InformationWeek

July 21, 1997

Management Agenda: Framework For Progress
It's fashionable to knock everything in Washington, but we should support Clinton's current Internet initiative

By Lawrence Magid

Photo of Lawrence Magid I'm not sure which is harder to predict-politics or technology. Current wisdom holds that the speed of technological innovation doubles every 18 months. But what's hot and cold in Washington changes even faster. A little more than a year ago, Congress voted to restrict freedom of speech in cyberspace by passing the Communications Decency Act. Few insiders were shocked when the Supreme Court upheld a lower-court ruling by striking the CDA down last month, but lots of people where surprised when President Clinton on July 1 announced the Framework for Global Economic Commerce .

The framework is based on a set of five principles:

The private sector, not government, should lead the way;

Governments should avoid undue restrictions on E-commerce;

Where governmental involvement is needed, its aim should be to support and enforce a predictable, m inimalist, consistent, and simple legal environment for commerce;

Governments should recognize the unique qualities of the Internet;

Electronic commerce over the Internet should be facilitated on a global basis.

The framework was written by senior White House adviser Ira Magaziner, and is practically a manifesto for laissez-faire capitalism on the Net. That may come as a surprise to those who associate Magaziner with big government because of his role as chief architect of Clinton's defeated health-care reform initiative. But many people don't realize that his health-care proposal was less a revolutionary step toward big government than it was toward getting American health-care policy in line with the rest of the developed world.

In the case of the Internet, Magaziner isn't getting America in line with anyone. He's trying to put us at the head of the line-and rightly so. Although the Internet is becoming a global phenomenon, it is an American invention-created and nourished by our government and only recently led by the private sector.

Although the President and Vice President have signed on to the framework, it's far from a done deal. Not only does it need to win the support of Congress and the private sector, it needs to be sold to local and state governments in the United States as well as governments around the world.

The report doesn't call for a completely hands-off approach. The White House acknowledges that some form of government intervention "may be necessary to ensure the safety and soundness of electronic payment systems." There remains a role for the government, along with industry and parents, in protecting children not just from pornography, but from those who would use information gathered from children to violate their privacy and security.

Even adults need some protection. "Data gatherers," says the framework, "should inform consumers what information they are collecting and how they intend to use such data. Consumers should also have a "meaningful w ay to limit use and reuse of personal information."

I'm not naive enough to believe that this or any other administration is going to fully let go of any efforts to regulate cyberspace. Consider encryption: Law enforcement and security influences at the White House are winning the battle with those at 1600 Pennsylvania Ave., who agree with most industry leaders that as Americans, we must have the right to develop, deploy, and export strong encryption technology to promote security, privacy, and commerce. Nevertheless, the framework goes a long way in the right direction. While it's fashionable to knock everything that happens in Washington, this initiative deserves our support.

Lawrence Magid is the author of The Little PC Book (Peachpit Press). You can reach him at lmagid@cmp.com or visit his Web site at www.larrysworld.com .

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