The Physics of Politics in the Information Age: A case study of Electronic Commerce on the Internet Meeting the Politics of Nations. Jim Johnson 422 Green Pasture Drive Rockville, MD 20852-4233 (202) 775-3134 ext 3401 e-mail: SMOOTHSTNS@aol.com Years ago, when the science of high performance computing and the use of the Internet was the sole preserve of government laboratories, and corporate and university research centers, there was ample room for the development and exercise of innovative schemes for usage of this massive data management power. Then along came the "computers for the rest of us." The idea of computing power in the hands of just plain laymen created a whole new force field in the world of science and commerce. At the urging of computer systems executive, through the Computer Systems Policy Project (CSPP), the idea of using high performance computing, and the Internet to address the nation's social and economic development gained wide acceptance. John Sculley of Apple began to educate national policy leaders on the need for changing laws and regulations to allow for greater use of computing power in various functions of the society, such as education and lifelong learning, health care, job training, and commerce. The vision of making public policy for use of the Internet and computing became an issue in the 1992 election. We ended up with a President and Vice President who not only knew how to use computers, but actually wanted to integrate the technology into their national agenda for growing the economy, and solving social issues. The idea of electronic commerce, of doing business over the Internet was born through the efforts of many in the industry who were inventing the technology and the concepts. This brought the issues of public policy squarely into the information technology industry and profession. Electronic trade challenges many of the basic concepts of national sovereignty. Governments like to regulate what comes into their territory. This is an exercise of their legitimate power. It is part of being a nation. It is part of maintaining the central values of their culture and language. Governments derive revenue from goods shipped into their territory. With electronic trade, intangible goods and services, worth increasing millions of dollars are being transmitted across nation boundaries without any governments knowing. This is creating substantial political anxiety among political leaders. Most political leaders are recognizing the substantial benefit which a global information economy will mean to their own countries. But they are reacting in a wide variety of ways. Fundamental to the issue of openness to the internet is the technical and economic status of the country's basic telephone system. There is serious tension between the industrialized nations, and their aggressive high tech industries, and the underdeveloped nations, who fear cyber colonialism. The G7 recently addressed these issues in a meeting last week in South Africa. Looming large as a political force in this debate is the civil liberties community which believes that their should be no rules for use of the Internet. Their rhetoric is colorful: "The internet is a sovereign nation." "Access to knowledge on the internet should be free to all." "Information is the key to human freedom and wealth. It is greater than the gods." Some might call these folks "cyber anarchists." They are a force on one end of the spectrum. While on the other end are some remaining totalitarian governments on our planet, like China which requires you to register with the police if you have access to the internet. What is interesting is that those who want no rules for the internet, are usually the ones who understand the absolute technical disciplines that must be imposed to make the basic system work at all. There is no freedom of choice in hooking this system together in its basic technology. There must be protocols, standards, concepts of interoperability with little deviation. We know from recent history that information technology, and freedom of communication can undermine totalitarian regimes. Thus, the internet and all that it can mean drills deeply into the global political agenda. There are sensible, and practical things happening. Leaders of the industry, and in some governments are realizing that we cannot let the information age break upon mankind accidentally. We must usher it in. We must make rules that make sense. We must learn from the technologists what the capabilities of this global nervous system can be. We must understand what the pyschological, social, economic and political impacts and implications are. We must evaluate the choices of using the technology for the exercise of freedom to enhance the best potential of mankind; and we must understand the uses of the technology for control of the worst instincts still prevelant in some parts of global society. The technology, while having almost a character of its own, is essentially neutral. This calls for us to develope personal ethics, societal rules, and global agreements for its use. This is the debate we are beginning. Lots needs to be done. Many communities of expertise, such as those of the technology experts, and the politicians must be joined in this near mission impossible. Bio sketch: Jim Johnson is President of EIKON Strategies, Inc. a firm specializing in strategic public policy management for high technology companies. He services as Chair of the United States negotiating team for the G7 electronic commerce policy working group. He is also Deputy Director of the Global Information Infrastructure Commission, a non-governmental, multinational group of CEOs of high tech companies addressing the policy issues of the global information society. He also served as Policy Advisor to President Clinton's NII Advisory Council; as director of Government Affairs for Apple Computer, and for Xerox, and in other government policy making positions. He holds the Juris Doctor from George Washington University.