15 April 1998
Source: http://www.doc.gov/ops/ecom.htm

Thanks to Jay Holovacs

    U.S. Department of Commerce
    Wednesday, April 15, 1998
    Contact: Mary F. Hanley
    202-482-4883

    Remarks by U.S. Secretary of Commerce William M. Daley--
    "The Emerging Digital Economy" [Executive Summary]

         Good morning.  And welcome.  I am delighted all of you could
    be here.  And I especially want to thank the Information
    Technology Policy Council for helping to organize this.

         For several months, we have  looked at the economic impact
    of information technologies.  And I told my staff on this day,
    April 15th -- of all days -- I want to release the study.

         As you know, this year when American taxpayers pay up, we
    will spend less than they send in.  The last time that happened,
    IBM was not yet a member of the Dow; and there were no
    Microsofts, or Worldcoms, or Yahoos.  In fact, as I look around,
    I think half of your companies weren't around 30 years ago.

         Obviously, we arrived at this day because President Clinton
    and Congress took the hard medicine of downsizing and cutting
    programs.  But the President would be the first to say that the
    natural strength of America -- our entrepreneurs, all of you --
    also brought us here.

         So, the symbolism is clear:  American technologies have
    strengthened our economy to the point that this tax day, we are
    in the black.

         Let me say one more thing, before I go through the numbers.
    This is about more than e-commerce, or e-mail, or e-trades, or e-files.
    It is about the "e" in economic opportunity.  It is about
    the "e" in empowering businesses, workers, and consumers in ways
    that have never been done.  It is about making sure this  works
    to the benefit of all our businesses -- large and small, old and
    new, service or manufacturing.

         This is about whether we can give workers the skills to be a
    part of this.  And whether this is what American consumers want,
    because in the end, they have all the votes.  You can hook them
    up, but consumers have to like it, or the technology loses this
    election!

         When I read papers, I see articles about the Internet
    focused on negative issues.  Things like pornography, identity
    theft, or electronic pirating.  You and I know these are only by-products
    of something  much larger, and with a much more positive
    impact on people's lives.

         The report I am releasing today, called the Emerging Digital
    Economy, documents the importance of information technologies to
    our economy, to our businesses, and to our consumers.  This is a
    work in progress.  It will help us make better policy decisions;
    and you in business make better business decisions.  And, the
    American people need to hear this side of the Internet, too.

         So, with this in mind, look at some charts.

         I am pleased to announce that in the last five years,
    information technologies have been responsible for more than one-quarter
    of real economic growth.

         During a time when 15 million new jobs have been created,
    unemployment is the lowest in 24 years, inflation is the lowest
    in 30 years -- let me say this again:  more than one-quarter of
    the growth comes from information technologies.

         You have demonstrated this is the best time in America to be
    in business, and I, personally, thank you for that.

         Next, as you can see, this industry now makes up more than 8
    percent of our economy.  And in our review, we found computer and
    communications industries growing at more than double the rate of
    the economy.

         Next, these investments in information technologies account
    for over 45 percent of all business equipment investment -- up
    from 3 percent in the 1960s.

         Our report shows companies are investing in these
    technologies to boost productivity and efficiency.  Already, in
    industries like communications, insurance, and brokerage houses,
    they constitute over three-quarters of all equipment investments.

         Next, you can see that declining prices of information
    technology products have lowered overall inflation by one full
    percentage point.

         Finally, and this is important, these jobs pay well -- very
    well.  There are 7.4 million people working in this field.  They
    earn close to $46,000 annually -- 64 percent more than the
    private sector average.

         And even with the big paychecks, there are more jobs than
    people with the skills to fill them.  We will require 1.3 million
    new information technology workers over 10 years.  That is more
    people than build cars and trucks at the Big Three.

         The President asked me to see what we can do to expand the
    pool.  But, to be honest, in this economy, where new industries
    emerge overnight, and new talents are needed, I feel businesses
    have to take on new responsibilities.

         We want you to work with us to help people make the shift
    into changing jobs.  We need you to retrain workers, whose skills
    may be obsolete.  And we need you to work more closely with
    schools.

         I see it happening.  When CEOs are faced with turning away
    business because they cannot find the right people, they are
    serious about changing.

         Let me give you a few more numbers.  Last year, 100 million
    people logged onto the Internet, up from 40 million the year
    before.  That is faster than the phone, TV, and radio were
    adopted.

         When President Clinton took office there were only 50 -- 50
    -- web sites.  Now, 65,000 are being added -- every hour.

         Those are impressive numbers, no doubt.  But the question we
    have to ask is:  are businesses truly reshaping themselves?  Or
    are they just dancing around here?

         The answer is a big yes to true re-invention.

         General Electric went on line to find suppliers -- and cut
    costs tremendously.  In two years, GE plans to buy $5 billion of
    goods over the Internet, and expects to save $500 million.

         Dell Computers saw 1997 Internet sales increase from less
    than $1 million per day in January -- to daily sales of $6
    million several times in December.

         Cisco Systems closed 1996 with $100 million in sales on the
    Internet.  By the end of 1997, sales topped $1 billion.

         It is small businesses, too.  When I was in Michigan last
    week, I heard an amazing number:  750 computer-related firms in
    the state export.  This is Michigan, smokestack America -- not
    Silicon Valley.

         E-commerce gives small and medium-sized firms immediate
    access to worldwide markets without the need for overseas trips
    or overseas reps.

         On the retail front, we see two types of distinct activity.
    First, direct access -- as when music is downloaded directly from
    a company to a customer's computer.

         And second, orders for goods to be delivered physically.
    For example, Auto-by-Tel is a web-based automotive marketplace.
    Last year, it generated $500 million in sales and processed
    100,000 purchase requests -- each month.

         So, what is the report telling us?

         That the digital economy is alive and well and growing;
    that some businesses and workers are reaping the benefits; that
    businesses of all sizes should prepare for the digital economy;
    and that, given the new role of electronic commerce, government
    should re-think the way it looks at the economy.

         To that end, at Commerce, I want to improve our surveys that
    measure GDP, in order to better capture the value of these
    technologies.  I have asked Congress for the funds to do so.

         As you know, our approach to e-commerce is that the private
    sector should lead.  Government's role is to establish a climate
    where electronic commerce can flourish.  We prefer private
    contracts over government regulation.  And, where we need to act,
    the private sector should be part of the dialogue.

         I am obviously focusing on adequate protection of
    intellectual property on-line.  It is staggering to think that
    one day people with a computer may get every song ever sung,
    every movie ever made, every creative work ever created.

         My children would tell me: this is big.  It is also big for
    the entertainment industry, and clearly you can see their
    concerns.

         The Administration negotiated two treaties in 1996: the
    World Intellectual Property Organization Copyright Treaty, and
    the Performances and Phonogram Treat.  These set international
    standards for protecting copyrighted works, musical performances,
    and sound recording.

         I am pleased to say that Rep. Hyde recently moved the
    implementing legislation through his Committee.  Senator Hatch is
    also working to move it through his Committee, soon after
    Congress returns.  I am also pleased to say that industry has
    reached an agreement in principle on how to address the potential
    copyright liability of on-line service providers.

         I call on Congress to move quickly to finish the work, so we
    can give a gift to consumers, while protecting the artists.  It
    is important that industry support these measures.  We lead the
    world in creating copyrightable works.  We need to lead the world
    in protecting those works.

         Another key issue is privacy.  To me, this is the make or
    break issue.  Look -- you can offer the best products, the best
    selection, the best distribution.  But consumers need to feel a
    certain level of privacy.

         They know companies can collect vast amounts of information
    and instantly analyze it.  And if they feel when they order a
    plane ticket or buy a stock, that their personal transactions are
    being shared with others, then I say it will be the last time
    they do business on the Internet.

         Last month, in an editorial, Business Week told businesses
    and I quote: "Time is running out.  The public does not trust its
    promises for self-regulation to ensure privacy.  The polls show
    that people don't believe that these voluntary standards are
    working.  It's no wonder that the public wants the government to
    step in immediately."

         Now is the time for industry to act.  President Clinton has
    called for a self-regulatory approach to privacy.  This would
    stand on four pillars:

         One, awareness.  Consumers need to know who is collecting
    personal information, how it will be used, and how they may limit
    disclosure.

         Two, choice.  Consumers should have an option as to if and
    how their personal information is used.

         Three, data security.  Companies with personal information
    must take reasonable measures to assure reliability and
    protection from loss, misuse, alteration, or destruction.

         And, four, access.  Consumers should have reasonable access
    to personal records held by companies and be able to correct or
    amend them.

         The truth is, industry has been slow to put these
    protections in place.  While the pace has picked up recently,
    the July 1st deadline when I report the progress to the President
    is looming.  I very much want this to be a positive report.  And
    I would like to use this opportunity to encourage industry to
    meet this challenge.

         I hope you move quickly to establish an overarching, self-regulatory
    effort that includes consumer representation.

         Let me say, I am also working quickly to end federal
    involvement in Internet addressing.  We have put forward a plan.
    We are reviewing the comments.  And we will move ahead to put
    this into private hands.

         We are also working to develop a uniform commercial legal
    framework for electronic transactions worldwide.  A key element
    of this is recognition and enforcement of electronic signatures.

         We have recently proposed an international convention that
    supports two goals: recognition of signatures for legal and
    commercial purposes; and expressly allowing a full range of
    authentication technologies and business applications.

         And one last issue I want to address is security, in
    particular, encryption.  Good security is essential.  If you
    don't have confidence your message or transaction will go only to
    its intended destination and will not be intercepted, and read,
    or changed by someone else e-commerce will never fulfill its
    potential.

         The President is trying to pursue a policy that balances law
    enforcement, national security, privacy and commercial interests.
    At the same time, that policy must be pursued in light of the
    realities of a global economy.  This issue cannot be considered
    in a vacuum any more than any other economic issue.

         The reality is that encryption products are rapidly
    multiplying in the global market.  At the end of 1997,
    we estimate there were 656 encryption products in 29 countries
    outside the United States.  There are major producers in Germany,
    Ireland, Canada, Israel and Great Britain.  They are competitive
    with anything U.S. producers can make.  And they can supply
    almost all the needs of computer networks.

         And most of these producers do not need an export license if
    they want to ship encryption software -- a tremendous market
    advantage.  Our policy, ironically, encourages the growth of
    foreign producers at the same time it retards growth here.

         The truth is that while our policy goal -- balance -- is the
    right one, our implementation has been a failure.  We have not
    been able to agree -- amongst ourselves or with the business
    community -- on how to reach that balance.

         We have not been able to agree on what products can be
    exported, on how to implement the policies that we have
    announced, such as that concerning financial institutions.  And
    we have not been able to agree on what we want to encourage
    companies to do or on what we want Congress to do.

         In turn, our own paralysis has made it difficult to persuade
    other nations to pursue policies similar to ours.  Without the
    cooperation of other nations, the global market is rendering our
    policy obsolete.  And I fear that will soon make our products
    obsolete as well.

         The lack of agreement is caused by the unwillingness to
    compromise.  There are solutions out there.  Solutions that would
    meet some of law enforcement's needs without compromising the
    concerns of the privacy and business communities.  But I fear our
    search has thus far been more symbolic than sincere.

         The cost of our failure will be high.  Law enforcement is
    foregoing the opportunity to have some problems addressed, while
    effectively forcing our producers to go overseas or fall off the
    cutting edge of the market.

         The ultimate result will be foreign dominance of the market.
    This means a loss of jobs here, and products that do not meet
    either our law enforcement or national security needs.  We are
    headed down a lose-lose path.  And we have to get back to win-win.

         We've talked a lot about this for several years.  We can
    talk some more.  But without a commitment on all sides to settle
    for less than 100 percent, we are no closer to resolution than we
    were when we began.

         So, I say to you today that I intend to make a renewed
    effort to achieve that willingness to compromise inside the
    government.  And I hope all of you will do the same among your
    colleagues.

         Let me close on this.  Tonight, I travel with President
    Clinton to South America, as we work to bring free trade to the
    hemisphere.  Seventy years ago, Herbert Hoover -- one of my
    predecessors -- was our first president to ever visit South
    America.  Ironically, he went there to inaugurate air mail
    service.

         Knowing President Clinton, he will head straight to a
    school, to check our e-mail service.  He knows, better than
    anyone, that in the information age, no matter where you live,
    we can widen the circle of opportunity, so more people can make
    more out of their lives.

         That is what this report is all about.  It shows -- clearly
    -- that technology is re-shaping this economy and transforming
    businesses and consumers.

         We have made gigabytes of progress.  And, yes, there are
    more challenges ahead.  So, I look forward to working, together,
    to forever change the face of commerce, to provide more economic
    opportunities, and to empower consumers as never before.

         Thank you very much.

                                  -30-

    Date:         Wed, 15 Apr 1998 15:16:26 -0800
    From: "--Todd Lappin-->" <telstar@WIRED.COM>
    Subject:      Re: Commerce Dept Report on E-Commerce
    To: CYBERIA-L@LISTSERV.AOL.COM

    The report is huge, but this is the executive summary.

    --T-->

            THE EMERGING DIGITAL ECONOMY

    The Digital Revolution: In recent years, the U.S. economy has performed
    beyond most expectations.  A shrinking budget deficit, low interest rates,

    a stable macroeconomic environment, expanding international trade with
    fewer barriers, and effective private sector management are all credit with
    playing a role.  While the full economic impact of information technology
    cannot yet be precisely evaluated, its impact has been significant.

    Building Out the Internet: Where advances in telecommunications and
    computing largely occurred side-by-side in the past, today, they converge
    in the Internet.  Soon, virtually all information technology investment
    will be part of interlinked communications systems, whether internal to a
    business, between businesses, between individuals and businesses, or
    individual to individual.

    Electronic Commerce Between Businesses: Internet commerce is growing
    fastest among businesses.  Businesses use the Internet to lower purchasing
    costs, reduce inventories and cycle times, provide more efficient and
    effective customer service, lower sales and marketing costs, and realize
    new sales opportunities.

    Digital Delivery of Goods and Services: Software programs, newspapers,
    airline tickets and music CDs no longer need to be packaged and delivered
    to stores, homes or news kiosks.  They can be delivered electronically over
    the Internet.

    Retail Sale of Tangible Goods: Increasing demands on leisure time and the
    improvement of overnight and second-day delivery services that spurred the
    growth of catalog shopping in the 1980s and 1990s are now leading people to
    shop over the Internet.

    Challenges Ahead: IT and electronic commerce can be expected to drive
    economic growth for many years to come.  To realize this potential,
    however, the private sector and governments face a number of challenges.

    THE DIGITAL REVOLUTION

    The U.S. economy has performed beyond most expectations.  A shrinking
    budget deficit, low interest rates, a stable macroeconomic environment,
    expanding international trade with fewer barriers, and effective private
    sector management are all credited with playing a role.  While the full
    economic impact of information technology cannot yet be precisely
    evaluated, its impact has been significant.

    *       Information technology industries have been growing at more than
    double the rate of the overall economy-they now represent 8.2 percent of
    GDP, up from 4.9 percent in 1985.

    *       IT industries have been driving real economic growth in the 1990s,
    particularly in the last 3 years, where they have been responsible for
    nearly 35 percent of total annual real GDP growth.

    *       Without information technology, overall inflation would have been
    3.1 percent in 1997-more than a full percentage point higher than the 2.0
    percent it was.

    *       Companies throughout the economy are betting on IT to boost
    productivity.  In the 1960s, business spending on IT equipment represented
    only 3 percent of total business equipment investment.  In 1996, IT's share
    rose to 45 percent.

    *       In 1996, 7.4 million people worked in the IT sector and in
    IT-related jobs across the economy.

    *       These workers earned just under $46,000 per year, compared to an
    average of $28,000 for the private sector as a whole.

    *       At almost $56,000 per year, workers in the software and services
    industries were the highest wage earners.  Earnings in these industries has
    been growing at a rate of 6.6 percent per year, versus 3.8 percent for
    total private sector employment.  In 1985, 557,000 people worked in these
    industries.  By 1996, the figure had more than doubled to reach 1.2 million
    workers.

            BUILDING OUT THE INTERNET

    Where advances in telecommunications and computing largely occurred
    side-by-side in the past, today, they converge in the Internet.  Soon,
    virtually all information technology investment will be part of interlinked
    communications systems, whether internal to a business, between businesses,
    between individuals and businesses, or individual to individual.

    *       The Internet's pace of adoption eclipses all other technologies
    that preceded it.  Radio was in existence 38 years before 50 million people
    tuned in; TV took 13 years to reach that benchmark.  Once it was opened to
    the general public, the Internet crossed that line in four years.

    *       In 1994, 3 million people were connected to the Internet.  By the
    end of 1997, more than 100 million people were using the Internet.

    *       Traffic on the Internet has been doubling every 100 days.

    *       The number of names registered in the domain name system grew from
    26,000 in July 1993 to 1.3 million in July 1997.  Over the same period, the
    number of hosts connected to the Internet expanded from under 1.8 million
    to 19.5 million.

    *       Consumer electronics companies, media giants, phone companies,
    computer companies, software firms, satellite builders, cell phone
    businesses, Internet service providers, television cable companies are
    aggressively investing to build out the Internet.  Within the next five
    years, the vast majority of Americans should be able to interact with the
    Internet from their television sets, or watch television on their PCs, and
    make telephone calls from both devices.

            ELECTRONIC COMMERCE BETWEEN BUSINESSES

    Internet commerce is growing fastest among businesses.  Businesses use the
    Internet to lower purchasing costs, reduce inventories and cycle times,
    provide more efficient and effective customer service, lower sales and
    marketing costs, and realize new sales opportunities.

    *       By 2002, Internet commerce between businesses will likely surpass
    $300 billion.

    *       General Electric uses the Internet for procurement.  Its lighting
    division has lowered its purchasing labor costs by 30 percent and its
    material costs by up to 20 percent.  By the year 2000, GE aims to have all
    12 of its business units purchasing materials via the Internet, for a total
    of $5 billion.  Doing so could save the company $500-$700 million over the
    next three years.

    *       The automotive industry has shortened the time it takes to take a
    care from concept to mass production from four to six years to about 30

    months through the use of automation and electronic communication.  They
    now want to shorten the design cycle to less than 24 months by setting up
    teams in different parts of the world and linking them electronically.

    *       At the beginning of 1997, Dell was selling $1 million worth of
    computers via the Internet each day.  By the end of the year, Dell
    regularly sold over $3 million per day via the Internet, and even reached
    $6 million during the holiday season.  Dell estimates that it saves several
    million dollars a year by having basic customer service and technical
    support functions available on the Internet.  Fifty percent of small
    businesses that bought from Dell's Web site in 1997 had never purchased
    from Dell before.  Dell expects to do half its business on the Internet by
    the year 2000.

    *       Boeing spare parts business allows its airline customers around the
    world to check parts availability and pricing, order parts, and track the
    status of their orders on the Internet.  Less than a year after this
    service was launched, about 50 percent of Boeing's customers used it for 9
    percent of all parts orders and a much larger percentage of customer
    service inquiries.  Because of the Internet, Boeing was able to process
    roughly 20 percent more shipments per month in 1997 than in 1996 with the
    same number of data entry people.

    *       Cisco Systems has saved $363 million (approximately 17.5 percent of
    total operating costs) by putting key business applications on the
    Internet.   Its technical support productivity has increased by 200-300
    percent per year, lowering technical support staff costs by $125 million.
    Customers download new software releases directly from Cisco's site, saving
    the company $180 million in distribution, packaging and duplicating costs.
    Having product and pricing information on the Web and Web-based CD-ROMs
    saves Cisco $50 million in printing and distributing catalogs and marketing
    materials.

    *       W.W. Grainger's  (a leading wholesaler of manufacturing supplies in
    North America) revenues from its Web site have been growing 100 percent
    quarter over quarter.  Over 30 percent of its online sales are to new
    customers or incremental sales to existing customers.  More than half of
    all online orders are made when Grainger stores are closed.

    *       Two-thirds of Federal Express' shipping transactions are
    transmitted and received using online services.  The company's own
    proprietary network handles 54 million transactions a day, allowing it to
    keep track of every package FedEx delivers, every step of the way.  Using
    this system, National Semiconductor, a FedEx logistics customer, has seen a
    reduction of its average customer delivery cycle from four weeks to one
    week, and its distribution costs drop from 2.9 percent of sales to 1.2
    percent.

            DIGITAL DELIVERY OF GOODS AND SERVICES

    Software programs, newspapers, airline tickets and music CDs no longer need
    to be packaged and delivered to stores, homes or news kiosks.  They can be
    delivered electronically over the Internet.

    *       Lower sales and marketing costs, increased consumer choice and
    convenience are driving the Internet's increased use in news and

    entertainment, travel, software distribution, securities trading, banking
    and insurance.

    *       Nearly 90 percent of Web users go online to get news and information.

    *       More than 2,700 newspapers and 800 TV stations, and all but three
    of the top 50 magazines have a Web presence.

    *       Up until 3 years ago, print revenues made up 85 percent of
    McGraw-Hill financial information service's sales.  Today, digital products
    account for more than 50 percent of the division's sales.

    *       Airlines are able to drive down costs and generate new revenues
    through the Internet.  Commissions paid to online travel agents are about
    half the commission paid to traditional agents.  Through auctions and
    special "cyberfares"offered to Internet customers, airlines can sell seats
    that otherwise would go unsold.  American Airlines' NetSAAver program has
    generated tens of millions of incremental revenues since its launch in
    March 1996.

    *       Travelocity and EasySABRE book $4 million in travel sales each
    week, up from $1 million in January 1996.  Two years after its launch,
    Travelocity has 2 million registered members.

    *       By the year 2000, online travel sales could reach $5 billion, or
    close to 7 percent of U.S. airlines' revenues for passenger air travel.

    *       It costs about a penny to conduct a banking transaction using the
    Internet and more than one dollar if handled by a teller at a branch bank.
    In 1997, 4.5 million households were banking online.  By the year 2000, as
    many as 16 million households are expected to do so.

    *       Connecting billers and payers electronically could save as much as
    $19-46 billion each year in check processing costs.

    *       By 2001, $1.1 billion of insurance premiums will be generated via
    the Internet.

    *       Nearly 5 million people actively trade stocks online and pay $8-$30
    per trade, versus an average of $80 paid to traditional brokers.  In 1997,
    $614 million in broker commissions were generated online, representing 29
    percent of all commissions paid to discount brokers last year.
            RETAIL SALES OF TANGIBLE GOODS

    Increasing demands on leisure time and the improvement of overnight and
    second-day delivery services that spurred the growth of catalog shopping in
    the 1980s and 1990s are now leading people to shop over the Internet.

    *       By the end of 1997, 10 million people in the U.S. and Canada had
    purchased something on the Web, up from 7.4 million six months earlier.

    *       1-800-FLOWERS sold $30 million online in 1997.  While this
    represents only 10 percent of the company's total revenues, its profit
    contribution to the overall business is nearly that of its store-based
    business which is twice as large.

    *       Amazon.com offers a selection of 2 million book titles to Internet
    customers (traditional bookstores have about 150,000 titles).   In 1996,
    the company recorded sales of less than $16 million.  In 1997, its sales
    reached $148 million.

    *       Sixteen percent of all new car and truck buyers used the Internet
    as part of their shopping process in 1997, up from 10 percent in 1996.  By
    2000, the Internet will likely be used in at least 21 percent of all new

    car and truck purchases.

    *       Auto-by-Tel, a Web-based automotive marketplace, processed an
    average of about 29,000 purchase requests for autos each month in 1996.  At
    the end of 1997, the Web site was generating $500 million a month in auto
    sales ($6 billion annualized) and processing over 100,000 purchase requests
    each month.

    *       In order for the full potential of Internet retail sales to be
    realized, consumers must be more comfortable that credit card and personal
    information given online will be not be tampered with, stolen or misused.
    The U.S. government is encouraging the private sector to establish codes of
    conduct and self-regulation in order to empower consumers to have control
    of their own personal information.

            CHALLENGES AHEAD

    IT and electronic commerce can be expected to drive economic growth for
    many years to come.  To realize this potential, however, the private sector
    and governments face a number of challenges.

    *       The pace of technological development and the borderless
    environment created by the Internet drives a new paradigm for government
    and private sector responsibilities.

    *       Where possible, rules should result from private collection action,
    not government regulation.

    *       Governments must allow electronic commerce to grow up in an
    environment driven by markets, not burdened with extensive regulation,
    taxation or censorship.  Governments have a role to play in supporting the
    creation of a predictable legal framework for doing business on the
    Internet-a role that must be exercised in a non-bureaucratic manner.

    *       Greater competition in telecommunications and broadcast industries
    should be encouraged so that high-bandwidth services are brought to homes
    and offices around the world.

    *       Information technology has already begun to create demand for
    highly skilled workers. As electronic commerce becomes more widespread, it
    will drive further changes in the labor market.  Countries that have an
    insufficient supply of skilled workers will see high-skilled, high-paying
    jobs migrate to countries that can supply the needed talent.  The private
    sector and governments must work together to create new human resources
    policies that better prepare students and workers to meet the challenges of
    the emerging digital economy.
    ###