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Identity in a Digital WorldA new chapter in the social contractSeptember 2018Insight ReportWorld Economic Forum91-93 route de la CapiteCH-1223 Cologny/GenevaSwitzerlandTel.: +41 (0)22 869 1212Fax: +41 (0)22 786 2744Email: contactweforumweforum 2018 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system.Our identity is precious; any digital identity program must be based on enabling meaningful trust, control and accountability. Yet even agreeing these principles are proving hard - implementing them will be even more so because of a confluence of political, economic, technological, cultural, legal and social factors.Amanda Long, Director-General, Consumers InternationalEach individual is unique. There are many factors that define us and our health, ranging from our genes and the way we manage our own health, to the environment and social context in which we each live. It is vital to create a secure information infrastructure where our Digital Identity can enable research to find new cures and optimized care pathways, as well access to quality care.Jeroen Tas, Chief Innovation and Strategy Officer, Royal PhilipsIf designed well, digital identities can foster inclusion in almost all aspects of lives in transformational ways. For small holder farmers, they hold the potential to help overcome the pervasive issues of social, economic and geographic isolation, and fragmentation which are at the root of poverty. And do so at an unprecedented scale.Ishmael Sunga, Chief Executive Officer, South African Confederation of Agricultural Unions (SACAU)We must finally learn that there are no technological solutions to complex socio-economic problems. We should pause and understand the reasons why identity is a barrier to so much, and remove unnecessary barriers instead of resorting to complex identity systems. We also need to safeguard against political and financial wills that build identity systems for efficiency and targeting, instead of the well-being of individuals.Gus Hosein, Executive Director, Privacy InternationalWe want everyone to thrive in the digital world - no one should be left behind. That means educating everyone on how to keep themselves and their data safe online, which is something that we at Barclays are very passionate about. But it also means ensuring universal access to a safe, secure and easy to use digital identity, so that everyone can confidently unlock the benefits of the digital economy.Jes Staley, Barclays Group Chief Executive Officer, BarclaysDigital identity is a powerful force for both positive and negative human experience. To create a digital identity system that is positive and sustainable for the long term we must develop user-centered solutions that enhance user safety, control and benefit.Mitchell Baker, Chairwoman of the Board, Mozilla Foundation and Mozilla CorporationWe are on the threshold of a new model of digital identity that expands beyond individuals to organizations, things, devices and places. It will provide the foundation by which our digital selves will interact with online systems, control our connected devices, leverage the learnings of applied intelligence and protect the earths resources. Getting this right is critical to our future growth, responsibly harnessing technology innovation and enabling a better, more responsible digital life.Paul Daugherty, Chief Technology and Innovation Officer, Accenture3Identity in a Digital WorldForewordExecutive summaryHow to use this publicationChapter 1: The case for good digital identityIdentity shaping social contractsDigital Identities in our daily livesGrowing complexity, and responsibilityDivergent futuresFive elements of good identityIdentity systems today: Three archetypesChapter 2: What could good look like?Doing digital identity better1. Fit for purpose2. Inclusive3. Useful4. Offers choice5. SecureChapter 3: Looking ahead: trends, opportunities, challenges What happens next?TrendsChallengesOpportunitiesChapter 4: Priorities for public-private cooperation Appendix I: Design considerations for practitionersAcknowledgementsAdditional readingEndnotesContents4578991011111217181920212223242525252627293335374 Identity in a Digital WorldForewordAs more people, devices and associated personal data get online, there is growing focus on a foundational element of this new digital environment our identities. The ability to prove we are who we say we are will increasingly determine our opportunities to establish trust with each other and to carry out meaningful interactions in a digital economy. All over the world, a growing number of organizations from the public and private sectors are advancing systems that establish and verify digital identities for people, devices and other entities. This community is expanding in scope, growing beyond traditional identity practitioners to include a broader set of actors exploring the promises and perils of digital identities from domains such as healthcare, financial services, humanitarian responses and more.Yet we are still learning what “identity in a digital world” means. We are also still evolving policies and practices on how best to collect, process or use identity-related data in ways that empower individuals without infringing on their freedoms or causing them harm. There is significant room to improve how identity data is handled online, and how much control individuals have in the process. At the World Economic Forums Annual Meeting 2018 in Davos, a diverse group of public and private stakeholders committed to shared cooperation on advancing good, user-centric digital identities. Since then, a broader group of stakeholders has joined this conversation: experts, policy-makers, business executives, practitioners, rights advocates, humanitarian organizations and civil society. This publication reflects their collective insights, synthesized and translated into a format useful for decision-makers and practitioners. It takes stock of where we are today and identifies gaps in coordination across sectors and stakeholders. It outlines what weve learnt to date on what user-centricity means and how to uphold it in practice. It attempts to offer a shared working agenda for leaders: an initial list of immediate-term priority actions that demand cooperation. It reflects, in short, the first stage in collective learning and the creation of shared goals and paths. We urgently need deeper cooperation to shape user-centric identities; otherwise, we risk aggravating or creating digital divides, as well as failing to provide citizens and consumers with the opportunities that the Fourth Industrial Revolution presents. We hope this publication serves as a reference point to advance such cooperation.Derek OHalloran, Head Future of Digital Economy and Society, Member of the Executive Committee, World Economic Forum5Identity in a Digital WorldExecutive summaryOur identity is, literally, who we are, and as the digital technologies of the Fourth Industrial Revolution advance, our identity is increasingly digital. This digital identity determines what products, services and information we can access or, conversely, what is closed off to us.As digital services explode, and billions of elements in our everyday lives become connected to the internet, individuals are losing control of how they are represented digitally in their interactions with institutions. Others lack any digital identity at all, essentially excluding them from digital life.The result is a challenge to the social contracts that govern the relationships between individuals and institutions in a digital world.If we fail to act now, we could face a future in which digital identity widens the divide between the digital haves and have-nots, or a future where nearly all individuals lack choice, trust and rights in the online world.If we act wisely today, digital identities can help transform the future for billions of individuals, all over the world, enabling them to access new economic, political and social opportunities, while enjoying digital safety, privacy and other human rights.This report explores some ideas for how to achieve that better future, starting with a transformation that puts value on the individual at the centre.The need for shared understanding and coordinated actionDigital identities have evolved. They are no longer simple and isolated pieces of information about individuals, but complex webs, crossing the internet, of their personal data, digital history and the inferences that algorithms can draw from this. Our digital identities are increasingly embedded in everything we do in our daily lives.Verifiable digital identities create value for businesses, governments and individuals alike. Yet there is a lack of shared principles, standards and coordination between various stakeholder efforts in this rapidly evolving landscape.The five elements of user valueAt the World Economic Forums Annual Meeting in Davos 2018, a community of stakeholders from government, business and civil society made a commitment to advance towards a “good” future for digital identities. Since then, a broader group has joined the conversation and identified an initial set of five elements that a good identity must satisfy. All five are equally important, and tensions exist between some: for instance, features to enhance security for individuals and their identities may reduce their convenience. User-centric digital identities that deliver real value to individuals and therefore drive adoption must succeed in all aspects.1. Fit for purpose. Good digital identities offer a reliable way for individuals to build trust in who they claim to be, to exercise their rights and freedoms, and/or demonstrate their eligibility to access services.2. Inclusive. Inclusive identity enable anyone who needs it to establish and use a digital identity, free from the risk of discrimination based on their identity-related data, and without facing authentication processes that exclude them. 3. Useful. Useful digital identities offer access to a wide range of useful services and interactions and are easy to establish and use. 4. Offers choice. Individuals have choice when they can see how systems use their data and are able to choose what data they share for which interaction, with whom and for how long.5. Secure. Security includes protecting individuals, organizations, devices and infrastructure from identity theft, unauthorized data sharing and human rights violations.Today, there are three main archetypes of identity systems in the world. In the most traditional and commonly seen “centralized” archetype, institutions governments or enterprises establish and manage identities and related data in their own systems while in a second “federated” archetype, this role is shared among multiple institutions. Systems that follow the newest “decentralized” archetype, mostly still in the pilot stage, seek to give individuals greater control to manage their own identity data.6 Identity in a Digital WorldPriorities for collaborationGovernment, private-sector and civil society communities from the World Economic Forum network have identified six priority areas for collaboration to help shape digital identities of the future: Moving the emphasis beyond identity for all to identities that deliver user value Creating metrics and accountability for good identity Building new governance models for digital identity ecosystems Promoting stewardship of good identity Encouraging partnerships around best practices and interoperability where appropriate Innovating with technologies and models and building a library of successful pilotsAs the International Organization for Public-Private Cooperation, the World Economic Forum offers a platform for such collaboration that advances the practice of “good” identities and maximizes value to individuals.7Identity in a Digital WorldHow to use this publicationChapter 1 explains the importance of digital identities: why they may determine whether digital technologies increase inequality or promote sustainable, shared prosperity. It also offers a brief overview of existing and emerging digital identity systems. Chapter 2 explores what a good identity system, which delivers the five key elements of value to individuals, could look like. It examines how to achieve these elements of value and considers their application through real-world examples. Chapter 3 examines the emerging trends, opportunities and challenges for designers, policy-makers and other stakeholders to consider as they advance towards good digital identities. Chapter 4 identifies and explores six priority areas for near- and medium-term collaboration among the World Economic Forums multistakeholder community.An appendix offers design considerations for practitioners setting out to build digital identity systems. Note: This publication is not a comprehensive representation of all of the World Economic Forum stakeholder gatherings and conversations about digital identity. It focuses on the digital needs of individual human beings. Many topics, such as pseudonymous and anonymous access systems, remain part of the ongoing dialogue, but are not covered in depth in this publication. Others, such as the representation of devices, legal entities and artificial intelligence (AI) are touched on here, but they will require a deeper exploration into how they relate to individuals thereby influencing personal identity as well as into their other unique challenges.8 Identity in a Digital WorldChapter 1: The case for good digital identity9Identity in a Digital WorldIdentity shaping social contractsNothing is as fundamental to human beings as identity. Our identity is, literally, who we are: a combination of personal history, innate and learnt beliefs and behaviours, and a bundle of cultural, family, national, team, gender or other identities. However we understand it, identity always matters. Our identity is important because it exists in relation to others. It exists in relation to the economic and social structures in which we live. How we are represented in economic, political and other societal systems and our degree of choice and control as to how we are represented in these systems sets the parameters for the opportunities and rights available to us in our daily lives. Throughout history, we see again and again hard-fought battles and revolutions where individuals demand recognition and rights. From “no taxation without representation” to the ending of apartheid, how individuals are represented in society has been the bedrock for reimagining and renegotiating the rights, freedoms and responsibilities of individuals and the organizations to which they relate. The earliest definitions of the
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