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Community Party at Schloss Leopoldskron
Community Party at Schloss Leopoldskron
 
When? Tuesday, 18 December from 18.30 Where? Great Hall, Schloss Leopoldskron Feel free to bring your partner or a friend, while we provide the drinks and food in a festive atmosphere! Please RSVP by email to Jan Heinecke or phone at +43 (662) 83983-303 
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Stacy Baird: Europe’s Privacy Law - A Barrier to Artificial Intelligence or an Enabler?
Stacy Baird: Europe’s Privacy Law - A Barrier to Artificial Intelligence or an Enabler?
Stacy Baird 
This article is part of the series, the Salzburg Questions for Corporate Governance by the Salzburg Global Corporate Governance Forum Join in the discussion on LinkedIn Companies across the globe are dealing with the impact of Europe’s new General Data Protection Regulation (GDPR), as it has extraterritorial legal reach, revising privacy policies and practices (such as those annoying pop-ups about using cookies on many website, a notice required by GDPR). One of the topics of the work we were doing in Salzburg was whether boards needed to have expertise to address the use of AI in the company’s business processes and possibly, products and services. A question boards must consider is the implication of GDPR with the use of Artificial Intelligence (AI) or Machine Learning (ML). GDPR carries severe penalties, and significant privacy issues tend to carry high reputational cost. With the heightened concerns around AI, ML and privacy, there will be brighter lights shining on issues, when they arise. As your company moves into the use of these new technologies, are you prepared? Is your board? With GDPR in effect just over six months, it is too early to know the impact – good or bad. Do you see GDPR as an impediment or an enabler of AI and ML for your company? Are there legal frameworks you can imagine or are aware of that may be a better approach? Is your company weighing these issues? The more data processed by AI or ML system, the better and more accurate the technology is able to complete its tasks. When that data is personally identifying of individuals, questions come to the fore regarding privacy. There are also privacy concerns regarding the outputs of the AI or ML system that paints a portrait of an individual that may reveal personal attributes that the individual may prefer remain private. Sometimes, indeed, data may not be personally identifying, but could be compared with data that are, with the result of identifying an individual. The European Court of Justice has already held where this is “likely reasonably,” the former data moves into the class of data protected by the Data Protection Directive, the predecessor to the GDPR. In Europe, the GDPR, in part, addresses these issues directly, stating in Article 9: “Processing of personal data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, or trade union membership, and the processing of genetic data, biometric data for the purpose of uniquely identifying a natural person, data concerning health or data concerning a natural person’s sex life or sexual orientation shall be prohibited.” The GDPR requires consent of a data subject (i.e. the person whose data is being processed) be freely given, specific and informed, and unambiguous – and by a clear affirmative act, such as a writing or speaking. “Specific and informed” means that consent is granted only for that particular purpose for which the consent is being sought, and does not extend to other (e.g., new) purposes. Further, consent can be withdrawn at any time and the individual has a right to have the data deleted (i.e., the right to be forgotten).  An alternative to obtaining consent is to anonymize, de-identify or pseudonymize the data, which allows a data processor to use the data for purposes beyond which consent was obtained. However, the effectiveness of anonymization is only as good as the extent to which the anonymization is irreversible. As the Information Commissioner’s Office of the UK points out, it may not be possible to establish with absolute certainty a particular dataset is irreversible, especially when taken together with other data that may exist elsewhere. GDPR Article 5 sets out “principles relating to processing of personal data” including “lawfulness, fairness and transparency; purpose limitation; data minimization; accuracy; storage limitation; integrity and confidentiality; and accountability.” Some of the principles may be contrary to the use of AI and ML, which must first collect as much data as possible, and then analyze the data after collection (the “learning” process). This process makes complying with the purpose limitation and data minimization principles challenging. Article 22 protects data subjects from decisions based solely on “automated individual decision-making, including profiling” which produce legal effects or similarly significantly affects the data subject. The requirement can be overcome if the data subject gives explicit consent. As well, the restriction addresses decisions based solely on automated processing. Therefore, for decisions such as applications for credit, loans, health insurance, or in the case of job interviews, performance appraisals, school admissions, or court ordered incarceration, the automation can (and many would say should) be used to inform a human decision, not supplant it. The use of an AI and ML for “decision-making including profiling” must also be “explainable” to the data subject. But it is an open question as to the extent of the explainability – and to what degree the data subject must understand. Barriers to understanding an algorithm include the technical literacy of the data-subject individual and a mismatch between the mathematical optimization in high-dimensionality characteristic of machine learning (i.e., conditional probabilities generated by ML) and the demands of human-scale reasoning and styles of interpretation (i.e., human understanding of causality). There are competing views on whether the provisions of GDPR enable or are barriers to AI and ML. For example, does the GDPR right to withdraw consent weigh in the decision of a company to use the data? It may be a challenge to delete data in widely federated datasets, and doing so diminishes the “learning” based on the data. With each new use for data, the company is required to go back to get consent. Is that alone an impediment? With the growing range of devices collecting data (i.e., Internet of Things), will it be possible to get specific and informed consent as a practical matter? In contrast to those raising concerns, Jeff Bullwinkel at Microsoft has written that the GDPR framework strikes the right balance between protecting privacy and enabling the use of AI – provided the law is interpreted reasonably. What is your view? How is your company weighing these issues? Do you see the GDPR as an enabler? Blocker? Do you know enough about the GDPR to make informed decisions? Does the rest of your board know enough? Given the potential liabilities and risks to the company, do you think it should? Have an opinion?  We encourage readers to share your comments by joining in the discussion on LinkedIn Stacy Baird is a Salzburg Global Fellow and consulting director at the Singapore-based consulting firm TRPC. His expertise lies in law and advising businesses and governments on information technology, privacy, data protection, cloud computing, and intellectual property (IP) public policy matters. Stacy also serves as executive director of the U.S.-China Clean Energy Forum Intellectual Property Program, where he helps address bilateral technology transfer and IP issues in the context of clean energy research and commercialization. Previously, Stacy served as Senior Policy Advisor to U.S. Senator Maria Cantwell, including work on the U.S. Patriot Act, and advisor to U.S. Congressman Howard Berman on issues of first impression related to the then-nascent internet and the mapping of the human genome. Prior to law, Stacy worked as music recording engineer with clients including Madonna, Stevie Nicks, Elvis Costello, Brian Eno, and Francis Coppola. He held appointments as Visiting Scholar at the University of Southern California College of Letters, Arts and Sciences and Visiting Fellow at the University of Hong Kong Faculty of Law. Stacy has a J.D. from Pace University and a B.A. in radio and television communications from San Francisco State University.  The Salzburg Questions for Corporate Governance is an online discussion series introduced and led by Fellows of the Salzburg Global Corporate Governance Forum. The articles and comments represent opinions of the authors and commenters, and do not necessarily represent the views of their corporations or institutions, nor of Salzburg Global Seminar. Readers are welcome to address any questions about this series to Forum Director, Charles E. Ehrlich: cehrlich@salzburgglobal.org To receive a notification of when the next article is published, follow Salzburg Global Seminar on LinkedIn or sign up for email notifications here: www.salzburgglobal.org/go/corpgov/newsletter
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Salzburg Global Fellow Randal K Quarles to Chair Financial Stability Board
Randal K. Quarles at Session 563 - Financing the Global Economy: How Can Traditional and Non-Traditional Sources Be Integrated?
Salzburg Global Fellow Randal K Quarles to Chair Financial Stability Board
Oscar Tollast 
Salzburg Global Fellow and US Federal Reserve Governor Randal K. Quarles has been appointed the new chair of the Financial Stability Board (FSB). Quarles, 61, replaces Bank of England Governor Mark Carney and will serve a three-year term. Klaas Knot, president of De Nederlandsche Bank, has been appointed vice chair and will replace Quarles in 2021. The Financial Stability Board is an international body which monitors and makes recommendations about the global financial system. Quarles said, “Under [Mark Carney’s] leadership, the FSB has played a central coordinating role in building a resilient global financial system in the aftermath of the financial crisis. Ten years on, the FSB’s work remains just as relevant. “With its broad membership, it is uniquely placed to promote resilience and preserve an open and integrated global financial system in the future. I look forward to working with Klaas and all FSB members towards this goal.” Quarles became President Donald Trump’s first confirmed Fed nominee in October 2017. He serves as the Federal Reserve’s vice chairman for supervision. He previous worked in the Treasury Department under President George W. Bush between 2002 and 2006, serving first as assistant secretary for international affairs and then as undersecretary for domestic finance. Quarles has taken part in several programs at Salzburg Global. He first attended Schloss Leopoldskron in 2013 for Out of the Shadows: Regulation for the Non-Banking Financial Sector. The following year, he was a participant at The Future of Banking: Is There a Sustainable Business Model for Banks? He took part in his third Salzburg Global Finance Forum in 2015 when he attended The Future of Financial Intermediation: Banking, Securities Markets, or Something New? His most recent appearance at the Forum and Salzburg Global was in 2016 when he attended Financing the Global Economy: How Can Traditional and Non-Traditional Sources Be Integrated? The Salzburg Global Finance Forum tackles issues critical to the future of financial markets and global economic growth and stability. Created in 2011, its annual meeting facilitates candid in-depth analysis of strategic challenges and emerging risks by senior and rising leaders from financial services firms, supervisory and regulatory authorities, and professional service providers.
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Statement on Venetian Room Protest and the Cultural Heritage of Schloss Leopoldskron
The Venetian Room at Schloss Leopoldskron
Statement on Venetian Room Protest and the Cultural Heritage of Schloss Leopoldskron
Salzburg Global Seminar 
On Saturday, October 21, the final day of the 2018 Salzburg Global Young Cultural Innovators Forum, Salzburg Global Seminar staff was made aware that several protest posters had been put up in the Venetian Room of Schloss Leopoldskron. The posters were a protest against the Commedia dell’arte paintings on the walls of the Venetian Room, which the protestors viewed as depictions of blackface and racial prejudice. The Venetian Room was installed in Schloss Leopoldskron in 1930 by its previous owner, the theatre producer and director Max Reinhardt, after he acquired the wooden panels and paintings from Italy. The paintings depict scenes of the Commedia dell’arte (“Comedy of professional artists”), an influential form of traveling and improvisational theatre that originated in Italy in the 15th century. The paintings in the Venetian Room are generally regarded to be 18th-century copies of original paintings by Jean-Antoine Watteau. The characters in the Commedia dell’arte wear leather masks of varying types. These masks have been the hallmark of the Commedia dell’arte for hundreds of years, and have been the subject of continuous study and interpretation. The scenes from the Commedia dell’arte displayed in the Venetian Room depict characters wearing these masks, including the character Arlecchino (Harlequin), who wears a black mask that appears as if it is – or could be – a depiction of blackface.   The history of the Commedia dell’arte is long and complex, and we fully acknowledge that some artworks in the Venetian Room can be interpreted as blackface and therefore racially prejudiced, just as we recognize that other elements of Schloss Leopoldskron’s cultural heritage can raise difficult questions about historical and structural injustice. The protest during the recent Young Cultural Innovators Forum, therefore, raises important issues that we have a responsibility to examine and engage in a manner consistent with our institutional respect for equality, diversity, and inclusion. As a public interest institution committed to shaping a better world, Salzburg Global Seminar values our ability to offer a safe place where people from every background feel accepted and inspired.  Issues such as these that incite hurt and anger are particularly challenging to deal with thoughtfully.  But in the spirit of all that makes Salzburg Global and Schloss Leopoldskron welcoming to people from all over the world, we are eager to listen to concerns and ideas about how we can best adapt our approach to the conservation of – and conversations about – Schloss Leopoldskron, including the cycles of power, persecution, and renewal that are woven into its nearly 300-year-old history. As we do this, we are committed to engaging with our Fellows to understand their views and ideas, and as a starting point, we have requested that Fellows of our Young Cultural Innovators Forum share their perspectives on how we can adapt our practices to ensure our environment is as inclusive and transparent as possible. We have also undertaken a comprehensive review of the artwork and other elements of Schloss Leopoldskron’s cultural history and heritage. We hope this review will help us improve our own understanding of these sensitive issues, including ways we can continue to be thoughtful, transparent, and ethical stewards of the unique – and sometimes contested – history and cultural heritage of Schloss Leopoldskron. As we move forward, we welcome all ideas and thoughts from our community of Fellows, friends, and supporters, and urge you to get in touch with us at feedback@SalzburgGlobal.org should you like to engage in a conversation on these important questions.
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Innovators Convene in Salzburg to Improve Children’s Health and Well-Being
Photo from Robert Collins on Unsplash
Innovators Convene in Salzburg to Improve Children’s Health and Well-Being
Oscar Tollast 
Innovators from across the world – Australia, Austria, Brazil, Ecuador, India, the Netherlands, Nepal, South Africa, Rwanda, the UK, and the US – are being brought together by Salzburg Global Seminar and the Robert Wood Johnson Foundation to consider new ways to create healthy environments for children. Healthy Children, Healthy Weight is a five-day program which will take place at Schloss Leopoldskron, in Salzburg, Austria, bringing together experts from 15 countries. Starting on Monday, December 10, participants will prioritize opportunities for cross-border sharing and learning. They will build new insights and aggregate experiences from relevant sectors, areas of expertise, and regions. As the program continues, participants will break off into working groups and prepare recommendations for action. Participants will present their ideas on the final day of the program. This program falls under Salzburg Global’s multi-year series, Health and Health Care Innovation. This series aims to crystalize new approaches to global health and health care in the face of emerging challenges affecting us now and those which are set to continue through future generations. During next week’s program, participants will consider several key questions: What specific innovations, policies, and practices around the world have successfully developed new approaches and achieved better, more equitable outcomes for children's physical, social, and emotional health? What are the drivers of a strong sense of collective responsibility for the health and well-being of all children and their families, and of a commitment to equity with respect to economic, ethnic and/or migrant status? What points of intervention can most effectively disrupt the cycle of marginalization and poor health affecting some children and families? How can schools and educational policy-makers take action to improve child well-being in schools in resource-efficient ways, aligned with the growing emphasis in schools on social and emotional learning and 'whole child' policies? Which innovations in the use of social media and peer group initiatives best support child health and wellbeing and help establish a shared value for all children? By the end of the program, participants will have discovered new approaches and ideas for cross-border exchange. They will be encouraged to develop ongoing collaboration and find ways to build on their recommendations for supporting children’s health and well-being. John Lotherington, the program director at Salzburg Global Seminar responsible for health and health care programs, said, “Children are a core concern across many of our programs at Salzburg – the child in the city, the promotion of play, social and emotional learning, as well as health and wellbeing. It’s through cross-border learning, sparking new collaboration and mobilizing change at diverse key points in systems that we can help children, and particularly those who are at the moment marginalized, get the most out of life." The program Healthy Children, Healthy Weight s part of Salzburg Global's mutli-year series Health and Health Care Innovation. This year’s program is being held in partnership with the Robert Wood Johnson Foundation.
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SEL, Creating Systems Transformation, and the Politics of Reform
SEL, Creating Systems Transformation, and the Politics of Reform
Louise Hallman 
Education policies are often introduced but then thrown out on the changing of administrations, political or otherwise. To avoid this, social and emotional learning (SEL) needs to be adopted at a systems level. As experts from India, the US, New Zealand and Kenya explained on the first full day of Social and Emotional Learning: A Global Synthesis, integrating SEL at a systems level needs buy-in from all actors in the education system.  In schools, SEL should be encouraged not only for students, but also teachers and all other staff throughout the school. Outside of individual schools, buy-in is needed from the school districts and local education administration, such as having someone within the school district who is responsible and can advocate for SEL.  The buy-in of parents and students is also vital to ensuring the long-term support for and success of SEL. Oftentimes, parents complain that time spent on SEL programs is a “time-taker” from the more traditionally revered academic subjects, but evidence shows improved SEL can in fact be a “time-maker” as it enables students to better engage, pay attention, and process information, as well as work more collaboratively with their peers in a more learning-conducive environment thanks to reduced anti-social behavior, such as classroom disruption or bullying.  Unable to travel to Salzburg but undeterred from sharing his innovative policy, Delhi education minister Manish Sisodia filmed a video that morning in a city classroom to introduce the “Happiness Class”. This program is a new addition to schools’ curriculum in the Indian capital and aims to improve students’ mindfulness and confidence, which in turn will have an impact on their attainment in their other academic subjects.  SEL does not have to be delivered as a separate course such as the Happiness Class, but can instead be integrated into other subject areas. Languages, literature and geography can help develop cultural awareness and empathy; history teaches critical thinking; and team-building can be developed through PE and drama, for example.  Achieving system-wide transformation thus needs both a top-down and a bottom-up approach, but bottom-up need not start only with the parents, teachers and students. High-ranking local officials, such as school superintendents in the US, can be powerful advocates in spreading change outward and upward.  Watch: Manish Sisodia, Delhi Education Minister, addresses Salzburg Global Seminar from a classroom in India
The Politics of Reform Finland is often asked, “What’s your secret?” when it comes to education reform. Is it the teacher training? Is it the integrated curriculum? Is it the overarching education policy?  But as it was pointed out on the panel “SEL and the Politics of Education Reform,” there is no single secret ingredient. “We have many building blocks,” pointed out the Finnish panelist; combined, these blocks have built a successful education system, but these blocks are not easy to replicate wholesale in another country.  When testing and rolling out new programs, the following advice was given: “Start small, learn fast, and fail well.” Evidence collection, evaluation, and adaptation are all important prior to scaling up. But this approach was not deemed appropriate for all contexts, with another Fellow pointing out on Twitter: “Doesn’t work in an Indian context where the numbers are huge and contexts are diverse. Innovations in education have not traditionally scaled.” Introducing the oxymoron for the day, one panelist urged SEL implementation should be “compulsorily voluntary,” i.e. everyone should do it, but how SEL is delivered should be determined by the local context. Context matters. As another panelist added, “What works in one country might not work in another; what works in one school might not work in another; what works for one child might not work for another.” (After all, even McDonald’s, which pride itself on its global universal standards, adapts to local markets!) With so many different actors involved in delivering SEL education reform – from individual teachers and schools to policymakers and politicians, researchers and other advocates – efforts need to be made to “network autonomous actors” and guide their direction. A key ingredient to achieving this networking and thus implementing successful education reform is trust. Trust needs to be developed at all levels, from the teachers to the ministry.  The program Social and Emotional Learning: A Global Synthesis is part of Salzburg Global's mutli-year series Education for Tomorrow’s World. This year’s program is being held in partnership with ETS, Microsoft and Qatar Foundation International, who will also co-chair the program, together with additional partners, the British Council, the Calouste Gulbenkian Foundation and the Inter-American Development Bank.
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Addressing the Supply and Demand of SEL Skills
Participants of the Demand for SEL panel in Parker Hall
Addressing the Supply and Demand of SEL Skills
Louise Hallman 
The demand for social and emotional learning (SEL) skills is rising around the globe. But why? This was one of the first questions to be addressed at the program, Social and Emotional Learning: A Global Synthesis, which is being held by Salzburg Global Seminar in partnership with ETS, Microsoft and Qatar Foundation International, together with the British Council, the Calouste Gulbenkian Foundation and the Inter-American Development Bank. One source of demand for these skills is employers. The increasingly automated, globally linked and culturally diverse 21st century workplace will need human workers who are able to work collaboratively, think creatively and critically, solve complex problems, understand and appreciate other cultures, resolve conflicts, and be flexible and resilient in the face of constantly changing labor market demands. These are all skills that are developed through SEL. Recognizing that employers value such skills, students and educators are also demanding that SEL be better incorporated into existing curricula. Modern society-at-large also requires such skills. As Michael Nettles remarked in his opening speech, quoting Delhi education minister, Manish Sisodia, “If a person is going through our education system for 18 years of his life and is becoming an engineer or a civil servant, but is still throwing litter on the ground or engaging in corruption, then can we really say that the education system is working?” Post-conflict societies and those in the thrall of national crises are especially in need of citizens with greater SEL skills, particularly empathy and tolerance. Resilience is a key SEL skill for both children and adults experiencing displacement and forced migration, which explains why language education providers are increasingly interested in incorporating SEL into their curriculum. Supplying this demand is a challenge. Not only do students need to develop SEL skills, but also teachers, teacher trainers, parents, employers and existing workers. SEL thus needs to be taught in more locales than just the traditional classroom. The establishment of SEL courses may require additional resources and funding (though some panelists argued that it could be integrated into existing subjects, such as problem-solving in math and team-building in sports and drama), but many education ministries are cash-strapped. Collaboration – a key SEL skill – is needed between schools, ministries, business and parents to address the gaps. Answers to this demand question – and many others – will be sought over the course of the five-day program and addressed in co-written Salzburg Statement to be published in early 2019. The program Social and Emotional Learning: A Global Synthesis is part of Salzburg Global's mutli-year series Education for Tomorrow’s World. This year’s program is being held in partnership with ETS, Microsoft and Qatar Foundation International, who will also co-chair the program, together with additional partners, the British Council, the Calouste Gulbenkian Foundation and the Inter-American Development Bank.
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