Internet restrictions have long-term economic costs: Daniel Castro

Internet restrictions have long-term economic costs: Daniel Castro

Technology

Says internet disruptions not only hinder economic growth but also limit employment opportunities

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ISLAMABAD (Mariam Ellahi) - Daniel Castro, Vice President of the Information Technology and Innovation Foundation (ITIF) in the United States, spoke to a select group of journalists in Islamabad about internet restrictions in Pakistan and their broader implications.

He described these restrictions as “a puzzle” and “an anomaly” and said, “It is almost this anomaly here to see a more advanced digital economy doing that attack basically to itself, taking people offline.” He further added, “Most of the arguments for shutdowns is that it is good for political stability, or maybe political power in the short term. And my argument would be that economic stability that you would get from not having shutdowns outweighs any short-term benefits.”

Castro explained that internet disruptions not only hinder economic growth but also limit employment opportunities, commercial activities, and the potential for better wages. He remarked, “Just like you wouldn’t want to shut down all the roads or all the ports of entry, if there was some kind of harmful content coming in or harmful products coming in, instead you go out, you spot that specific content, you take down certain things.”

He highlighted the adverse effects of these restrictions on freelancers and online professionals in Pakistan. He stated, “The problem is you can’t get paid those global rates if you can’t get onto your Zoom meeting, if you’re not basically able to deliver to your client because you’re kicked offline, or if you have slow internet connections because of some of the shutdowns.”

Castro also addressed the challenges faced by women running small businesses from their homes. He said, “When Twitter is taken down, that actually hugely impacts her source of revenue because it impacts where she’s actually getting her clients.”

On global trends, Castro observed that governments worldwide are attempting to balance internet freedom and control. He said, “Some global companies are turning away from Europe due to regulatory policies issues. These companies are looking at the rest of the world and other places to invest.”

Discussing artificial intelligence (AI), Castro emphasized that the growing adoption of AI is also influencing internet policies. He stated, “These companies are looking at... where they can grow their... research labs, where they can have their talent hubs. Things like not having connectivity, that’s a factor that will impact where they invest.”

In conclusion, Castro urged, “We must view the internet as a fundamental utility, like roads and bridges, because development is impossible without its availability"