New Tool Measures Economic Impact of Internet Shutdowns
The calculator is being called a ‘major step forward’ for those pushing back against such shutdowns.
July 10, 2023 – New measuring tool NetLoss launched by the Internet Society shows the impacts of internet shutdowns on economies including Iraq, Sudan and Pakistan, where government-mandated outages have cost millions of dollars in a matter of hours or days.
NetLoss, launched on June 28, calculated a four-hour shutdown in July in Iraq, implemented by the government to prevent cheating during high school exam season, resulted in an estimated loss of $1.6 million. In May, a shutdown in Pakistan cost more than $13 million over the span of four days, while a five-day internet outage in Sudan in April cost the economy more than $4 million and resulted in the loss of 560 jobs.
NetLoss is unique among other internet assessment tools as it also includes subsequent economic impacts on the unemployment rate, foreign direct investments, and the risk of future shutdowns, claimed the advocacy group Internet Society. It provides data on both ongoing and anticipated shutdowns, drawing from historical dataset of over 90 countries dating back to 2019.
“The calculator is a major step forward for the community of journalists, policymakers, technologists and other stakeholders who are pushing back against the damaging practice of Internet shutdowns,” said Andrew Sullivan, CEO of the Internet Society. “Its groundbreaking and fully transparent methodology will help show governments around the world that shutting down the Internet is never a solution.”
The tool relies on open-access databases, including the Internet Society Pulse’s Shutdown data, the World Bank’s economic indicators, the Armed Conflict Location and Event Data Project’s civil unrest data, Yale University’s election data, and other relevant socioeconomic factors. To stay up to date with real-time changes, the data will be updated quarterly.
According to the press release, internet shutdowns worldwide peaked in 2022 with governments increasingly blocking internet services due to concerns over civil unrest or cybersecurity threats. These disruptions are extremely damaging to the economy, read the document, as they impede online commercial activities and expose companies and the economy to financial and reputational risks.
