Digital Upgrading

The development of the internet generated an insatiable demand for instant information that led modern society to seek to understand more than just their immediate surroundings. With every generation’s evolvement comes a stronger dependency on innovation to be the leading driver behind this globalization.

Based on the subsequent information, it is not surprising that almost all business related information is disclosed on the internet. According to an article posted on Lawfuel.com, one of the largest law news sites on the Net, the SEC modified one of its previous mandates by eliminating its requirement for “foreign companies without SEC registered securities to submit paper disclosures.” At this time investors can directly find company disclosures on the internet.

I believe that the SEC’s amendment illustrates society’s growing dependency on information technology, specifically their need to access information instantaneously, and the government’s growing desire to accommodate. Their act is progressive in nature, as it promotes the elimination of paper transactions and utilizes information technology to facilitate information exchange; and in my opinion, this will help to satisfy our society’s need for immediate information. The increased ease of accessing information will promote engagement in foreign transactions and will better equip US investors participating in foreign markets. Ultimately, the SEC’s amendment illustrates the government’s innovative advances in information technology and their eagerness to modernize the business world.

Although the government is attempting to modernize by presenting the public with more instantaneous access to information, some opponents feel it is beyond their capabilities. According to “Government Data and the Invisible Hand,” a scholarly article written in the Yale Journal of Law and Technology, the government should continue to grant open access to government information and modify their infrastructure; however, they should allow private companies to take over the communication of this information.

It is easy to agree with the authors’ standpoint on this issue. They are correct in stating that the government is unable to keep up with the “evolving power of the internet,” and that private companies are better equipped to deliver information. They propose that the government should redirect their focus to just providing reusable information and maintaining current infrastructure. Accordingly, this should lead to the evolution of third parties, who will step in and utilize the latest IT tools to convey information to the public. The taxpayer will cover the IT cost in cases where third parties fail to evolve. However, the authors anticipate former instances to surpass the latter.

My concern is that the author is placing too much emphasis on the emergence of a third party. It is not guaranteed that a third party will evolve to communicate information to the public. Alternatively, complete dependency on third party providers could become costly or limiting to the public. If fees are charged to employ the websites that disclose the information, then access will be limited to those able and willing to pay. Furthermore, giving a third party the ability to access information before the general public could create bigger issues; the third part might be tempted to use the information to their advantage before publishing it. Although government websites tend to be outdated and lagging behind private company sites, it is comforting to know that they are accessible and accurate. Ultimately, the government should identify a median, such as contracting individuals to help modernize the existing infrastructures and identify the optimum way to present information.



Robinson, David, Yu, Harlan, Zeller, William P. and Felten, Edward W.,Government Data and the Invisible Hand. Yale Journal of Law & Technology, Vol. 11, 2008
Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1138083

"SEC Votes to Modernize Disclosure Requirements to Help U.S. Investors in Foreign Companies." Lawfuel 27 Aug 2008. 6 Sep 2008

http://www.lawfuel.com/show-release.asp?ID=19148