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Smart Borders Increasing Security Without Sacrificing Mobility

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Smart Borders Increasing Security Without Sacrificing Mobility Smart Borders Increasing security without sacrificing mobility Global Public Sector Thinking people. 2 Table of Contents Executive Summary 5 Introduction 6 Trends from Across the Globe 8 Emerging solutions for Smart Borders 10 1. Make a safer border by employing risk based decision-making 12 2. Improve standardization by normalizing data requirements and partnering across borders 14 3. Increase cost savings by consolidating government functions at the border 17 4. And innovate at the border by enabling the ecosystem to bring commercial and community solutions 19 Conclusion 22 Acknowledgements 23 How Deloitte can help governments realize Smart Borders 24 Endnotes 25 Smart Borders Increasing security without sacrificing mobility 3 4 Executive Summary In 2015, global commerce is projected This report describes how governments to be worth over $300 billion. The can apply the following principles to interlinked and international nature of transform the way they secure and this economy makes exponential growth manage their borders: quite lucrative, yet this economy also 1. Make a safer border by becomes increasingly susceptible to a employing risk based range of risks from organized crime and decision-making terrorist groups to emerging technology. Take 3D printing—the technology 2. Improve standardization by has been around for decades but normalizing data requirements now that it is commercially viable and and partnering across borders readily available, it presents a myriad of 3. Increase cost savings by unprecedented threats. With anyone consolidating government able to print any physical object for functions at the border which a blueprint exists, this technology has the potential to fundamentally 4. And innovate at the border by change the economies of scale for enabling the ecosystem to bring small, innovative enterprises and may commercial and community revolutionize the entire manufacturing solutions industry. Dynamic disruptions, such Smart Borders can help government as these, will force governments get back to basics, empowering public and industry to re-imagine policies servants, industry and the community and business practices related to the to work together to solve the most movement of goods and people to pressing economic and security remain competitive in this new global problems—from issues affecting local order. Governments, in particular, will communities to those that transcend have the opportunity to envision and national borders. realize Smart Borders—a border security and management paradigm that can By Sean Morris, David George, Alex create safer, more standard and cost Haseley, Nes Parker and Becca Sherman effective demarcations. For additional information, please contact us at [email protected] Smart Borders Increasing security without sacrificing mobility 5 Introduction Our borders have been transformed the world. An increased focus on the from a static line on a map to an physical security of goods and people ecosystem for shared decision making moving across borders in response to and real-time collaboration that 9/11 and an overall global emphasis on empower government and industry to counterterrorism has caused a systemic work together to create safer, more shift in the border security landscape. standard and cost effective perimeters. Almost seventy years ago, the global order faced similar shocks. In the Border security and management is wake of the Second World War, the a broad term encompassing a vast U.S. and UK, and soon after Canada, range of national security, economic, Australia and New Zealand became and socio-political functions. From an alliance of intelligence operations developing economies utilizing World by signing the Five Eyes agreement. Customs Organization (WCO) guidance This pact established an alliance of to build border security capabilities, to five English-speaking countries for nations with established, integrated the purpose of sharing intelligence, border security constructs, to integrated especially signals intelligence. This border security between nations who agreement is considered by some to be collectively work to increase protection the most exclusive information sharing beyond their own borders, migration club on the planet, but at the very and border management has been least serves as a powerful case study addressed in different ways around 6 for cohesive policymaking. These five developed economies The following developments set the utilizing collaborative border management thereby represent stage for emerging solutions with border a bright spot in this global order as their agreement continues security efforts in the Australia, Canada, to protect national interests of all members as it relates to New Zealand, United Kingdom, and the United States: national and border security. Australia has taken a recent conceptual The evolving international economic and security environment leap – double-hatting the National signals a need for increased intelligence cooperation. Director of Intelligence in the Australian Governments seeking to encourage the success of their Customs & Border Protection Service as citizens and businesses should consider new and innovative the agency’s Chief Information Officer to measures to mitigate the impact of two converging issues, drive an intelligence-led approach to border namely heightened security and the exponential increase in information management and analytics.vi the flow of populations and goods. New Zealand’s Ministry of Business, This report explores what those measures could look Innovation and Employment is looking to like through an examination of the efforts of the Five enhance existing immigration services with Eyes, namely: Australia, Canada, New Zealand, United a more customer-centric design and strong emphasis on online interactions. It’s also Kingdom, and the United States. These nations belong to aiming to establish trusted partnerships a strong alliance, but are also testing methods of meeting through for example universities.vii both national security needs and free trade. Through this examination, a balanced and efficient approach, a vision The United States and Canada recently for Smart Borders emerges—that vision includes safer, launched the Beyond the Border Economics more standardized, and cost-effective borders. Action Plan to make trade and travel easier. This agreement highlights a shared approach to addressing both internal and external threats.xvii The United Kingdom recently created three distinct but connected borders and immigration organizations within the Home Office to help improve clarity of accountability in delivering the department’s objectives. The three functions have clear roles and priorities around the visa system, border security and immigration enforcement, with the rest of the department being re-configured to support them in delivering their mission.viii Smart Borders Increasing security without sacrificing mobility 7 Trends from Across the Globe Consider the current state of the flow of goods and people in some of the largest economies in the developed world: Australia processed more In New Zealand, the than 31 million international total value of overseas air and sea passengers merchandise imported as between 2011 and 2012; a percentage of GDP was that number is expected to nearly 25 percent in 2008. reach 50 million by 2020. More than 86 percent of More than 210 million all U.S. merchandise trade passengers passed through by value with Canada and UK airports in 2010, with Mexico entered or exited 2 million air transport the country through surface movements. mode of transportation in 2012. The value of U.S.- NAFTA goods transported by truck alone was US $665 billion dollars. 8 As these nations’ economies grow and recover Plan—proposed by U.S. President Obama and from recent downturns, global trade will only Canadian Prime Minister Stephen Harper—calls for increase. Although the trade outlook is sluggish, the increased flow of trade and travel between Canada World Trade Organization does forecast an uptick and the US via increased investments (including of 5 percent in 2014. Unfortunately, even this cyber) in infrastructure and technology at 120 slow rate of movement between nations is being points of entry along the border. met with a global trend toward congestion at the While a long wait time may seem like a small border. Industry and individuals consistently suffer inconvenience in light of the very real threats of through long lines and delays at high-volume, over- the post-9/11 world, there is no question they burdened, and sometimes redundant checkpoints. have a very tangible effect on trade. As of 2005, The key issue plaguing immigration and customs delays in getting trucks carrying freight across the agencies is the resources needed to undertake the U.S.-Mexico border were estimated to cost the two critical security screenings required of both people economies $6 billion and more than 51,000 jobs. and goods as they traverse the border. As the An increase of just 15 minutes was expected to cost volume and speed of trade transactions increase, an additional $1 billion in productivity and 134,000 inadequate infrastructure and manpower are not jobs in the border region. It is now estimated that easily scalable to meet the growing needs, including the cost of congestion to the regional economy at increased trade, more complex supply chains and the U.S.-Mexico border in 2012 was $12 billion— the increasingly sophisticated criminal activity. For with a wait time
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