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Session III Creating a n enabling environment

Session III Creating a n enabling environment. Marta Pérez Cusó, ICT and E-Business Branch UNCTAD. Questions. What are some of the key regulatory issues related to the information economy? Which ICT for Development isses require international attention?. The regulatory framework.

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Session III Creating a n enabling environment

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  1. Session IIICreating an enabling environment Marta Pérez Cusó, ICT and E-Business Branch UNCTAD

  2. Questions • What are some of the key regulatory issues related to the information economy? • Which ICT for Development isses require international attention?

  3. The regulatory framework • Regulating the Information Economy • Telecom regulation • Trade regulation • Investment regulation

  4. Telecommunications regulation

  5. Telecommunications regulation • Liberalisation of telecom industry and Internet service providers • Independent regulator • WTO: Basic Telecom Agreement • Challenge: service provision throughout the country (urban-rural) Goal: affordable, high-quality, universal service

  6. Investment policies • Investment incentives: • stable, secure environment • tax breaks

  7. Investment policies Source: UNCTAD (2002) Chapter 5 The IT Industry, e-Business and Development, E-Commerce and Development Report

  8. Investment policies: attracting ICT investors Source: UNCTAD (2002) Chapter 5 The IT Industry, e-Business and Development, E-Commerce and Development Report

  9. Trade regulation • ICT Goods • ICT Services • Digitized products

  10. Trade regulation - goods Import duties on IT products (computers, telecom equipment, semiconductors, components) lower import tariffs to spur development of domestic information economy • ITA Agreement • Singapore 1996: 29 WTO members. • Members represent 94% of world trade in IT products • Tariff-cutting mechanism – all tariffs to zero • Product coverage not complete–ITA II politically contentious

  11. Trade regulation - services • Computer-related services are the most dynamic • « Rising stars » are among the developed countries • Developing countries are gaining world market share (especially in telecommunication services, financial services and royalty services)

  12. Business process outsourcing Company India, Philippines, Brazil, China, Romania, Russia, Viet Nam • BPO areas: administration, finance, human resources, distribution logistics, manufacturing services, sales, marketing, customer care • Back-office functions (non-core activities), large-scale data processing, call centers • High-speed data communication links are key • Developing countries offer: lower wages, English-speaking workforce, qualified staff, modern ICT, around-the-clock service Company US, UK

  13. Outsourcing volumes

  14. Trade regulation – classification of digitized products • Books, music, film, software, video games Goods or services? = Implications: different rules apply GATT (goods) GATS (services) Slow progress, tendency towards services

  15. ICT issues related to WTO negotiations • Work programme on electronic commerce • Customs moratorium • Classification of digitized products (GATS, GATT) • Trade in ICT goods and services and electronically delivered services (e-services) (GATT, GATS, Information Technology Agreement) • Telecom services (Basic Telecom Agreement)

  16. Further resources • UNCTAD (2001) E-Commerce & Development ReportChapter 6: Overview of Selected Legal & Regulatory Issues on E-Commercewww.unctad.org/ecommerce • UNCTAD TrainForTrade Course on Legal aspects of e-commerce • www.uncitral.org • Mainly for jurist/lawyers. Available in English, soon French too. East Africa Community (Nairobi, Kenya December 2006) • Mauritius (Distance learning, March-April 2006) • Duration: 30 hours

  17. Issues on the International Agenda • International support • World Summit on the Information Society

  18. Digital divide Digital Divide Source: UNCTAD (2006) based on ITU data

  19. Support from International organisations Standards Regulation Policy ILO UNESCO WIPO ISO UNECE WCO UNCITRAL WTO UNCTAD ITU World Bank ITC UNCTAD Applications Infrastructure

  20. UNCTAD’s mandate on ICT • Enhance developing countries’ capacity to adopt & use ICT for economic growth • Increase SMEs’ participation in global trade by exploiting ICT

  21. International momentum on ICT WSIS: “Our challenge is to harness the potential of information and communication technology to promote the development goals of the Millennium Declaration” Declaration of Principles (WSIS, 2003) Principles:Adoption and use of ICT E-strategies Capacity building E-literacy Legal and regulatory framework Regional cooperation

  22. Internet Governance Financing ICT WSIS process Multistakeholder Broad information society, importance of economic aspects • First Phase (Geneva 2003)- Geneva Plan of Action • Second Phase: Tunis 2005 – Implementation PoA • Follow-up & implementation

  23. Financial Mechanisms • Report of the Task Force (provided analytical base for discussion) • Voluntary Digital Solidarity Fund (DSF) • Analysis of existing financial instruments • Recommendations for improvements

  24. Internet Governance • Working Group on Internet Governance (WGIG) Final Report for WSIS Tunis • Creation of Internet Governance Forum (IGF) – multistakeholder • First IGF meeting: Athens, November 2006 • Brazil 2007 • India 2008 • Egypt 2009

  25. WSIS implementation and follow-up • Follow-up: Commission on Science & Technology for Development (CSTD) • Support implementation: Action line implementation • UN system-wide coordination: Global Alliance on ICT (GAI) • Internet Governance Forum Multistakeholder follow-up

  26. UNCTAD’s contribution to WSIS Economic aspects of the information society • Geneva WSIS 2003 a) Monitoring the Information Society b) National ICT Strategies • Preparatory process Prepcoms & Thematic meetings: a) Economic & Social implications of ICT Guatemala, Jan’05 b) Measuring ICT for Development Geneva, Feb’05 • Tunis WSIS 2005 • Follow-up & Implementation

  27. UNCTAD’s contribution to WSIS implementation and follow-up: • Secretariat of CSTD • Coordinates implementation of WSIS Action Line C7 « e-Business » • Jointly with ILO, ITC • Close cooperation with all stakeholders • Next meeting: 24 May 2007 Geneva Room XXIII

  28. Conclusions • Importance of creating an enabling environment – regulation, investment, trade, telecommunications • Certain issues require international attention and harmonisation • Multiple international agencies supporting ICT for Development • UNCTAD deals with economic aspects

  29. Any comments or questions? marta.perez.cuso@unctad.org

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