Weekly Snapshot - September 02, 2024
Roberto dos Reis Alvarez
I simplify complexity and connect dots to create value | Chief Curiosity Officer
Welcome to another edition of the Weekly Snapshot! Let’s dive in, and don’t forget to share it with anyone who might find this interesting!
?? AI regulation gains momentum
? Why does it matter?
California's economy is driven by technology. The state legislature just passed legislation to regulate AI. Bill SB-1047, supported by Elon Musk to the surprise of some, mandates companies to implement a controversial "kill switch.” This is pioneering legislation of this type and is also part of an emerging global issue. Expect more AI regulations worldwide.
? My thoughts on it
Balancing regulation and innovation is tough, especially in fast-moving tech areas. Governor Newsom will need to decide whether to sign the bill into law or not. For an economy driven by tech and digital, this is critical. Governments globally will soon face similar decisions. Speed matters and societies aren't prepared to deal with digital tech. From a policy perspective, it is essential to build a body of knowledge on the matter, distill lessons, and structure best practices.
? Read more here ??
?? A drone may be coming for you
? Why does it matter?
Drones are now key in warfare, as seen in Russia, Ukraine, and the Middle East. Their use is spreading globally, even to non-state actors. This signals the rise of asymmetric warfare, which is becoming the norm. It also highlights the challenges that come with new technologies and their democratization.
? My thoughts on it
Citizens dodging drones feels like sci-fi, but it's real and already happening. Today, most drones are piloted remotely (like the FPVs being used by the Ukrainian military), but autonomous AI-powered drones are inevitable. The risk isn't just military use—soon, anyone could have this power, including organized crime, terrorists, and rogue individuals. Are law enforcement agencies ready?
? Read more here ??
?? Capital shifts
? Why does it matter?
Capital is concentrated in advanced economies. However, shifts are happening. China’s foreign investment grew over 5,700% from 2002 to 2022, and the UAE’s grew 5,500%, while the outflow of EU’s FDI was reduced by 48%. For comparison: American FDI grew 176%, and the world’s grew 200%. These emerging capital hubs are increasingly connecting their financial markets. This is being coupled with the digitalization of currencies and the expansion of cross-border payment systems.
? My thoughts on it
Capital available for emerging nations is shifting hands. Countries like the UAE and China bring new rules for engagement. We'll see new financial tools emerging from these new global capital hubs and more connections between their markets. Understanding the dynamics and being capable of connecting with new sources of capital is key to seizing opportunities in a changing world, for businesses and emerging countries. This challenges the influence of advanced economies in the Global South, and tensions may arise.
? Read more here ??
?? To keep an eye on this week