) worldwide for the third consecutive year, according to the Global Innovation Index (GII) 2020 report.
The country experienced a three-level improvement compared to 2019.
Iran’s share of the world’s top scientific articles is 3 percent, Gholam Hossein Rahimi She’erbaf, the deputy science minister, has announced.
The country’s share in the whole publications worldwide is 2 percent, he noted, highlighting, for the first three consecutive years, Iran has been ranked first in terms of quantity and quality of articles among Islamic countries.
Sourena Sattari, vice president for science and technology has said that Iran is playing the leading role in the region in the fields of fintech, ICT, stem cell, aerospace, and is unrivaled in artificial intelligence.
From our partner Tehran Times
Free And Equal Internet Access As A Human Right
Having internet access in a free and equal way is very important in contemporary world. Today, there are more than 4 billion people who are using internet all around the world. Internet has become a very important medium by which the right to freedom of speech and the right to reach information can be exercised. Internet has a central tool in commerce, education and culture.
Providing solutions to develop effective policies for both internet safety and equal Internet access must be the first priority of governments. The Internet offers individuals power to seek and impart information thus states and organizations like UN have important roles in promoting and protecting Internet safety. States and international organizations play a key role to ensure free and equal Internet access.
The concept of “network neutrality” is significant while analyzing equal access to Internet and state policies regulating it. Network Neutrality (NN) can be defined as the rule meaning all electronic communications and platforms should be exercised in a non-discriminatory way regardless of their type, content or origin. The importance of NN has been evident in COVID-19 pandemic when millions of students in underdeveloped regions got victimized due to the lack of access to online education.
Article 19/2 of the International Covenant on Civil and Political Rights notes the following:
“Everyone shall have the right to freedom of expression; this right shall include freedom to seek, receive and impart information and ideas of all kinds, regardless of frontiers either orally, in writing or in print, in the form of art, or through any other media of his choice.”
Internet access and network neutrality directly affect human rights. The lack of NN undermines human rights and causes basic human right violations like violating freedom of speech and freedom to reach information. There must be effective policies to pursue NN. Both nation-states and international organizations have important roles in making Internet free, safe and equally reachable for the people worldwide. States should take steps for promoting equal opportunities, including gender equality, in the design and implementation of information and technology. The governments should create and maintain, in law and in practice, a safe and enabling online environment in accordance with human rights.
It is known that, the whole world has a reliance on internet that makes it easy to fullﬁll basic civil tasks but this is also threatened by increasing personal and societal cyber security threats. In this regard, states must fulfill their commitment to develop effective policies to attain universal access to the Internet in a safe way.
As final remarks, it can be said that, Internet access should be free and equal for everyone. Creating effective tools to attain universal access to the Internet cannot be done only by states themselves. Actors like UN and EU have a major role in this process as well.
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