The Internet and the Need for Governance: Learning from the Past, Coping with the Future

Prabir K. Neogi () and Arthur J. Cordell ()
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Prabir K. Neogi: London University
Arthur J. Cordell: Carleton University

Journal of Internet Banking and Commerce, 2010, vol. 15, issue 2, 01-30

Abstract: Every economy requires a physical, institutional and legal infrastructure, as well as understandable and enforceable marketplace rules, in order to function smoothly. In this paper the authors maintain that the building of such an infrastructure, which provides trust and confidence for all those who operate in or are affected by it, is a necessary condition for the development and efficient functioning of a global, digital economy. They also show that costs will result if the global economy has to function on the basis of distrust, both at the individual and transaction level. Although the Internet has transformed the economy, society and politics, it was never designed and built for global, ubiquitous and secure commercial use. While the technology is new, the need for trust, confidence and security remains. The Internet is an open network where there is no outside body that can administer sanctions. In this respect, it appears to be unique in commercial history. One characteristic of the public Internet is that, since it consists of many thousands of autonomous networks spanning a large number of jurisdictions, it has no well defined oversight mechanism that can administer sanctions. Drawing upon the lessons of history and historical analogies, the authors indicate some possible solutions. For the Internet to achieve its maximum social and political potential there will have to be agreed upon and effective rules of the road, both nationally and globally.

Keywords: Internet; Trust; Governance; Oversight (search for similar items in EconPapers)
JEL-codes: P37 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ris:joibac:0429

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