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Fear  Nationalization



Fear of U.S. surveillance directly causes Internet nationalization.


WSJ, 6/27/2014. Steve Rosenbush, Editor. “The Morning Download: Nationalization of Internet Continues as Germany Hangs Up on Verizon,” Wall Street Journal, http://blogs.wsj.com/cio/2014/06/27/the-morning-download-nationalization-of-internet-continues-as-germany-hangs-up-on-verizon/.
Good morning. The nationalization of the Internet continues apace. The German government said on Thursday it would end a contract with Verizon Communications Inc. because of concerns that the U.S. National Security Agency had access to customer data maintained by U.S. telecommunications firms, the WSJ’s Anton Troianovski reports. Verizon has provided Internet access and other telecom services to government agencies in Germany. Those contracts will be transferred to Deutsche Telekom AG by 2015, the Interior Ministry said.

As the WSJ reports, the move underscores the continuing political headaches for U.S. technology businesses operating abroad, more than a year after former National Security Agency contractor Edward Snowden started revealing the reach of America’s electronic surveillance programs and the alleged cooperation with some U.S. firms.



Hurts Credibility



It’s specifically wrecked our global negotiating position on Internet freedom.


Adam Bender, 7/23/2013. “Has PRISM surveillance undermined Internet freedom advocates?” Computer World, http://www.computerworld.com.au/article/521619/has_prism_surveillance_undermined_internet_freedom_advocates_/.
The US surveillance program PRISM has severely threatened the continued freedom of Internet advocates, according to Internet Society (ISOC) regional bureau director for Asia-Pacific, Rajnesh Singh.

Recent reports have revealed the NSA, under a program called PRISM, is collecting metadata about US phone calls, which includes information about a call—including time, duration and location—but not the content of the call itself. Also, the NSA is collecting data on Internet traffic from major Internet companies including Google and Microsoft.



What’s happened with PRISM and the fallout we’ve seen is probably the greatest threat we have seen to the Internet in recent times,” Singh said at an ISOC-AU event last night in Sydney.

Singh, who said he was speaking for himself and not necessarily ISOC as a whole, claimed that the spying program has undermined the positions of Internet advocates in the United States, United Kingdom, Canada and Australia, which historically have been “bastions of Internet freedom”.

“What’s happened with PRISM is these four or five countries are suddenly the enemy within,” he said. “The argument [for Internet freedom] doesn’t hold water any more and that’s really made work difficult for us.”



At last year’s World Conference on International Telecommunications (WCIT) treaty talks, countries including Russia, China and Iran made proposals to regulate Internet content that could have had “very bad implications for the Internet going forward”, Singh said.

Many of the proposals were defeated through talks leading up to the treaty, he said. “But what happened of course was that the countries at the forefront were Australia, US, UK [and] Canada.”

After news about PRISM broke, a delegate from another country who had supported the four countries in walking out on the treaty told Singh that they now regretted the decision.

According to Singh, the delegate said, “My government is sorry that we didn’t sign the [WCIT treaty] because now we realise what the real agenda was for the US and Australia and the UK and Canada. It wasn’t to protect the Internet; it was to protect their own surveillance interests.”



Undermines our leverage for international negotiations --- countries turning to Russia and China.


Megan Gates, 7/29/2014. “NSA's Actions Threaten U.S. Economy and Internet Security, New Report Suggests,” Security Management, http://www.securitymanagement.com/news/nsas-actions-threaten-us-economy-and-internet-security-new-report-suggests-0013601.
The report’s authors also suggested that the NSA disclosures have “undermined American credibility” when it comes to the Internet Freedom Agenda. In 2010, the United States began promoting a policy of an open and free Internet, but the recent disclosures about the NSA have “led many to question the legitimacy of these efforts in the past year.”

Concrete evidence of U.S. surveillance hardened the positions of authoritarian governments pushing for greater national control over the Internet and revived proposals from both Russia and Brazil for multilateral management of technical standards and domain names, whether through the International Telecommunications Union (ITU) or other avenues,” according to the report. Many developing nations are now declining to work with the United States and are instead embracing assistance from Russia, China, and the ITU when it comes to Internet availability and control for their citizens.

Seriously harmed our leverage in international debates.


Danielle Kehl et al, July 2014. Policy Analyst at New America’s Open Technology Institute (OTI); Kevin Bankston is the Policy Director at OTI; Robyn Greene is a Policy Counsel at OTI; and Robert Morgus is a Research Associate at OTI. “Surveillance Costs: The NSA’s Impact on the Economy, Internet Freedom & Cybersecurity,” http://oti.newamerica.net/sites/newamerica.net/files/policydocs/Surveilance_Costs_Final.pdf.
Mandatory data localization proposals are just one of a number of ways that foreign governments have reacted to NSA surveillance in a manner that threatens U.S. foreign policy interests, particularly with regard to Internet Freedom. There has been a quiet tension between how the U.S. approaches freedom of expression online in its foreign policy and its domestic laws ever since Secretary of State Hillary Clinton effectively launched the Internet Freedom agenda in January 2010. 170 But the NSA disclosures shined a bright spotlight on the contradiction: the U.S. government promotes free expression abroad and aims to prevent repressive governments from monitoring and censoring their citizens while simultaneously supporting domestic laws that authorize surveillance and bulk data collection. As cybersecurity expert and Internet governance scholar Ron Deibert wrote a few days after the first revelations: “There are unintended consequences of the NSA scandal that will undermine U.S. foreign policy interests – in particular, the ‘Internet Freedom’ agenda espoused by the U.S. State Department and its allies.” 171 Deibert accurately predicted that the news would trigger reactions from both policymakers and ordinary citizens abroad, who would begin to question their dependence on American technologies and the hidden motivations behind the United States’ promotion of Internet Freedom. In some countries, the scandal would be used as an excuse to revive dormant debates about dropping American companies from official contracts, score political points at the expense of the United States, and even justify local monitoring and surveillance. Deibert’s speculation has so far proven quite prescient. As we will describe in this section, the ongoing revelations have done significant damage to the credibility of the U.S. Internet Freedom agenda and further jeopardized the United States’ position in the global Internet governance debates.

Surveillance Hurts Local Efforts




NSA surveillance also crushed the leverage of international civil society groups --- prevents them from lobbying their governments for open Internet.


Danielle Kehl et al, July 2014. Policy Analyst at New America’s Open Technology Institute (OTI); Kevin Bankston is the Policy Director at OTI; Robyn Greene is a Policy Counsel at OTI; and Robert Morgus is a Research Associate at OTI. “Surveillance Costs: The NSA’s Impact on the Economy, Internet Freedom & Cybersecurity,” http://oti.newamerica.net/sites/newamerica.net/files/policydocs/Surveilance_Costs_Final.pdf.
The effects of the NSA disclosures on the Internet Freedom agenda go beyond the realm of Internet governance. The loss of the United States as a model on Internet Freedom issues has made it harder for local civil society groups around the world—including the groups that the State Department’s Internet Freedom programs typically support 203 —to advocate for Internet Freedom within their own governments. 204 The Committee to Protect Journalists, for example, reports that in Pakistan, “where freedom of expression is largely perceived as a Western notion, the Snowden revelations have had a damaging effect. The deeply polarized narrative has become starker as the corridors of power push back on attempts to curb government surveillance.” 205 For some of these groups, in fact, even the appearance of collaboration with or support from the U.S. government can diminish credibility, making it harder for them to achieve local goals that align with U.S. foreign policy interests. 206 The gap in trust is particularly significant for individuals and organizations that receive funding from the U.S. government for free expression activities or circumvention tools. Technology supported by or exported from the United States is, in some cases, inherently suspect due to the revelations about the NSA’s surveillance dragnet and the agency’s attempts to covertly influence product development. Moreover, revelations of what the NSA has been doing in the past decade are eroding the moral high ground that the United States has often relied upon when putting public pressure on authoritarian countries like China, Russia, and Iran to change their behavior. In 2014, Reporters Without Borders added the United States to its “Enemies of the Internet” list for the first time, explicitly linking the inclusion to NSA surveillance. “The main player in [the United States’] vast surveillance operation is the highly secretive National Security Agency (NSA) which, in the light of Snowden’s revelations, has come to symbolize the abuses by the world’s intelligence agencies,” noted the 2014 report. 207 The damaged perception of the United States 208 as a leader on Internet Freedom and its diminished ability to legitimately criticize other countries for censorship and surveillance opens the door for foreign leaders to justify—and even expand— their own efforts. 209 For example, the Egyptian government recently announced plans to monitor social media for potential terrorist activity, prompting backlash from a number of advocates for free expression and privacy. 210 When a spokesman for the Egyptian Interior Ministry, Abdel Fatah Uthman, appeared on television to explain the policy, one justification that he offered in response to privacy concerns was that “the US listens in to phone calls, and supervises anyone who could threaten its national security.” 211 This type of rhetoric makes it difficult for the U.S. to effectively criticize such a policy. Similarly, India’s comparatively mild response to allegations of NSA surveillance have been seen by some critics “as a reflection of India’s own aspirations in the world of surveillance,” a further indication that U.S. spying may now make it easier for foreign governments to quietly defend their own behavior. 212 It is even more difficult for the United States to credibly indict Chinese hackers for breaking into U.S. government and commercial targets without fear of retribution in light of the NSA revelations. 213 These challenges reflect an overall decline in U.S. soft power on free expression issues.

Reversible




It is reversible


Gelb, 10

(Prof-Business & Economic-UH, “Getting Digital Statecraft Right,” Foreign Affairs, 7/28, http://www.foreignaffairs.com/articles/66502/betsy-gelb-and-emmanuel-yujuico/getting-digital-statecraft-right)


All these cases share the same fallacy -- that U.S.-directed methods can spur development in other nations. But U.S. policies seeking to extend freedom through technology can be successful -- if the United States refrains from acting in ways that seem less than sincere, and if it adopts a gradual, rather than transformative, approach. U.S. protests against censorship would seem more convincing if it were not for its own policies restricting Internet freedom. Consider, for example, the United States' questionable prohibition of cross-border trade in Internet gambling. In 2004, the World Trade Organization ruled in favor of Antigua and Barbuda against the United States when the United States banned online gambling services emanating from the twin-island nation. The United States appealed the case and lost, but in the meantime, Antigua's online gambling industry was virtually destroyed. The United States still has not yet satisfactorily resolved this ruling and should do so by conforming to it.

NSA Link




Pressure to nationalize is coming & real – NSA fears are driving it


Goldstein, Writer for the Atlantic, 2014

[Gordon M. Goldstein, The End of the Internet?, http://www.theatlantic.com/magazine/archive/2014/07/the-end-of-the-internet/372301/]


If the long history of international commerce tells us anything, it is this: free trade is neither a natural nor an inevitable condition. Typically, trade has flourished when a single, dominant country has provided the security and will to sustain it. In the absence of a strong liberal ethos, promoted and enforced by a global leader, states seem drawn, as if by some spell, toward a variety of machinations (tariffs, quotas, arcane product requirements) that provide immediate advantages to a few domestic companies or industries—and that lead to collective immiseration over time.

The U.S. has played a special role in the development of the Internet. The Department of Defense fostered ARPANET, the precursor to the Internet. As the network evolved, American companies were quick to exploit its growth, gaining a first-mover advantage that has in many cases grown into global dominance. A vast proportion of the world’s Web traffic passes through American servers.

Laura DeNardis, a scholar of Internet governance at American University, argues that the Internet’s character is inherently commercial and private today. “The Internet is a collection of independent systems,” she writes, “operated by mostly private companies,” including large telecommunications providers like AT&T and giant content companies such as Google and Facebook. All of these players make the Internet function through private economic agreements governing the transmission of data among their respective networks. While the U.S. government plays a role—the world’s central repository for domain names, for instance, is a private nonprofit organization created at the United States’ urging in 1998, and operating under a contract administered by the Department of Commerce—it has applied a light touch. And why wouldn’t it? The Web’s growth has been broadly congenial to American interests, and a large boon to the American economy.



That brings us to Edward Snowden and the U.S. National Security Agency. Snowden’s disclosures of the NSA’s surveillance of international Web traffic have provoked worldwide outrage and a growing counterreaction. Brazil and the European Union recently announced plans to lay a $185 million undersea fiber-optic communications cable between them to thwart U.S. surveillance. In February, German Chancellor Angela Merkel called for the European Union to create its own regional Internet, walled off from the United States. “We’ll talk to France about how we can maintain a high level of data protection,” Merkel said. “Above all, we’ll talk about European providers that offer security for our citizens, so that one shouldn’t have to send e-mails and other information across the Atlantic.”

Merkel’s exploration of a closed, pan-European cloud-computing network is simply the latest example of what the analyst Daniel Castro of the Information Technology and Innovation Foundation calls “data nationalism,” a phenomenon gathering momentum whereby countries require that certain types of information be stored on servers within a state’s physical borders. The nations that have already implemented a patchwork of data-localization requirements range from Australia, France, South Korea, and India to Indonesia, Kazakhstan, Malaysia, and Vietnam, according to Anupam Chander and Uyen P. Le, two legal scholars at the University of California at Davis. “Anxieties over surveillance … are justifying governmental measures that break apart the World Wide Web,” they wrote in a recent white paper. As a result, “the era of a global Internet may be passing.”



Security concerns have catalyzed data-nationalization efforts, yet Castro, Chander, and Le all question the benefits, arguing that the security of data depends not on their location but on the sophistication of the defenses built around them. Another motive appears to be in play: the Web’s fragmentation would enable local Internet businesses in France or Malaysia to carve out roles for themselves, at the expense of globally dominant companies, based disproportionately in the United States. Castro estimates that the U.S. cloud-computing industry alone could lose $22 billion to $35 billion in revenue by 2016.

The Snowden affair has brought to a boil geopolitical tensions that were already simmering. Autocracies, of course, have long regulated the flow of Internet data, with China being the most famous example. But today such states are being joined by countries across Asia, the Middle East, and Europe in calling for dramatic changes in the way the Web operates, even beyond the question of where data are stored.


NSA fears spur internet balkanization efforts – fear the U.S.


Ray, Security Analyst at 21CT, 2014

[Tim ray, The Balkanization of the Internet, http://www.21ct.com/blog/the-revolution-will-not-be-tweeted-the-balkanization-of-the-internet-part-2/]


NSA SURVEILLANCE STIRS THE POT (AND PROVIDES COVER)

While countries are struggling with their own versions of this scenario and with how to spin this frightening picture of the new Balkanized Internet, they were handed a great gift: Edward Snowden’s tales of NSA’s global surveillance operations.

Suddenly, there’s a common enemy: America. Globally adventurous, the Americans (it seems) are also watching everyone they can, sometimes without permission. Snowden’s revelations alone will not be enough to force through the kinds of national controls we’re talking about, but they are a great start, a unifying force.

Sound farfetched? Maybe. Are there other answers? Perhaps. Brazil is moving forward with nationalizing its email services as well as plans to store all data within the country’s borders. The idea there is the same as the example above: take essential services in-country in order to prevent the U.S. from spying on them and (as a side effect) control them too. These proposals seem to be receiving some popular support; many see it as akin to nationalizing their oil, or another resource. Taking local control of formerly global services is the beginning of Balkanization for countries that choose that path.




Surveillance Fears



Surveillance fears drive nationalized internets


NPR 10 – 16 – 13

[Are We Moving To A World With More Online Surveillance?, http://www.npr.org/sections/parallels/2013/10/16/232181204/are-we-moving-to-a-world-with-more-online-surveillance]


Suspicion Of American Surveillance

But McLaughlin sees that record now in jeopardy.

"We've kind of blown it," he says. "The global fear and suspicion about American surveillance is pushing countries to centralize their [Internet] infrastructures and get the U.S. out of the picture. Ultimately, I think that will have negative consequences for free speech as well as for protection of privacy."

Some of the countries pushing for more international control over the Internet were never all that supportive of Internet freedom, like Russia and China. But they've now been joined by countries like Brazil, whose president, Dilma Rousseff, was furious when she read reports that she was herself an NSA target.

Speaking at the United Nations last month, Rousseff called for a new "multilateral framework" for Internet governance and new measures "to ensure the effective protection of data that travel through the Web."

At home, Rousseff has suggested that Brazil partially disconnect from U.S.-based parts of the Internet and take steps to keep Brazilians' online data stored in Brazil, supposedly out of the NSA's reach.

But Schneier says such moves would lead to "increased Balkanization" of the Internet.


PRISM link




PRISM revelations crushed our credibility on Internet freedom. We’re perceived like the CCP even if our Internet is actually still relatively free.


Abraham Riesman, 6/7/2013. Journalist and documentary filmmaker living in Manhattan. “Renowned Rights Watchdog to Downgrade United States in Freedom Rankings,” Slate, Future Tense, http://www.slate.com/blogs/future_tense/2013/06/07/prism_hurts_us_internet_freedom_rankings_freedom_house_to_downgrade_america.html.
If you thought the astounding (and ongoing) revelations about the NSA’s PRISM regime were going to hurt America’s reputation, it appears you were right. Freedom House just made it official.

In an exclusive statement to Future Tense, the internationally renowned rights watchdog said it’s going to downgrade the U.S. in its annual Internet freedom rankings.

“The revelation of this program will weaken the United States’ score on the survey,” the organization told me in an email.

The project director for Freedom House’s Freedom on the Net initiative, Sanja Tatic Kelly, elaborated further in another email (emphasis added):



[S]ome of the recent revelations were already known to the internet freedom community, albeit perhaps not the full scope of them. Consequently, the United States already has a pretty poor rating on our methodology when it comes to surveillance issues. However, with this week's revelations, as well as the recently uncovered surveillance of AP journalists, that rating is going to drop even further.”

Kelly went on to emphasize that, compared with other countries around the world, the U.S. “does still have pretty well functioning political institutions and free press.” However, she added that PRISM poses “unique” challenges to freedom. In her words:



What makes the situation in the U.S. unique, however, is that our government is more technologically sophisticated than most others and many major internet companies are based in the United States, allowing the government to conduct surveillance of much greater magnitude.

The official Freedom House statement made a point of saying America’s online freedom ranking probably won’t plummet, noting, “the effect will likely be fairly modest, as the current score takes into consideration what was already known about the government’s extensive electronic surveillance activities.”

As of September, Freedom House listed the United States as the second-most “free” country in terms of Internet freedoms (within a 47-country sample), outranked only by Estonia. The rankings were based on three general criteria: “Obstacles to Access” (e.g. keeping citizens from being able to access computers or specific applications), “Limits on Content” (e.g. blocking, censoring, or altering online content), and “Violations of User Rights” (e.g. surveillance or jailing of online dissidents). The PRISM revelations have nothing to do with the first two criteria, but definitely deal a huge blow on the third.

The Obama administration is already being compared to the Chinese Communist Party—arguably the world’s most infamous limiter of online freedoms. No doubt, PRISM makes the U.S. government (as well as the government of the U.K., which seems to have been in on the action) look like an opponent of the open Web, snooping through files and communications. But as massive as this digital espionage effort is, can we really call the U.S. an “Enemy of the Internet,” to use the terminology of Reporters Without Borders?

Not exactly—but PRISM does to an extent resemble the surveillance programs of Internet enemies like China, Russia, and Saudi Arabia. What’s new here is that we can even mention America in the same sentence as those countries now, when it comes to online freedom—something that was almost unthinkable just a few days ago.

For some perspective, let’s take a look at how the U.S. government now stacks up against some of the world’s best-known online oppressors (Note: in an attempt to avoid too many apples-and-oranges comparisons, I’ve tried to focus mostly on countries with high Internet penetration and a substantial middle class):

China: One big similarity here: the relationship between the central government and private companies. Chinese netizens live in the shadow of restrictions that are collectively referred to as the “Great Firewall of China.” As of 2010, a law has been in place that requires all telecom operators and Internet service providers to take orders from the government during investigations about the leaking of state secrets. PRISM appears to have functioned largely via some level of cooperation from major online firms like Microsoft, Google, Facebook, and Apple (though many of them have issued official denials of involvement). If you’re online in China, unless you use a VPN or some other kind of workaround, there is an extremely high chance that you’re being tracked. If PRISM is as widespread as is alleged, that could very easily be true here, too.

Of course, China’s online repression is far more extreme than America’s on almost every other count (if we jailed bloggers here like the CCP does there, Glenn Greenwald would be serving hard time, not getting on the front page of theGuardian). And the U.S. doesn’t appear to have been looking for anything beyond national-security information, as opposed to touchy political speech. But the combination of a huge Internet user base and cooperation between corporations and the government to spy on that user base—well, that seems a little too familiar now.

Russia: It’s actually possible that Russian netizens are under less surveillance than we are here in the United States. Despite its best efforts, the Russian government doesn’t appear to have any coherent infrastructure for massive surveillance. ISPs are required to install software that allows the police to monitor Internet traffic, but there have been no reported uses of the software. Government technology to find and flag “extremist” sites has been faulty and remains unimplemented. Legislation passed in 2007 gave the government permission to intercept online data without a warrant, but actual use of that law has largely been absent in major population centers like Moscow and St. Petersburg.

That doesn’t mean Russia doesn’t attack online freedoms, of course. Bloggers are regularly intimidated, the state demands that ISPs provide user data for dissidents, and so on. But what’s interesting to see here is that the U.S. appears to have a surveillance system that is so streamlined and efficient as to be the stuff of dreams for the Putin regime.

Iran: Luckily, PRISM doesn't get anywhere near the aggressive attacks on user rights that Iranian netizens face. That said, Iran has a relatively high Internet usership for the Middle East—users just can't surf freely. The mullahs make no secret of their contempt for free speech, enforcing laws against any material opposing state interests or Islam. Surveillance is widespread, too: The regime reportedly keeps connection speeds deliberately low, so as to make it easier to monitor and filter content. Indeed, Iran is in the process of completing a so-called "clean Internet"—a self-contained, state-controlled intranet that will be used as an alternative to the Internet. We're still a far way off from anything like that.

Bahrain: The U.S. doesn’t go nearly as far as this tumultuous monarchy, but it has a similar philosophy of keeping its fingers in as many online pies as possible. Bahrain’s Internet usership is possibly the highest of any Arab state, but virtually no user is safe from the government’s watchful eye. As Reporters Without Borders puts it, “The royal family is represented in all areas of Internet management and has sophisticated tools at its disposal for spying on its subjects.” Not only that, but the government makes no secret of its iron fist: It regularly hacks dissidents’ Twitter and Facebook accounts, demands online passwords during interrogations, and uses malware to trawl every corner of the Bahraini Web. America is nowhere near that, thank goodness.

South Korea: User liberties are severely curtailed in this otherwise pretty liberal democracy, but not through a PRISM-like surveillance regime. Instead, the government in Seoul keeps tabs on netizens through what's known as Resident Registration Numbers. They're serial numbers assigned to every citizen born in Korea, and users are required to use them while using almost all online services. They're not spied upon, per se, but if someone does something Seoul doesn't like, he or she can face arrests, raids, or other unpleasantness. (See the case of Park Jung-geun, indicted for retweeting the official North Korean Twitter account.) We don't have anything resembling RNNs in the U.S.

North Korea: Even the most paranoid civil libertarian can take some comfort in knowing we're light years away from the Hermit Kingdom. We may be under watch, but at least we have the Internet, instead of a weird national intranet filled withsanitized information and happy-birthday messages.

So the U.S. is still one of the freer places to be an Internet user. But we’re apparently much closer to these authoritarian states than many of us had imagined—and the scary thing is, we’re really good at what we do. Our days as a respected beacon of near-total online liberty are probably at an end.




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