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Joint Government-Private Sector Committee of Experts on Electronic Commerce THE DIGITAL DIVIDE

Public FTAA.ecom/inf/112 October 25, 2001 Original: Spanish Translation: FTAA Secretariat. Joint Government-Private Sector Committee of Experts on Electronic Commerce THE DIGITAL DIVIDE. PRESENTATION OF THE DELEGATION OF COLOMBIA Panama City, Panama, October 2001.

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Joint Government-Private Sector Committee of Experts on Electronic Commerce THE DIGITAL DIVIDE

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  1. Public FTAA.ecom/inf/112 October 25, 2001 Original: Spanish Translation: FTAA Secretariat Joint Government-Private Sector Committee of Experts on Electronic Commerce THE DIGITAL DIVIDE PRESENTATION OF THE DELEGATION OF COLOMBIA Panama City, Panama, October 2001

  2. Colombia viewed in a General Context Background Connectivity Agenda Strategy for the Promotion of the IT Industry Proposal of Colombia PRESENTATION DELEGATION OF COLOMBIA

  3. COLOMBIA VIEWED WITHIN A GENERAL CONTEXT

  4. The IT Industry in Latin America • Latin America is the fastest growing IT market and also the least penetrated. It is expected to surpass North American, European and Asian markets. • On average, compound growth rate is 18.2% in this market whereas for the rest of the globe, growth rates have remained near 10.9% year after year.

  5. Distribution of the IT Industry in Latin America Fuente : IDC Colombia

  6. Investment in IT Services in Colombia - 2000 (US$ M) Source: IDC Colombia

  7. Investment in IT Services in Colombia (US $M) : IDC Colombia

  8. Telecommunications Infrastructure - Colombia

  9. 2.5% % IT vs. GDP IT Growth 2.0% 1.5% 1.0% GDP Growth 0.5% 0.0% IT vs. GDP in Colombia 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 -10.0%

  10. 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2000 2001 2002 76% 86% 98% PC Market Penetration World Lat.Am. # PCs per 100 inhabitants

  11. Lat.Am. Av. World Av. Internet Index 90 80 Internet Use For Business 70 60 50 40 30 20 10 Internet Users in Education E-Commerce Expenditure Internet Users in The Home Source: 2000 IDC/World Iimes Information Society Index (ISI)

  12. 12% 11% 10% 9% 8% 7% 6% 5% Lat.Am. 4% 3% 2% 1% 0% 2000 2001 2002 44% 51% 58% Internet Penetration World # Users per 100 inhabitants

  13. Electronic Commerce Colombia U$ 1000 M U$ M Fuente: IDC Colombia, 2001

  14. BACKGROUND

  15. The IT Industry in Colombia • In 1994, the Colombian government came up with the idea of fostering the development of IT with the support of international institutions, such as Protrade and GTZ of Germany. • In 1995, the government also started to promote the participation of Colombian enterprises in the Cebit Fair, held every year in Hannover, Germany.

  16. The IT Industry in Colombia • COINVERTIR, as part of its ongoing efforts, designed an electronics and software project and executed other countries’ studies. A business and technology mission to India was also carried out. • Activities in this sector have the support of various trade unions that make up the industry; FEDESOFT, ACIS, ACUC.

  17. Law 527 of 1999 Functional equivalent principle for concepts regarding text, signature, and original. Provisions that confer juridical validity, probative and mandatory value for all types of information in the form of data messages. Digital signature on the same footing as handwritten signature. Certification entities. Legislation

  18. Decree 1747 of 2000 Requirements to be met by certification entities that wish to carry out activities in Colombia Closed Entities – offer, free of charge, certification services that are only for the exchange of messages between the entity and the subscriber. Open Entities – offer certification services only when use is not limited to messages between the entity and the subscriber or when it is remunerated for these services. Legislation

  19. Strategic Export Plan • The Ministry of Foreign Trade formulated the Strategic Export Plan 1999-2009, which maps out the course to follow to strengthen Colombia’s productive sector and its orientation toward the international market.The plan is made up of five strategic objectives. • Strategic Objective 1 aims to increase and diversify the exportable supply of goods and services based on world demand. • Strategy 2 of this objective specifically aims to adapt, reorient, and promote the tools for boosting foreign trade. • Development of electronic commerce forms part of the Plan’s second strategy under Objective 1.

  20. CONNECTIVITY AGENDA

  21. Political Framework In 199l, in establishing the “Connectivity Agenda,” President Andrés Pastrana made the commitment to make the use of ICT widespread in order to support growth and increase productivity and competitiveness of market access for the production sector and reinforce the generation of employment.

  22. Vision of the Connectivity Agenda • Colombia, by the year 2010, expects to be a fully-fledged participant in the information society and be recognized as a: • Leader in the use of Information Technology in the education, production, and government sectors, for the purpose of optimizing its own activities and raise them to the levels and quality in keeping with the standards set by developed countries. • Country where all citizens have access to and actively use Information Technology for their own development. • Country with world class Information Technology, positioning it as one of the 5 main exporters of software and related services.

  23. State Policy aimed at bringing Colombia into the information society by bringing about a widespread increase in the use of Information Technologies and thereby augmenting the competitiveness of the productive sector and modernizing its public and government institutions. Mission of the Connectivity Agenda

  24. Specific Objectives of the Connectivity Agenda • Take advantage of ICT • Close the gap • Business sector participation • New State model

  25. Strategies of the Connectivity Agenda • Access to Infrastructure • Education and Training • Content • Online enterprises • Developing the IT sector • Government on-line

  26. 1. Access to Infrastructure 2. Education and Training 3. Content 4. SMEs 5. Electronic Commerce Agenda for Areas of Action – Digital Divide

  27. Telecommunications Law PCS - LMDS Compartel Computers for Education Military Units with Internet 500 Computer packages Resolution 307 – 2000 Flat Rates and Reduced Rates Value-Added Tax Exoneration– PC with 1 Processor 1. Access to Infrastructure

  28. 2. Education and Training Intelligent Program Bilingual Classrooms 3. Content SINIC – National Cultural Information System SIINTI – Information System of the National IT Infrastructure Education and Content

  29. Internet Project and Electronic Commerce Incentives for SME Technological Innovation– FomiPymes Training of 500 Expopymes (export-oriented SMEs) with the cooperation of the U.S. Department of Trade and Embassy 4. SMEs

  30. . 4. SMEs – General Criteria for Support • Programs, projects and activities in: • Strengthening of technological capacity • Information systems, information technology systems and economies online • Training • Technical Assistance • Development and promotion

  31. 5. Online Stage I Stage II Stage III I Online Services Procurement State information is a public good No. of Online Services Information Online Service Levels June 30, 2002 Dec. 31, 2000 Dec. 31, 2001 Presidential Directive 02/2000

  32. Result 1 of the First Stage: Presence of National Public Entities on the Internet 100% 99% 203 91% 100 % 87% 203 83% 200 83% 184 74% 176 80 % 162 169 168 63% 151 No. Entities 127 60 % 121 56% 56% 56% % Presence 114 114 114 40 % 81 20 % 40 0 % 0 Aug. Sept. Oct. Nov. Dec. Jan. Feb. April May June March 2000 2000 2000 2000 2000 2001 2001 2001 2001 2001 2001

  33. Government Online – Stage 2 Stage II I Stage Stage III Simplify Online interaction Services Between Citizens and the Procurement State No. of Online Services Online Information Service Levels June 30, Dec. 31, Dec. 31, 2002 2002 2000 2000 2001 2001 Presidential Directive 02/ 2000

  34. Government Online – Stage 2 This is an image. Translation next page.

  35. Search: Go: Medical Care If you would like an appointment… Pointers Today Cash $ 286,000 Enroll: Get online ISS information • Surfing • José Royo y Gómez Geological Museum • Foreign Collections • National Fossils • Minerals • Definition • Modalities • Procedures and Requirements • Form • Simulator • Statistics • Approved Credits • Renewals • Consult your account statement • Request Regional Information Regional: Antioquia Credit Information: Purpose of Credit: Under Graduate Amortization Term: Short Term Special Program: Andrés Bello National Career or Study Program: Maritime Engineering University: ACAD ARCO Consultation by Investigative Data Goals Scope of Data Base (Illegible) Main Page

  36. Government Online – Stage 3 Stage I Stage II Stage III Online Services Procurement No. of Online Efficiency Services Transparency Probity Online Information Niveles de Servicio June 30, 2002 Dec. 31, 2000 Dec. 31, 2001 Presidential Directive 02 of 2000 Third Stage : – • Legal Framework • Policy regulating agency • Definition of the Operation and Management Model

  37. Compartel 2001 Measuring use and advantage taken TI-DANE Education Portal Strategy for development of IT industry in Colombia 6. Activities Pending Execution

  38. STRATEGY FOR THE DEVELOPMENT OF IT INDUSTRY

  39. Strategy for the Development of IT Industry The government of Colombia has been working arduously to identify business opportunities and provide the tools needed for the appropriate development of the following areas: • Creation of adequate legislation • Identification of Colombia’s supply • Development of human capital • Establishment of strategic alliances • Marketing of the IT industry in strategic positions

  40. Concrete developments in the sector • Call to the sector • Investment proposals to multinational enterprises • Videoconference between entrepreneurs of India and Colombia • Andean Program for Technology Exportatiion and technological services CAF - Colciencias – Proexport • Silicon Valley - IBA • Development of agreements and associations that form part of IT industry • Bitkom • Nasscom

  41. Colombia IT Industry Objective • Commercialization on the Latin American market of products of large enterprises • Develop new software solutions • Locate new support centers to meet the region’s needs • Obtain technology transfers for our industry • Attract and have access to risk capital

  42. PROPOSAL OF COLOMBIA

  43. Measure use of ICT in our countries Investment in access to telecommunications infrastructure IT Training Centers to meet the needs of the Andean region Establishment of a monitoring group on policies defined in developed countries to support the development of IT in developing countries Application of cooperation mechanisms among countries, to launch projects aimed at decreasing the digital divide throughout the continent. Proposals

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