Regulation Spectrum: A Balancing Act Between Innovation and Stability

by Masatoshi Nishimura

Navigating the waters of international regulation and policy-making can be a challenging task, particularly when considering the longevity of the entities pushing for these changes. Often, regulation serves mainly to bolster the interests of long-established powers while inadvertently hindering innovation. This article explores the delicate balance between fostering growth and ensuring safety in the field of technology.

The Dichotomy in Discussion: Regulation and Value Creation

The common trend in regulation points towards a dichotomy between protecting existing interests and fostering new growth and competition, a perspective often evident in AI Safety topic over GPT4 and similar large language models. How to protect humanity from Terminator.

It's preferable for growth and competition to be the focus, especially from a long-term perspective, but protection often assumes dominance. Notably, institutions over 50 years old tend to lean more towards existing interests, a phenomenon that include organizations like UN, WHO, WTO, WEF.

Regulation: A Source of Stability

Certainly, regulation does bring about stability. Health regulations, for instance, can allow individuals to focus their attention on other aspects of life. Similarly, regulation can foster productivity in certain situations. The question is whether it's possible to strike the right balance—can  the phenemonen be reduced to unregulation during stagnant growth, as is the case in Japan, and increased regulation during prosperity like in the US?

In recent times, the Canadian Government's law demanding Facebook and Google to pay for display Canadian news on their platforms paints a picture of the struggle to regulate an increasingly digital world. However, the regulation appears amateurish, displaying more contempt for global corporations when the government cant capture the values than a desire to foster growth nor to protect the interest of the Canadian consumers.

I understand when the Canadian government mandates radio or Spotify to play some Canadian music to protect its culture and national hegemony. That's something only the government can promote. But they shouldn't interfere with the flow of economy so the government can decide which domestic news outlets will get paid.

The regulation seems to stifle new ideas and technologies—from crypto to AI, e-learning, nuclear energy, social media, and quantum technology.

The Ripple Effect of Failing to Capture Economic Flow

Countries that fail to capture and tax their economic flow may face setbacks down the line. A trade deficit can be a significant instance of this predicament, with cheap goods flooding the domestic market and value being lost to foreign entities. While the US still holds a significant share of the digital economy with giants such as YouTube, Netflix, and Google, other regions such as Europe and Japan face different challenges.

In Defense of Regulation: Communication and Feedback Loops

Despite the skepticism, regulation isn't inherently bad. It can offer protection against potential dangers, such as weapons, drugs, or uncontrolled use of social media. However, these regulations must involve open communication and feedback from all stakeholders. A red flag should go up whenever regulations are designed to protect the interests of corporations that have been established for over 30 years.

In conclusion, regulation will always be a part of our world, striking a balance between maintaining existing structures and fostering new growth. This equilibrium, however, requires continuous feedback, dialogue, and a readiness to embrace innovative change for the benefit of all.