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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 IIICreating an 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 • Regulating the Information Economy • Telecom regulation • Trade regulation • Investment regulation
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
Investment policies • Investment incentives: • stable, secure environment • tax breaks
Investment policies Source: UNCTAD (2002) Chapter 5 The IT Industry, e-Business and Development, E-Commerce and Development Report
Investment policies: attracting ICT investors Source: UNCTAD (2002) Chapter 5 The IT Industry, e-Business and Development, E-Commerce and Development Report
Trade regulation • ICT Goods • ICT Services • Digitized products
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
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)
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
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
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)
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
Issues on the International Agenda • International support • World Summit on the Information Society
Digital divide Digital Divide Source: UNCTAD (2006) based on ITU data
Support from International organisations Standards Regulation Policy ILO UNESCO WIPO ISO UNECE WCO UNCITRAL WTO UNCTAD ITU World Bank ITC UNCTAD Applications Infrastructure
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
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
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
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
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
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
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
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
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
Any comments or questions? marta.perez.cuso@unctad.org