3 marie's poli 599 final

8/4/2019 3 Marie's Poli 599 FINAL

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Marie Leaf

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Table of Contents Table of Contents ................................................................................................................................... 1

Grading Scheme for POLI 599 ................................................................................................................. 2

Performance Assessment ....................................................................................................................... 2Internship Reflection Paper .................................................................................................................... 4

Industry Reports ..................................................................................................................................... 7

Internship Research Paper ..................................................................................................................... 8



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Grading Scheme for POLI 599 A grade for the internship will be assigned by the faculty supervisor based on:

◦ (25%) A performance assessment. This will ordinarily be worth 25% of the course grade, and shall

be provided by the student's supervisor at the sponsoring organization.

◦ (25%) The quality of the written work materials, such as work diary, copies of memoranda,

correspondence, or papers produced; or a shorter paper assessing the learning value of the

internship. This will ordinarily be worth 25% of the course grade, and will be graded by a

faculty supervisor.

◦ (50%) The quality of the research paper. This will ordinarily be worth 50% of the course grade,

and will be graded by the faculty supervisor.

My Departmental Advisor and Academic Supervisor is Professor Mark Brawley, who has agreed to

follow this grading scheme of the POLI 599 Internship course.

Performance Assessment This portion of the grade (25%) has been provided by my immediate supervisor, Connie Irrera, my

immediate supervisor in the office. Pierre Richer, the Senior Commercial Specialist, has also agreed

to provide supplemental assessment shall the grader require. Attached on the next page is the

reference letter that Mrs. Irrera has provided on February 2nd, 2010.

For further inquiries:

Connie Irrera, Commercial Specialist

Phone: (514) 398-9695 ext. 2262 Email: [email protected]

Or

Sue Bissi, Commercial Assistant Phone: (514) 398-9695 ext. 2273

Email: [email protected]

mailto:connie.irrera%40trade.gov


mailto:sue.bissi%40trade.gov






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Internship Reflection Paper Introduction—Reasons behind the pursuit of an internship

I am an Honors Political Science and International Development Studies Double Major. I am

in stream one of IDS—Economics and Livelihood. I see international trade and business as the most

influential driver of change within a country. As a

dual American/Canadian citizen interested in

trade and business, interning with the U.S.

Department of Commerce was an ideal setting for

me to gain the experience I needed to launch an

international career. I have studied the

importance of American ventures within Canada

and our strong cooperation relative to the rest of

the world. I received direct experience with on-

the-ground realities involved in promoting cross-

border business.

My Duties as an Intern at The United States Commercial Service

The United States Commercial Service provides small to medium sized businesses and firms

access to the Canadian market. They aim to

promote economic prosperity, enhance job

creation, and strengthen national security

through a global network of international

trade professionals. Overall, trying to help U.S.

businesses compete in the global marketplace.

It is a branch within the US Consulate, and

quite integrated in the activities and functions

of American diplomacy.

The first half of the summer, I

organized a trade mission for 23 US companies looking to expand their business in Canada. Suresh

FAmbassador Jacobson's house for Fourth of July Celebrations

US Commercial Service with Under Secretary Suresh Kumar at RepCAN10



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Kumar, the President’s Assistant Secretary of Trade, closely oversaw the project due to Obama’s

vision for the National Export Initiative. I was responsible for managing a team of four other interns

and coordinating successful meetings between American and Canadian businesses. I took on extra

responsibility scheduling appointments for specific companies, who had exceptional feedback for

our services provided.

During the second half of the summer, I worked with the Commercial Specialists to prepare

market research reports. I was responsible for a Coffee Machine Industry report and a Canadian

Port Security report. This required a lot of researching and communicating with various people in

these respective industries. Throughout the internship, I handled a lot of correspondence between

the Commercial Specialist and clients, other offices, and associations. I was inevitably assigned some

of the more menial tasks at times.

Conclusion—What I gained from my internship

I set out to get a practical, office environment, learn more about American politics, and

broaden perspective on different career paths. Disregarding my own personal issues with office life,

the internship had extensive advantages. I met many high-profile, and influential economic and

political actors—including the U.S.

Ambassador Jacobson and the Assistant

Secretary of Trade Suresh Kumar. I was

able to converse with them on an

extremely personal and candid level,

gaining insight into the thoughts and

strategies of influential people of global

economics and diplomacy.

This summer, the office took on a

huge number of interns to help with all the

work. I enjoyed the company of equally as

passionate and motivated students

regarding international trade. We were able to share life philosophies and future aspirations with

one another. We developed an excellent team and environment for all of us to work. We all very

Emily Mayers and I with Ambassador Jacobson



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much so, appreciated all the responsibility that was entrusted to us, and were able to feel like we

did quite substantial work. There was extreme personal satisfaction in feeling as if we were part of

the process and not just passive onlookers

Finally, I was introduced to the world of Foreign Service work. The Foreign Service Officers

were some of the most intelligent people who have chosen a modest lifestyle while contributing so

effectively in public service. It is a very

admirable field and one of the FSOs was the

acting consul in Haiti right after the

earthquake and directed the evacuation of

18,000 people.

I come from an extremely diverse

background with an insatiable urge to travel

and experience new culture. This was the

hardest issue to overcome, as I spent my

summer in Montreal watching my friends and

family work in Kenya, study in China, or live in

Italy. Although I found many prospective

international internships, I found it too logistically difficult to organize and commit to the

uncertainty of overseas internships. I had heard of many expensive and frustrating internships

where students found they were doing irrelevant and menial work. As many internships are not paid,

I opted to save oversees living for either interesting paid work, or valuable personal exploration. As

well, Montreal in the summertime turns into a completely new city; the beautiful weather, outdoor

terraces, and almost peaceful void of McGill culture.

As mentioned earlier, it took quite a while for me to be accustomed to the nature of working

within an office. The rigid bureaucracy, physical environment, granted I was given my own office,

and hours were all new to me. As well it was extremely frustrating to see some of the inefficient use

of technology within the office.

Alice Sweitzer and I with Paul Mayer



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Overall, I had a very eye-opening and positive

experience. However, It was not until after I received my

reference letter from Connie that I full recognized the depth

and extent to what I personally achieved. I always

appreciate objective assessment; affirmation to just how

much impact and how much work I have done. This came a

few times throughout the duration of the summer from

various people in the office and business people I interacted

with, but very few times directly from Connie. This is expected as people do not tend to give

feedback through direct interaction and are more prone to providing it in writing or after the fact. In

regards to her comments, I have always considered myself a team player, and tend to be ignorant of

leadership roles I hold. I am continuously surprised

when people are impressed to learn I was captain of

my high-school basketball team, principal of my

ballet-school, or head of costumer service at a past

restaurant job—titles I personally found arbitrary and

irrelevant in the grand scheme. It profoundly

touches me when I receive praise for strong

leadership characteristics, or positive unexpected

commendations in general.

This experience has truly given me confidence to pursue higher international development

positions and further my personal exploration of the world. From the support of my supervisors, the

(almost effusive) encouragement from my friends at the office, and especially from my work, I feel

very few limits are set for whatever I choose to pursue.

Industry Reports In addition to my reflection paper, I have included two industry reports I produced with the

guidance of Connie Irrera during the second half of my internship. The first is about the Coffee

Machine Industry in Canada, the second is on the Port Security Industry. Both reports are included

at the back of this document.

Emily Mayers at Fourth of July in Ottawa

Interns preparing for Fourth of July celebrations



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Internship Research Paper Introduction ............................................................................................................................................ 9

Background and Issue—The NEI and the United States Commercial Service ...................................... 10Potential Benefits of the National Export Initiative ......................................................................... 10

Problem and Question: Inefficient Communication of Domestic and State Actors......................... 11

Methodology ........................................................................................................................................ 13

Policy Options - Linking Economic Growth, ICT, and Globalization ..................................................... 14

Economic Growth ............................................................................................................................. 14

Information and Communication Technology- Knowledge and Relationships ................................ 16

Knowledge .................................................................................................................................... 16

Social Relations Capital ................................................................................................................. 17

Total Factor Productivity .............................................................................................................. 17

Globalization ................................................................................................................................. 18

Policy Options- U.S. ICT Indicators and Applicable Policies.................................................................. 19

Domestic ICT indicators and policy ................................................................................................... 20

Policy 1 .......................................................................................................................................... 21

Policy 2 .......................................................................................................................................... 21

Policy 3 .......................................................................................................................................... 22

State ICT Integration in Bureaucracy ................................................................................................ 22

Policy 4 .......................................................................................................................................... 23

Policy 5 .......................................................................................................................................... 23

Policy 6 .......................................................................................................................................... 24

Policy Analysis ....................................................................................................................................... 25

Conclusion ............................................................................................................................................. 26Bibliography .......................................................................................................................................... 28

Appendix A ........................................................................................................................................ 30

Appendix B ....................................................................................................................................... 31

Appendix C ....................................................................................................................................... 34



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Introduction

In a world inundated with new media, Mark McLuhan highlights the relevance of new

technology, "In a culture like ours, long accustomed to splitting and dividing all things as a means of

control, it is sometimes a bit of a shock to be reminded that, in operational and practical fact, the

medium is the message. This is merely to say that the personal and social consequences of any

medium - that is, of any extension of ourselves - result from the new scale that is introduced into our

affairs by each extension of ourselves, or by any new technology." 1 Our current Information

Communications Technology (ICT) development surge is unleashing endless dimensions of digital

infrastructure and innovative realms to store and share ideas, news, and culture. The dynamic nature

of this information flow raises many contentious puzzles in the global society. In the realm of politics,

ICT impacts domestic livelihood, foreign policy, and globalization.

Over the past decade, the United States has desperately sought solutions for their devastatingeconomic recession. The economy lies at the forefront of U.S. citizen concerns and the primary

subject of government action. The questionable efficacy of bailouts like the Troubled Asset Relief

Program (TARP) and the very generous government support of the automotive industry have sparked

contentious debate and lie far from any Bipartisan agreement. The most recent National Export

Initiative (NEI), relative to other past economic policies, is hardly as publicized or debated. It focuses

on promoting exports of Small and Medium sized Enterprises (SMEs). This feasible and rational

policy potentially serves many different interests and has potential to greatly help the U.S. economy.

Unfortunately, without sufficient public attention and scrutiny, which is usually stirred by extreme

oppositional debate, it remains a one-dimensional initiative with vague and ineffective practicality.

This paper will first detail how the NEI will help the U.S. economy. It veers away from the

endless debate between free and fair trade arguments and only highlights the intended benefits set out

by the NEI. This paper will present a general theoretical solution to the problems outlined. Next, it

details the under-emphasized importance of ICT use at domestic-firm level, as well as the state

infrastructure level of the United States Commercial Service (USCS). The normative debate over

open-ICT policy, arising from recent Wikileaks debates, is skirted as we are specifically concerned

with the efficacy of the NEI on the economy, and not overall government transparency. I will

evaluate existing U.S. indicators of ICT use to determine necessary areas to address concern. The last

section will recommend specific policies for the U.S. Government to implement for domestic-firm

1 Marshall McLuhan. Understanding Media: The Extensions of Man. New York: McGraw Hill, 1964. Print.



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and bureaucratic levels. This paper illustrates how ICT can best enhance SME trade through

complementarity externalities and communication interoperability. I propose that the NEI

should integrate more focus on ICT use and development to be effective.

Background and Issue—

The NEI and the United States Commercial Service

The U.S. has experienced extreme economic successes over the past 180 years. Government

policy approaches have adapted to and outcompeted the international economy. With it‘s large

unified market, a supportive political-legal system, vast areas of highly productive farmlands, vast

natural resources (especially timber, coal and oil), a cultural landscape that valued entrepreneurialism,

a commitment to investing in material and human capital, and at times a willingness to exploit labor,

the US has grown as a huge, integrated, industrialized economy that still makes up over a quarter of

the world economy. If it is to continue with trends of success, they must reanalyze the dynamic nature

of the global economy for and adapt its policies accordingly.

Potential Benefits of the National Export Initiative

The United States International Trade Administration‘s (ITA) primary goal is ―To create

prosperity by strengthening the competitiveness of U.S. industry, promoting trade and investment,

and ensuring fair trade and compliance with trade laws and agreements.‖ This mission is girded by an

overarching vision, ―To foster economic growth through global trade.‖2 The National Export

Initiative is the newest responsibility of the ITA. Obama‘s outlines the goals of the NEI as ―an

Administration initiative to improve conditions that directly affect the private sector's ability to export.

The NEI will help meet my Administration's goal of doubling exports over the next 5 years by

working to remove trade barriers abroad, by helping firms -- especially small businesses -- overcome

the hurdles to entering new export markets, by assisting with financing, and in general by pursuing a

Government-wide approach to export advocacy abroad, among other steps.‖3

In a time of American recession, this policy has considerable aims to double American exports

and provide two million jobs for American citizens.4 The U.S. cannot return to an economy that is

2 United States, Department of Commerce 2.3 Exec. Order No. 13534, 3 C.F.R. (2010). Print.4 Exec. Order No. 13534.



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driven by borrowing and consumption. If they are to maintain robust growth, the world will need to

rely less on U.S. consumption – and the U.S. will need to sell more to the rest of the world. Five

components are deemed to ensure successful export promotion. They aim to improve advocacy and

trade promotion efforts on behalf of U.S. exporters, so trade missions can introduce the world to

American products and advocacy centers can help U.S. exporters pursue opportunities. They aim to

increase access to export financing, so good opportunities do not fall through due to the inability to

finance an export. They aim to remove barriers to trade, so as many markets as possible are open to

our products. They aim to enforce their trade rules, to make sure our trade partners live up to their

obligations. Finally, they aim to pursue policies at the global level to promote strong, sustainable,

and balanced growth, so the world economy grows and their exports have robust markets. These are

crucial tasks for the government to pursue so America‘s exporters can succeed around the globe.5

Problem and Question: Inefficient Communication of Domestic and State Actors

This policy deviates from past efforts of American expansionism. Past global economic

dominance seems to have been driven by the efforts and capabilities of large American multinational

companies. The NEI has redirected their focus and support for the Small to Medium sized Enterprises

(SMEs). The redistributive potential for economic equality between different sized firms seems

viable and macro-economically sound. Smaller firms are gaining easier access to global markets.

However, accessing global markets is a complicated endeavor to individually undertake, and therehas been a market bias detrimental for smaller firms without the resources to compete.

Looking to SMEs changes the nature of this economic policy solution. We have to assess the

contextual issues of implementing this new approach. In light of the theoretical argument to empower

smaller businesses, how can their access to global markets be realistically attained? How does the

dynamic ICT global environment play a role in 21 st century foreign economy policy and the success

of SMEs? How should U.S. economic policy address issues of ICT to help leverage SMEs in the

international marketplace? These were a couple personal questions that arose during my internship

with the US Commercial Service (USCS), the export branch of the ITA.

Through observation and experience, two issues arise when addressing these questions.

Problems stemming from direct experiences have explicit and short-term implications for

international trade. Indirect problems may have more implicit and long-term implications on the

5 Exec. Order No. 13534.



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efficacy of the NEI as a whole policy. The reports of the NEI‘s progress over the past ten months so

far are impressive in numbers. However, working as an intern this summer I experienced the

inefficiencies of not form the ICT use of domestic-firms, but of the State office itself.

At the domestic level, SMEs do not have the resources to invest in research, development and

other ICT capacities as multinationals might. This is necessary to compete in the international

marketplace. The USCS aims to provide support for SMEs that may not be provided within their

individual capacity. They provide market intelligence, trade counseling, business matchmaking, and

trade advocacy. This is how the U.S. government facilitates necessary complementarity externalities

for smaller firm exports. However, the de facto efficacy of these objectives is hindered without

considering the nature of global trade in the 21 st century — a reliance on ICT. Is a complementary

ICT policy or amendment for the NEI needed? I address the answer to this question on two levels; to

encourage ICT investment at the individual firm level; to encourage ICT use at the bureaucratic level,

as the Commercial Service acts as the supporting international trade tool for these smaller firms.

I drew a few conclusions on how the Department of Commerce could benefit from

implementing a comprehensive ICT policy. After much research, I was impressed to find that the

state had in fact announced a strategy for American Innovation including a focus on Information and

Communication Technology, setting up a whole new bureau within the State, the U.S. Chief

Information Officers Council (CIO). I was thoroughly impressed that Obama‘s administration does

value the role that ICT plays. However, this drive for technological innovation and emphasis on

efficiency was not transferred over to the Department of Commerce and their policy initiatives.

Stemming from my understanding of economic concepts, this seemed like the most important

department to be integrating and accelerating ICT use. Why then, were these attitudes at the State

level going unrealized at the Department level? One can only conclude that more integration of

ideology and ‗communication‘ between these two bureaus was necessary.

Addressing this question may further our understanding of the power dynamic between

domestic economic actors and the international political environment. This is what might be

considered the institutional aspect of thinking about ICT support through policy: is it better to havemore or less bureaucracy dealing with these issues, and should such bureaucracy be set out in a

centralized or decentralized manner, etc.? Conclusions drawn may support either an analytical liberal

or a neoclassical realist argument to assess state action. Some argue that ICT has a democratizing



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effect and decentralizing impact for national state power.6 If evidence shows that the government is

consciously impeding or unnecessarily controlling this economic viability, this may support

neoclassical realist perspectives.

As well, due to the tremendous diversity of ICT technology, one has to be careful of the

straightforward logic that because ICTs seem to be a good thing, that governmental policy in support

of ICTs also a good thing. With all the simplistic rhetoric in the U.S. these days oscillating between

either deregulation of ‗big government‘ and freer markets or vice-versa, ICT infrastructure issues are

extraordinarily difficult to and deal with in a short paper such as this. In actuality, one has

to understand that sometimes more bureaucracy "in support" of a new technology may be a

constraining condition. It depends, one would think, on the nature of the technology and the specific

approaches taken for support and/or regulation. Sweeping generalizations in this regard are likely to

be driven more by

ideology than by insight into the nature and function of either ICTs or government. This paper aims

to provide specified and regulated ICT recommendations.

Methodology

With a thorough research analysis, we see how the emphasis on ICT can foster economic

growth. With a closer examination of ICT indicators within the U.S., we determine the best avenues

to foster ICT. I take this further by providing specific viable policy examples; one directed at

domestic firms and the other targeting the Trade Department‘s infrastructure.

The observations are inspired primarily by my experience interning with the United States

Commercial Service (USCS) Montreal from May to August of 2010. I heavily supplement my

observations with information drawn from scholarly research, publications, strategy documents, as

well as personal communication with prominent and experienced personnel of the Commercial

Service. Interacting with superiors, onlookers to the ICT dazed Generation Y 7 , I had trouble

6 Stephen Coleman. (1999) Can the New Media Invigorate Democracy, Political Quarterly 70, 1,16-22.7 Generation Y, also known as the Millennial Generation (or Millennials), Generation Next, Net Generation, Echo

Boomers, describes the demographic cohort following Generation X. As there are no precise dates for when theMillennial generation starts and ends, commentators have used birth dates ranging somewhere from the mid-1970s to theearly 2000s. Characteristics of the generation vary by region, depending on social and economic conditions. However, itis generally marked by an increased use and familiarity with communications, media, and digital technologies. In most parts of the world its upbringing was marked by an increase in a neoliberal approach to politics and economics.

http://en.wikipedia.org/wiki/Cohort_(statistics)

http://en.wikipedia.org/wiki/Generation_X

http://en.wikipedia.org/wiki/2000s_(decade)

http://en.wikipedia.org/wiki/Neoliberalism

http://en.wikipedia.org/wiki/Neoliberalism

http://en.wikipedia.org/wiki/2000s_(decade)

http://en.wikipedia.org/wiki/Generation_X

http://en.wikipedia.org/wiki/Cohort_(statistics)



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expressing how impactful of a role ICT played in relationships, economics, and business. This

frustration acted as the motivation to research this issue further. I hope to supplement my own

testimonial experience with more empirical evidence and rigor. The next section will explore the

theoretical background of economic growth, ICT, and the nature of globalization.

Many benefits can be drawn from increased ICT use on the firm level and the government

level. However, the primary motivation for amending the NEI addresses efficiency problems. The

efficiency of increasing knowledge, communication and total factor productivity with ICT will first

be theoretically discussed. Individual indicators at the firm and state level are provided

subsequently, where I will examine where the largest, most direct, and fiscally manageable

room for improvement lies.

Policy Options - Linking Economic Growth, ICT, and Globalization

My policy options are drawn from a constructed theoretical framework. It suggests the causal

mechanism of ICT investment and recognition of globalization for economic growth. I first consider

theories of general economic development, pertinent to an industrialized nation. I then look at theory

of information flow. This is necessary as the NEI focuses on SMEs who do not have access to

international knowledge and are less competitive than larger firms. To complete the causal

framework, I look at the nature of globalization in our modern world. This section underlies the

necessity of ICT for global competition. However, I refrain from assessing policies regarding foreign

economic relations and foreign stakeholders as this goes beyond the scope and objective of this paper.

After developing this framework, I provide exact indicators of how the U.S. invests and uses

ICT at the domestic and state level, and how they globally compare. These indicators help us assess

how to address issues of knowledge dispersal, social relations, and total factor productivity of an

economy.

Economic Growth

Considering different approaches for explaining economic growth, we must choose a model

that holds implications for a well-developed economy such as the United State‘s. In neo-classical

- Ian Shapira. "What Comes Next After Generation X?" The Washington Post . 07 June 2008. Web. 10 Dec. 2010.<http://www. washingtonpost.com/wp-dyn/content/article/2008/07/05/AR2008070501599.html>.



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growth models, the long-term rate of growth is exogenously determined by either interjecting a

variable savings rate (the Harrod-Domar Model) or a rate of technical progress (Solow Model).

However, the savings rate and rate of technological progress remain unexplained and remain a

constant variable.8 The poor performance of neoclassical theories in illuminating the sources of long-

term economic growth has led to dissatisfaction with traditional growth theory. 9 Any increase in

Gross National Income that cannot be attributed to short-term adjustments in stocks of either labor or

capital are ascribed to a third category, commonly referred to as the Solow residual. This residual is

responsible for roughly 50% of historical growth in the industrialized nations.10 If we consider the

large role that this Solow residual has played in economic growth we can turn to new growth theories

as a more relevant explanation for economic growth in the American context.

New growth theories in economics hold a more endogenous growth approach.11 I apply the

Romer endogenous growth model because it addresses technological spillovers that may be present in

the process of industrialization. As well, endogenous growth theories purport that policy measures

can have an impact on the long-run growth rate of an economy. For example, subsidies on research

and development, education, or information communication technology increase the growth rate by

increasing the incentive to innovate.

These new growth theories emphasize complementarities between several conditions

necessary for successful development. 12 As well, these theories often highlight the problem that

several things must work well enough, at the same time, to get sustainable development under way.

Their concept of coordination failure also offers some significant and distinct insight. A coordination

failure is a state of affairs in which agents inability to coordinate their behavior leads to an outcome

that leaves all agents worse off or unproductive. 13 This is solved through interoperability of

communication systems. Are SMEs being provided with complementarities by the NEI? Furthermore,

is the NEI itself supported with complementarities for successful implementation and growth?

The next section addresses a few classic tools for complementarities and interoperability.

Technology of information dissemination is crucial for economic development as knowledge is

considered a complementarity. As well, technology can improve ‗social capital‘ which is defined asthe quality of trust relationships developed through communications adding to economic productivity.

8 Paul Romer. "Economic Growth." The Concise Encyclopedia of Economics. Liberty Fund, 2007. Print. 4.9, Michael P Todaro and Stephen C. Smith. Economic Development . Boston: Pearson Addison Wesley, 2006. Print. 145.10 Todaro and Smith 145.11 Romer 4.12 Todaro and Smith 145.13 Todaro and Smith 145.

http://en.wikipedia.org/wiki/Exogeny

http://en.wikipedia.org/wiki/Subsidies

http://en.wikipedia.org/wiki/Research_and_development




http://en.wikipedia.org/wiki/Subsidies

http://en.wikipedia.org/wiki/Exogeny



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Communication relieves coordination failure. Classic economic growth models emphasize land, labor,

and means of production capital. Our technological tools address the implicit value of social capital

and digital infrastructure.

Information and Communication Technology- Knowledge and Relationships

We define ICT as the general term that stresses the role of telecommunications in modern

information technology. IT consists of all technical means used to handle information and aid

communication, including both computer and network hardware as well as necessary software. ICT

consists of IT as well as telephony, broadcast media, and all types of audio video processing and

transmission. The expression was first used in 1997 in a report by Dennis Stevenson to the UK

government14

We illustrate how ICT impacts two causal mechanisms of economic growth- knowledge and

relations of economic actors. First, new growth theory emphasizes that economic growth results from

the increasing returns associated with new knowledge. Knowledge has different properties than other

economic goods (being non-rival, and partly excludable). The ability to grow the economy by

increasing knowledge rather than labor or capital creates opportunities for nearly boundless growth.

Second, ICT fosters social capital. Social capital is the stock of trust, mutual understanding, shared

values, and socially held knowledge that facilitates the social coordination of economic activity. It

assesses the quality of communication within a society. This is where the communication facet of ICT arises.

Knowledge

After determining the importance of both technological advancement and resource

coordination for economic growth, we turn to the arguments of Bush and Oostever. These authors

examine the linkages between material commodity transfers through the ‗space of place‘ and the

movement of information through the ‗space of flows‘. Linking these two spaces is particularly

challenging in information-poor societies where flows of information, technology and consumer

perceptions back to these areas pass through a ‗black box‘, limiting clear lines of exchange between

producers and globally connected exporters.

14Dennis Stevenson. Information and Communications Technology in UK Schools, an independent inquiry. TheIndependent ICT in Schools Commission, 1997 London, UK.



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ICT enables efficient and effective communication, as digital tools are fast and designed to

increase clarity. Like technological revolutions before it, the ICT revolution is said to generate

economic growth through large changes in relative prices and the resulting positive feedback and

autocatalytic effects on products, processes, and institutions throughout the economy. 15 The ICT

revolution is distinctive, however, because of the high knowledge intensity of this technology, which

generates exceptionally high levels of externalities and spillovers on a global scale.16

Social Relations Capital

By removing middlemen and other knowledge excluding factors that taint perfect information,

transparency increases and the actors in an economy have greater awareness in their actions. In the

usual imperfect market situations, social ties located in certain strategic locations and/or hierarchical

positions (and thus better informed on market needs and demands) can provide an individual with

useful information about opportunities and choices otherwise not available.

Consumers and business relations become more trusting as well as efficient. Interoperability

of an ICT ecosystem refers to the ability to efficiently transfer and use information uniformly across

organizations, systems or components. It helps link systems, information and processes within and

across enterprises.17 Thus, the concept has two important components; (1) it represents resources

embedded in social relations rather than individuals; and (2) the access and use of such resources

reside with actors.

Total Factor Productivity

To further illustrate the positive effects of ICT differing from general technological progress,

Martinez et al. assessed economic growth in the United States from 1976 – 1998. Their study allows us

to compare contributions to growth due to ICT and non-ICT capital assets. 18 They disaggregated

factors of production into ICT and non-ICT assets, where specific technological progress is motivated

solely by ICT capital. When the dynamics of productivity are split into specific and neutral

15 Thomas D Lairson. "The Political Economy of Information and Communication Technologies and EconomicDevelopment." Proc. of International Studies Association, Honolulu, HI. 2005. Print. 16 OECD, Employment and growth in the knowledge-based economy, Paris: OECD, 1996.17 Roadmap for Open ICT Ecosystems, 2005, Berkman Center for Internet & Society at Harvard Law School.<http://cyber.law.harvard.edu/epolicy/home>. 3.18 Martinez, Diego, Jesus Rodriguez, and Jose Torres. "ICT-specific Technological Change and Productivity Growth in

the US: 1980 – 2004." Information Economics and Policy 22 (2010): 121-29. ScienceDirect . Web. 13 Dec. 2010. 2.



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technological progress, the former exerts a positive impact while the latter has a clear negative

effect.19

Behind the small contribution of general technological change, they actually find a negative

impact coming from traditional capital inputs (constructions and structures, machinery and transport

equipment), ICT capital had significant economic growth-enhancement effects (communications

technology and digital hardware and software equipment). We can see how ICT impacts an

industrialized economy such as the U.S. As well, specific technological (ICT) change accounts for

35% of total growth in labor productivity.20 This illustrates the indirect support ICT adds to different

factors of production of an economy.

Globalization

I strengthen my position, of the government‘s necessity for ICT utilization to increase exports,

by considering the definition of globalization and the consequences of their inaction to adequately

comply. Globalization is an elusive term, making it hard to specify the role that ICT plays within it.

To make any concrete assertions for recommendations based on the global environment, we must

first form a concrete definition. Globalization is defined as the process by which regional economies

integrate through a global political network of communication, transportation, and trade, investment,

capital flows, migration, and the spread of technology.21 Schools of economists, cultural analysts, and

scientists argue that ICT fuels globalization and is the biggest mechanism shaping society.

22

This drive towards globalization creates a new set of unique demands on government and

business. If the NEI is looking to SMEs, they should acknowledge that the greatest point of access for

these actors in the global environment is through Internet use. Not only does ICT have endogenous

implications for the domestic economy, it fosters connection with and understanding of foreign

partners.

Hilary Clinton best explains America‘s ideals of ICT use in a Foreign Policy article, ―On their

own, new technologies do not take sides in the struggle for freedom and progress. But the United

States does. We stand for a single Internet where all of humanity has equal access to knowledge and

19 Martinez et al. 2.20 Martinez et al. 2.21 Jagdish N Bhagwati. In Defense of Globalization. Oxford: Oxford UP, 2004. Print.22 Thomas L Friedman. The World Is Flat: a Brief History of the Twenty-first Century . New York: Farrar, Straus andGiroux, 2005. Print. 121.Roadmap for Open ICT Ecosystems 5.



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ideas. And we recognize that the world's information infrastructure will become what we and others

make of it. This challenge may be new, but our responsibility to help ensure the free exchange of

ideas goes back to the birth of our republic. The words of the first amendment to the constitution

[guaranteeing freedom of speech] are carved in 50 tons of Tennessee marble on the front of this

building. And every generation of Americans has worked to protect the values etched in that stone.‖23

A combination of connectivity, collaboration, access and transparency – or openness – is

emerging and necessary to compete. There is an intensifying demand for customer-centric services

and real-time information. ICT is evolving and unlocking the efficiencies, standardization and

flexibility needed to propel the transformation of governments and businesses. The norm of

‗openness‘ reshapes ICT ecosystems, and makes it possible to re-engineer government, rewrite

business models and deliver customized services to citizens. 24 The need to rigorously examine

technology use within the NEI becomes even more pressing as we experience the chaos of Wikileaks;

which has undermined Foreign Service ICT security policies. As openness impacts an ICT ecosystem,

it becomes a catalyst for unleashing newfound comparative advantage, invention, social development

and market opportunities.25 Governments and enterprises around the world are embracing ICT use.

In exploring the theory behind the issues of U.S. economic policy, we see two general policy

path options paths — a focus on enhancing domestic levels of ICT at both the firm and state level; or

focusing on ‗21st century exporting‘ and looking beyond the American context to help SMEs reap

greater rewards from the global economy. American foreign relations have many influential and

implicated stakeholders, other than just economic actors. Addressing foreign economic policies is

beyond the intent of this paper. We should first look to improve domestic factors to ensure short-term

economic improvement. The next section will discuss how policies can improve knowledge, social

capital, and total factor productivity in the specific context of the United States.

Policy Options- U.S. ICT Indicators and Applicable Policies

Despite the general view that ICTs entail a new technological revolution, the measured impact

of ICTs on aggregate productivity has been very limited so far and the effects of these forces take a

23 Hillary Clinton. "Internet Freedom." Foreign Policy (2010). Web. 13 Dec. 2010.<http://www.foreignpolicy.com/articles/2010/01/21/internet_freedom?page=full>.24 Roadmap for Open ICT Ecosystems 6. 25 Roadmap for Open ICT Ecosystems 23.



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long time to become visible on the macro-economic level.26 Empirical ICT indicators will hopefully

illuminate areas where appropriate policy measures are required. This is specific within the U.S.

economy as well as their State bureaucracy.

ICT measures are operationalized and drawn from various sources, at the domestic and global

level, to show specific policy paths. The domestic level is measured by calibrated statistics

formulated by Martinez et. Al, that link overall economic growth in the United States to ICT

investment at the household, firm, and state level. The World Economic Forum‘s Networked

Readiness Index (NRI) provides the measurements for the US in a domestic and global comparative

nature; which measures the propensity for countries to exploit the opportunities offered by

information and communications technology. The NRI seeks to better comprehend the impact of ICT

on the competitiveness of nations. The NRI is a composite of three components: the environment for

ICT offered by a given country or community, the readiness of the community‘s key stakeholders

(individuals, businesses, and governments) to use ICT, and finally the usage of ICT amongst these

stakeholders. 27

Domestic ICT indicators and policy

The discrepancy between existing technological infrastructure and business usage of ICT

presents a role for government intervention. The Global IT report ranks the US as 9th for the ICT use

in the market environment, 8th

in business readiness, and 1st

for business usage. Businesses seem to be fulfilling ICT investment to the extent under their control. The environment to use this ICT and the

personnel readiness for ICT can be affected by government policy.

As well, a longitudinal and international measurement exhibits the declining levels of U.S.

business ICT investment. Statistics from the Centre for the Study of Living Standards (CSLS) report

comparing ICT investment gap between Canada and the U.S. businesses are the latest results in an

observed investment gap trend of the past 5 years.

Measured in domestic currency, nominal ICT investment spending in the Canadian business

sector advanced 0.6 per cent in 2009, outpacing that of the United States, which dropped by 3.9 per

cent in the same period. Even taking into account the fact that business sector employment in Canada

decreased significantly less than in the United States in 2009 (-2.5 per cent versus -5.5 per cent),

26 Martinez et al. 1.27 Soumitra Dutta and Irene Mia. "The Global Information Technology Report 2009 – 2010." Proc. of World EconomicForum. Print.



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nominal ICT investment per worker growth in Canada still outperformed that of the United States

(3.1 per cent versus 1.7 per cent). Nominal investment trends among the three ICT components

differed considerably in the two countries, especially regarding communications equipment

investment, which rose 2.7 per cent in Canada, but fell 10.3 per cent in the United States. Nominal

computer investment fell in both Canada and the United States in 2009 (-6.8 per cent and -9.8 per

cent respectively) and nominal software investment rose in both countries (4.0 per cent and 0.3 per

cent).28

Policy 1

In terms of knowledge dissemination I look at State provided technological infrastructure.

Obama states, ―Our technological infrastructure has been neglected, threatening the ability of

American businesses to compete with the rest of the world.‖ The United States once led the world in

broadband deployment, but now that leadership is in question. Wireless networks in many countries

abroad are faster and more advanced.29 Rankings of various national ICT use indicators support this.

In 2010 the US was ranked 21st for overall ICT use, 17th for Internet users, 16th for broadband Internet

subscriptions, 29th for Internet bandwidth. Looking specifically at businesses, they were ranked 17 th

for technological readiness, 12th for technological adoption, 11th for firm-level technology absorption,

and 55th for FDI and technology transfer.30 A specific policy measure would include enhancing

public broadband access and infrastructure.

Policy 2

In terms of assessing the quality of communication Weitzner, Associate Administrator for

Policy for the National Telecommunications and Information Administration, highlights that the

Commerce Department‘s decision to address online privacy and other Internet policy issues stems

from the significant and growing social and economic contributions that the Internet makes to our

lives. For example, domestic online transactions are currently estimated to total $3.5 trillion annually,

and digital commerce is a leading source of job growth. ―Preserving consumer trust is essential to the

28 Andrew Sharpe and Jean-Francois Arsenault. The Canada-US ICT Investment Gap: An Update. Publication no.

2008-1. Centre for the Study of Living Standards, 2008. Print29 United States, National Economic Council 5. 30

Klaus Schwab. "The Global Competitiveness Report 2009-2010." Proc. of World Economic Forum, Switzerland,

Geneva. Print.



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sustainability and continued growth of the digital economy,‖31 said Weitzner. A specific policy to

increase government regulation of Internet transactions is crucial to restoring trust within the

digital economy.

Policy 3

The data collected by Martinez et al. is crucial for assessing the total factor productivity

effects of domestic ICT investment. Specific technological change in the US economy over the

period 1980 – 2004 is mainly due to technological progress embedded in ICT capital assets. While the

contribution of ICT-specific technological change to productivity growth is about 0.73% points,

which of non-ICT capital assets is only 0.16% points. More interestingly, the contribution of ICT

increases from the mid 1990s, while the contribution of non-ICT capital inputs decreases. 32 One

major implication of this Martinez‘s paper is that ICTs have different effects on economic growth

depending on what stage the economy is in with respect to the process of introduction and use of new

technologies. The case of the U.S., a pioneering country in the massive use of ICTs, is revealing. In

the first stage, the main positive effect of ICT capital inputs comes from using new equipment linked

to new technologies. More data access for SMEs is the complementary information service to

promote efficiency. Larger firms usually have an R & D department or CTO to address this

information access concern. Policies improving accessibility to data, that larger firms usually

have due to high ICT use, is required as a complementary service of the U.S. Department of

Commerce. My policy analysis will elaborate on how the CIO‘s move to provide public data centersis a viable first step to promoting domestic ICT use.

State ICT Integration in Bureaucracy

The Global IT report provides rankings on government ICT use. The political and regulatory

environment of the U.S. ranks 19th, their government ICT readiness ranks 13th, and their government

usage ranks 4th.33 The high ranking of usage may be misleading given testimonial evidence exhibiting

lack of capability or understanding of ICT use within government personnel. However, please see

Appendix A for examples initiatives the CIO has undergone over the past year since their inception.

31 Daniel J Weitzner. "Internet Privacy Policy, User Empowerment and Do Not Track." Speech. Consumer WatchdogPolicy Conference: The Future of Online Consumer Protections. DC, Washington. National Telecommunications and

Information Administration. United State Department of Commerce, 1 Dec. 2010. Web. 10 Dec. 2010.32 Martinez et al. 8.33

Soumitra Dutta and Irene Mia 19.



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Policy 4

The Upjohn institute for Employment Research and the National Academy of Public

Administration concluded many measurement issues arising from the growth of globalization,

specifically in their use of statistical knowledge. The research papers highlight critical data gaps and

deficiencies that impede our ability to measure accurately the economic impact of globalization on

the U.S. economy, and its workers. Besides spotting limitations of the currently constructed price

indexes; more pertinent to the use of ICT is the issue they identified of data gaps that impede the

U.S.‘s ability to measure the extent of services off-shoring and the impact of such activity on the U.S.

labor market.34 Improved data sharing, among federal statistical agencies is one of the key

recommendations emerging from the conference.

Policy 5

The Department of Commerce‘s internal and external communication is impeded with the

improper use of implemented ICT. As objective and Generation Y observers in their early twenties,

the younger interns of the office reached consensus that there is a shockingly low level of basic

technology knowledge and capability for use. The time our superiors set aside for us to partake in

database training, e-mail training, and digital security training seemed extremely elementary for all

six interns. We were seemingly allotted ten-fold more time and instruction, than needed, for tasks

regarding technology use. Not only are improvements necessary for the efficacy of using existing

technology, but the ability to adapt to new forms of technology – as much was introduced over the four months we were there — is essential for reducing issues of information redundancy. There is a

difference between teaching how to use individual office systems, and the acumen of interloping

different office systems.

I could provide a plethora of testimonial evidence attesting to this inefficient technology use;

the interns‘ experience; the opinions of various State personnel and businesses we supported; as well

as prominent members of the Foreign Service community. However, the current state of

communication and U.S. diplomatic affairs may be more indicative of overall ignorance towards the

nature of digital technology within office operations. Wikileaks, a non-profit organization that

publishes submissions of otherwise unavailable documents from anonymous news sources and leaks,

recently dispelled more than 250,000 secret and potentially damaging diplomatic cables. Much of the

discussion right now is about the lapse in security, the misuse of the technology. Security experts are

34 Susan N Houseman. Conference Summary. Proc. of Measurement Issues Arising From the Growth of Globalization,DC, Washington. 2009. Print. 3.



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trashing the U.S. for its slack methods of encryption and monitoring. The criticisms are well deserved.

However this is arguably just a reflection of how digitally illiterate the government may be in

understanding the relationship between new technologies, new methods of open communication and

old human nature‖35 Either a private third party or expertly managed, interoperable system

would dispel communication failures. My policy analysis proposes a ready-to implement model to

solve this issue.

Policy 6

Finally the non-receptiveness of new ICT could play detrimental to the productivity levels of

the department and subsequently the efficacy of the NEI. The LexisNexis Technology Gap survey

addresses the generational divide and an authoritative personnel‘s conservative bias towards ICT. The

study examines how technology is used in the American workplace. These findings are indicative of

the nature of the Commerce department, as most employees are former members of the private-sector

workplace.

The survey compared technology and software usage among generations of working

professionals; Boomers (ages 44-60), Generation X (ages 29-43) and Generation Y (ages 28 and

younger). The total sample size was 700 legal and white-collar professionals with 250 coming from

the legal profession. According to the survey: Two-thirds of all Boomers agree that Personal Digital

Assistants (like the Blackberry, for example) and mobile phones contribute to a decline in proper

workplace etiquette, and believe the use of a laptop during in-person meetings is "distracting," lessthan half of Gen Y workers agree. Only 17% of Boomers believe using laptops or PDAs during in-

person meetings is "efficient," while more than one third of Gen Y do. Only 28% percent of Boomers

think blogging about work-related issues is acceptable, while forty percent of Gen Y workers do. 36

In order for organizations to ensure maximum efficiency and productivity, technologies that

capitalize on these emerging trends should be implemented. Policies to address these differing

attitudes include: 1) Investing in technologies and workflow solutions that enhance workplace

productivity rather than increase multi-tasking. 2) Establishing clear guidelines around

acceptable uses of technology in the workplace, as well as providing training on new

technologies. 3) Acknowledging and addressing the significant impact of social networking by

35 "The U.S. Suffers a Colossal Literacy Failure « Literacy 2.0." Literacy 2.0. Web. 11 Dec. 2010.<http://www.literacy20.com/2010/12/the-u-s-suffers-a-colossal-literacy-failure/>.36 LexisNexis. New Study Examines Technology Generation Gap in the Workplace. WorldOne Research, 15 Apr. 2009.Web. 11 Dec. 2010. <http://www.lexisnexis.com/media/press-release.aspx?id=1256847004307201>.



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investing in professional networking solutions.37

Policy Analysis

Seemingly infinite measures arise to improve ICT at the firm and State level. However, many

of these measures go beyond the scope of amending the pre-existing NEI, and it‘s specific goals.

When we return to our original intention of promoting exports and enhancing the efficacy of the NEI,

policy option 3 on the domestic firm level and policy option 5 on the state level are most directly

related to exporting. To further specify real-world solutions, I assert that two initiatives of the CIO

are applicable in the context of the NEI, and can pragmatically address these two policy issues — open

data access and cloud computing respectively.38 Keep in mind that these two goals address the

short-term efficacy of the NEI, and further adoption of CIO policies within the Department of

Commerce should be long-term objectives. Systemic long-term objectives seem to fall greater

under the mandate of the CIO rather than the responsibility of the Department of Commerce.

In short, the CIO aims to help transparency, policy compliance, efficiency, infrastructure,

security and privacy, and effectiveness of the entire U.S. government.39 Two of their specific policies,

falling under the category of efficiency and even targeted at economic development, should be more

integrated into the framework of NEI policies to take greater effect. Open data access plans address

the third option under problems at the firm level. Cloud computing addresses the fifth policy

recommendation, at the State level. Open data access for smaller private firms resolves

complementarity knowledge issues of economic development by helping total factor production.

Cloud computing increases interoperability and increases user-friendly digital communication

systems, which otherwise may seem. Tying back to my theoretical framework, I remind you that

complementarity and interoperability factors are key characteristics of economic development

for the American context (See Economic Growth). Further and specific qualitative details of public

data center access and cloud computing to enhance the capabilities of the government bureaucracy

can be found in Appendix B.

Examining the NEI (See Appendix C), we see that only the eighth and last goal highlights

ICT use. If open data accessibility and cloud computing are integrated as policy measures, they will

37 LexisNexis 1.38 Chief Information Officers Council . Web. 13 Dec. 2010. <http://www.cio.gov/>.39 Chief Information Officers Council .



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provide logistical value and support for implementing the NEI. The seven prior goals can benefit

from the productivity and communication efficiencies if these specific ICTs are implemented at the

Department level.

Problems arise when acknowledging the tremendous diversity of what is contained within the

ICT rubric. Policy in support of ICTs in general might not make as much sense as approaches which

target specific technologies. For example, the rationale for regulating cellphones and the particular

approaches taken will be quite different from those regarding Internet use. Actors within the State

who have expert understanding of all facets of ICT use are crucially valuable. Obama seems to be

enriching his bureaucracy with many expert advisors. Or alternatively, the actual target or intent of

policy regarding ICT may be something much more established and prosaic, like preventing

monopolies or price-fixing, than issues that arise from the innovative nature of the technology itself.

A second point about how politicians and policy-makers think about ICT is what might be

termed medium/message conflation, with often ideologically-driven assumptions about ICTs (the

medium) in actuality derived from assumptions about the information that they deliver (that is, the

message) and furthermore, this may be highly coloured by who has access to specific technologies

(the users). 40 For example in Hilary Clinton‘s her earlier (ideologically driven) statement

about openness and transparency, she was conflating medium with message; in her post-Wikileaks

statements regarding prosecuting Julian Assange, she seems to have discovered the difference

between the two.41These are points, however, that apply to the academic and policy literature overall,

so in a sense, this is less a shortcoming in this paper, but part of a grander contentious issue. I stress

that my policy recommendations address the somewhat normative enhancement of innovation and

efficiency of the National Export Initiative. As well, both specific policy recommendations indirectly

address these issues. Public data access can be considered a mass public good, but is simultaneously

regulated and monitored by the State. Cloud computing employs the expertise and ownership of

efficacy to third party providers.

Conclusion

40 McLuhan 5.41 "Video: Hillary Clinton Attacks WikiLeaks over US Embassy Cables | World News | Guardian.co.uk." The Guardian

UK . 30 Nov. 2010. Web. 11 Dec. 2010. <http://www.guardian.co.uk/world/video/2010/nov/30/hillary-clinton-wikileaks-us-embassy-cables-video>.



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This paper demonstrates ICT‘s implications on U.S. economic policy. It argues that the U.S.

Government‘s use of ICT is the greatest and most underestimated agent for leveraging small business

in global trade and revamping the US economy. It specifically discusses how the U.S. government

should take a more holistic approach for using ICT in their National Export Initiative. It argues for an

ICT policy used in conjunction with the NEI through open data center access and cloud computing

systems.

However, normative questions must be addressed when integrating the use of ICT at any level

of economic activity. As we have seen from the recent Wikileaks scandal, many security questions

are brought to light regarding the government‘s use of new digital communication technology. As

much as the State should strive to expand their innovation and advantage of ICT use, they must

rigorously assess the viability of individual technologies within the current environment. More

specific study of technology use is needed to expand upon my preliminary suggestions.

America brought in a new President for ‗change.‘ President Obama‘s overall administration is

slowly, but surely implementing this in regards to ICT use. Hopefully, the continuous and rigorous

audit of his government‘s efficacy and accountability frees up resources to redirect towards ICT

analysis and investment. Economic implications are just a sliver of potential change we can see with

the rise of Information Communication Technology.



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Appendix A

Taken from Chief Information Officers Council Website42

The U.S. CIO supports President Obama‘s goals of greater transparency, accountability, and citizen participation in Federal Government through the use of innovative IT strategies. The U.S. CIO worksto ensure information security, protect individual privacy, and save taxpayer dollars by creating a

Federal Government that strategically, efficiently, and effectively uses IT to serve and protect U.S.citizens.Governing PrinciplesThe U.S. CIO and the CIO Council establish standards against which the success of all agency programs can be measured, including:◦ monitoring the year-to-year performance improvement of Federal Government programs◦ attracting and retaining a high-performance IT workforce◦ optimizing Federal Government information resources and investments◦ aligning IT solutions with Federal enterprise business processes◦ adopting and sharing best IT management practices

managing risk and ensuring privacy and security

MilestonesSince its inception in 2009, the office of the Federal CIO has launched several initiatives key to thePresident‘s Open Government agenda, including data.gov, an online repository for access toGovernment data, and apps.gov, which guides Federal agencies in adopting cost-efficient,collaborative IT solutions.

President Obama ushered in a new era of government on his first day in office, calling for transparency and open government in his January 21, 2009, memorandum to heads of executive

departments and agencies. The memorandum states, “My Admini stration is committed to creating an

unprecedented level of openness in Government. We will work together to ensure the public trust and

establish a system of transparency, public participation, and collaboration. Openness will strengthenour democracy and promote efficiency and effectiveness in Government.”

The CIO of each Federal agency, department, or bureau is responsible for meeting the policy and

regulatory goals of their organization and the Federal Government. Relevant laws include:

◦ The E-Government Act of 2002

◦ Federal Information Security Management Act of 2002 (FISMA)

42 Chief Information Officers Council. Web. 13 Dec. 2010. <http://www.cio.gov/>.



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◦ Confidential Information Protection and Statistical Efficiency Act of 2002 (CIPSEA)

◦ Government Paperwork Elimination Act of 1998 (GPEA)

◦ Section 508 of the Rehabilitation Act (29 U.S.C. 794d), as amended by the Workforce InvestmentAct of 1998 (P.L. 105-220)

◦ Clinger-Cohen Act of 1996

◦ Freedom of Information Act of 1996 (FOIA)

◦ Paperwork Reduction Act of 1995 (PRA)

Appendix B

Characteristics of Public Data Access43

The CIO aims to provide public data access through Data.gov. ―Data.gov is leading the way indemocratizing public sector data and driving innovation. The data is being surfaced from manylocations making the Government data stores available to researchers to perform their own analysis.

Developers are finding good uses for the datasets, providing interesting and useful applications thatallow for new views and public analysis. This is a work in progress, but this movement is spreadingto cities, states, and other countries. After just one year a community is born around open governmentdata.‖

About

The purpose of Data.gov is to increase public access to high value, machine readable datasets

generated by the Executive Branch of the Federal Government. As a priority Open GovernmentInitiative for President Obama's administration, Data.gov increases the ability of the public to easilyfind, download, and use datasets that are generated and held by the Federal Government. Data.gov

provides descriptions of the Federal datasets (metadata), information about how to access the datasets,and tools that leverage government datasets. The data catalogs will continue to grow as datasets areadded. Federal, Executive Branch data are included in the first version of Data.gov.Changes made to Data.gov are available in the Release Notes section.

Participatory Democracy

Public participation and collaboration will be key to the success of Data.gov. Data.gov enables the public to participate in government by providing downloadable Federal datasets to build applications,conduct analyses, and perform research. Data.gov will continue to improve based on feedback , comments, and recommendations from the public and therefore we encourage individuals to suggest

datasets they'd like to see, rate and comment on current datasets, and suggest ways to improve thesite.We are interested in hearing your ideas and comments about Data.gov.

Goal

A primary goal of Data.gov is to improve access to Federal data and expand creative use of those data

43 Data.gov. Web. 11 Dec. 2010. <http://www.data.gov/>.

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beyond the walls of government by encouraging innovative ideas (e.g., web applications). Data.govstrives to make government more transparent and is committed to creating an unprecedented level of openness in Government. The openness derived from Data.gov will strengthen our Nation'sdemocracy and promote efficiency and effectiveness in Government.

Data Policy Statements

◦ Public InformationAll datasets accessed through Data.gov are confined to public informationand must not contain National Security information as defined by statute and/or ExecutiveOrder, or other information/data that is protected by other statute, practice, or legal precedent.The supplying Department/Agency is required to maintain currency with public disclosurerequirements.

◦ SecurityAll information accessed through Data.gov is in compliance with the requiredconfidentiality, integrity, and availability controls mandated by Federal InformationProcessing Standard (FIPS) 199 as promulgated by the National Institute of Standards andTechnology (NIST) and the associated NIST publications supporting the Certification andAccreditation (C&A) process. Submitting Agencies are required to follow NIST guidelines

and OMB guidance (including C&A requirements).◦ PrivacyAll information accessed through Data.gov must be in compliance with current privacyrequirements including OMB guidance. In particular, Agencies are responsible for ensuringthat the datasets accessed through Data.gov have any required Privacy Impact Assessments or System of Records Notices (SORN) easily available on their websites.

◦ Data Quality and RetentionAll information accessed through Data.gov is subject to theInformation Quality Act (P.L. 106-554). For all data accessed through Data.gov, each agencyhas confirmed that the data being provided through this site meets the agency's InformationQuality Guidelines.As the authoritative source of the information, submittingDepartments/Agencies retain version control of datasets accessed through Data.gov incompliance with record retention requirements outlined by the National Archives and Records

Administration (NARA).◦ Secondary UseData accessed through Data.gov do not, and should not, include controls over itsend use. However, as the data owner or authoritative source for the data, the submittingDepartment or Agency must retain version control of datasets accessed. Once the data have been downloaded from the agency's site, the government cannot vouch for their quality andtimeliness. Furthermore, the US Government cannot vouch for any analyses conducted withdata retrieved from Data.gov.

◦ Citing DataThe agency's preferred citation for each dataset is included in its metadata. Usersshould also cite the date that data were accessed or retrieved from Data.gov. Finally, usersmust clearly state that "Data.gov and the Federal Government cannot vouch for the data or analyses derived from these data after the data have been retrieved from Data.gov."

◦ Public ParticipationIn support of the Transparency and Open Government Initiative,recommendations from individuals, groups and organizations regarding the presentation of data, data types, and metadata will contribute to the evolution of Data.gov.

◦ Applicability of this Data Policy Nothing in this Data Policy alters, or impedes the ability tocarry out, the authorities of the Federal Departments and Agencies to perform their responsibilities under law and consistent with applicable legal authorities, appropriations, and presidential guidance, nor does this Data Policy limit the protection afforded any information by other provisions of law. This Data Policy is intended only to improve the internalmanagement of information controlled by the Executive Branch of the Federal Government



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and it is not intended to, and does not, create any right or benefit, substantive or procedural,enforceable at law or in equity, by a party against the United States, its Departments,Agencies, or other entities, its officers, employees, or agents.

Characteristics of Cloud Computing

Below is from NIST‘s Cloud Computing Definition (Version 15), available via:

csrc.nist.gov/groups/SNS/cloud-computing/cloud-def-v15.doc

Essential Characteristics: On-demand self-service. A consumer can unilaterally provision computing capabilities, such

as server time and network storage, as needed automatically without requiring humaninteraction with each service‘s provider.

Broad network access. Capabilities are available over the network and accessed throughstandard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g.,mobile phones, laptops, and PDAs).

Resource pooling. The provider‘s computing resources are pooled to serve multipleconsumers using a multi-tenant model, with different physical and virtual resourcesdynamically assigned and reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over theexact location of the provided resources but may be able to specify location at a higher levelof abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, network bandwidth, and virtual machines.

Rapid elasticity. Capabilities can be rapidly and elastically provisioned, in some casesautomatically, to quickly scale out and rapidly released to quickly scale in. To the consumer,the capabilities available for provisioning often appear to be unlimited and can be purchasedin any quantity at any time.

Measured Service. Cloud systems automatically control and optimize resource use byleveraging a metering capability at some level of abstraction appropriate to the type of service(e.g., storage, processing, bandwidth, and active user accounts). Resource usage can bemonitored, controlled, and reported providing transparency for both the provider andconsumer of the utilized service.

Deployment Models: Private cloud. The cloud infrastructure is operated solely for one organization. It may be

managed by the organization or a third party and may exist on premises or off premises. Community cloud. The cloud infrastructure is shared by several organizations and supports

a specific community that has shared concerns (e.g., mission, security requirements, policy,

and compliance considerations). It may be managed by the organizations or a third party andmay exist on premises or off premises.

Public cloud. The cloud infrastructure is made available to the general public or a largeindustry group and is owned by an organization selling cloud services.

Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private,community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds).



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Service Models: Cloud Software as a Service (SaaS). The capability provided to the consumer is to use the

provider‘s applications running on a cloud infrastructure. The applications are accessible from

various client devices through a thin client interface such as a web browser (e.g., web-basedemail). The consumer does not manage or control the underlying cloud infrastructure

including network, servers, operating systems, storage, or even individual applicationcapabilities, with the possible exception of limited user-specific application configurationsettings.

Cloud Platform as a Service (PaaS). The capability provided to the consumer is to deployonto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider. The consumer does not manageor control the underlying cloud infrastructure including network, servers, operating systems,or storage, but has control over the deployed applications and possibly application hostingenvironment configurations.

Cloud Infrastructure as a Service (IaaS). The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where

the consumer is able to deploy and run arbitrary software, which can include operatingsystems and applications. The consumer does not manage or control the underlying cloudinfrastructure but has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls).

Appendix C

Taken from the Executive Order - National Export Initiative44

Section 1.

Policy. The economic and financial crisis has led to the loss of millions of U.S. jobs, and while theeconomy is beginning to show signs of recovery, millions of Americans remain unemployed or underemployed. Creating jobs in the United States and ensuring a return to sustainable economicgrowth is the top priority for my Administration. A critical component of stimulating economicgrowth in the United States is ensuring that U.S. businesses can actively participate in internationalmarkets by increasing their exports of goods, services, and agricultural products. Improved export performance will, in turn, create good high-paying jobs.

The National Export Initiative (NEI) shall be an Administration initiative to improve conditionsthat directly affect the private sector's ability to export. The NEI will help meet my Administration'sgoal of doubling exports over the next 5 years by working to remove trade barriers abroad, by helping

firms -- especially small businesses -- overcome the hurdles to entering new export markets, byassisting with financing, and in general by pursuing a Government- wide approach to exportadvocacy abroad, among other steps.

Section 3.

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National Export Initiative. The NEI shall address the following:

(a) Exports by Small and Medium-Sized Enterprises (SMEs). Members of the Export PromotionCabinet shall develop programs, in consultation with the TPCC, designed to enhance exportassistance to SMEs, including programs that improve information and other technicalassistance to first-time exporters and assist current exporters in identifying new export

opportunities in international markets.

(b) Federal Export Assistance. Members of the Export Promotion Cabinet, in consultation withthe TPCC, shall promote Federal resources currently available to assist exports by U.S.companies.

(c) Trade Missions. The Secretary of Commerce, in consultation with the TPCC and, to the extent possible, with State and local government officials and the private sector, shall ensure thatU.S. Government-led trade missions effectively promote exports by U.S. companies.

(d) Commercial Advocacy . Members of the Export Promotion Cabinet, in consultation with

other departments and agencies and in coordination with the Advocacy Center at theDepartment of Commerce, shall take steps to ensure that the Federal Government'scommercial advocacy effectively promotes exports by U.S. companies.

(e) Increasing Export Credit. The President of the Export-Import Bank, in consultation with other members of the Export Promotion Cabinet, shall take steps to increase the availability of credit to SMEs.

(f) Macroeconomic Rebalancing. The Secretary of the Treasury, in consultation with other members of the Export Promotion Cabinet, shall promote balanced and strong growth in theglobal economy through the G20 Financial Ministers' process or other appropriatemechanisms.

(g) Reducing Barriers to Trade. The United States Trade Representative, in consultation withother members of the Export Promotion Cabinet, shall take steps to improve market accessoverseas for our manufacturers, farmers, and service providers by actively opening newmarkets, reducing significant trade barriers, and robustly enforcing our trade agreements.

(h) Export Promotion of Services. Members of the Export Promotion Cabinet shall develop aframework for promoting services trade, including the necessary policy and export promotiontools.

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