enabling policy frameworks for ict trade and development
TRANSCRIPT
Training on Trade in Information and Communication ServicesWorld Bank - COMESA - WTOGeneva, 23-27 April 2007Session 9: Challenges of Domestic Regulatory Reform
Dr. Susan TeltscherChief, ICT Policy and Analysis Unit
ICT and e-Business Branch, SITEUNCTAD
Enabling Policy Frameworks for ICT Trade and Development
This presentation
• National ICT strategy concept• Policy examples• Review and evaluation• UNCTAD assistance
National ICT Strategies: main objectives
• Raise awareness about the role of ICT for development
• Create an enabling environment for the adoption of ICT
• Build capacity & skills for the information economy
Basic elements of an ICT policy framework
1. ICT infrastructure, connectivity and access
2. Legal and regulatory framework3. ICT human resources and skills4. Business development5. ICT-related trade and investment
policies6. E-government7. Technological innovation (R&D)
2. Legal and regulatory framework
• Telecom regulation• Trade and investment regulation• E-commerce laws• Taxation
Regulating e-commerceInternet:
Actors:BusinessesConsumersPublic admin.Intermediaries
no borders - no locationdecentralised (no inherent control) ubiquity (too many rules)rapidity (urgency for quick dispute resolution)
ISP
RoutersWeb server
Consumer
CorporateUser
Dial-up
Leased lines
Backbone network
Internet Exchange Point
Regulating e-commerce
Privacy/ Data protection
Security/ authentication
Intellectual property
rights
Liability of ISPs
Content regulation
Internet governance
e-payments Consumer protection
Jurisdiction Applicable law e-contracting e-signatures
Dispute resolution
Spam Cybercrime Negotiability/ documents of
title
Legal solutions
• International legal instrumentsModel laws/ guidelines
UNCITRAL Model Laws on e-commerce and electronic signatures EU Directives on Electronic CommerceCouncil of Europe Convention on Cybercrime
Legal solutions
• International legal instrumentsContractual approaches
European model EDI AgreementCode of conduct – self regulation
UN/CEFACT ModelInternational convention
UNCITRAL Convention on e-contracting
Basic legal infrastructure
• Recognition of electronic messages• Electronic signatures• Online dispute resolution• Cybercrime
Basic elements of an ICT policy framework
1. ICT infrastructure, connectivity and access
2. Legal and regulatory framework3. ICT human resources and skills4. Business development5. ICT-related trade and investment
policies6. E-government7. Technological innovation (R&D)
5. ICT-related trade and investment policies
• Increase trade in ICT goods and services• Attract FDI• Promote ICT-related activities (e.g.
outsourcing/offshoring) • Develop the domestic IT industry
The Indian case: trade in ICT- enabled services has witnessed phenomenal growth
1.4 1.9 2.6 3.96.0
1.84.0
7.7
12.8
23.6
13-15
7.2
60 +
31.0
FY98 FY00 FY02 FY04 FY06 FY07P FY10^
DOMESTIC MARKET* EXPORTS*
USD Billion
Source: NASSCOM ^NASSCOM McKinsey Study 2005
FY00-10 22.1% 31.2%21.1% 34.6%
28.9%FY00-06 31.0%
CAGR
10 YR TARGET
ACHIEVED* Includes IT Software and Services, ES and Products, as well as ITES-BPO
TOTALPERIOD
Trade and investment policies
• GATS commitments
• FDI restrictions (foreign ownership, screening procedures, operational)
• Investment incentives (stable, secure environment, tax breaks)
UNCTAD FDI study (2006)• FDI restrictions in services
(index-based)• Telecom highly restricted• GATS underestimates
degree of FDI openness• Positive correlation between
FDI inflows and degree of openness (but outliers)
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70En
viro
nmen
tal
Con
stru
ctio
n
Tour
ism
Hea
lth
Educ
atio
n
Dis
tribu
tion
Busi
ness
All s
ervi
ces
Fina
nce
Tran
spor
t
Com
mun
icat
ion
Elec
trici
ty
FDI restrictions by service sector, 2004
Source: UNCTAD (2006)
0.00
0.10
0.20
0.30
0.40
0.50
0.60N
. Afri
ca
Oth
er A
frica
Wes
t Asi
a
Sou
th A
sia
Sou
th-E
ast A
sia
Eas
t Asi
a
Sou
th A
mer
ica
Oth
er L
atin
Am
. & C
arib
.
Cen
tral a
nd E
aste
rn E
urop
e
Wor
ld
Source: UNCTAD (2006)
FDI restrictions by region, 2004
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Cze
ch R
ep. o
f
Boliv
ia
Uga
nda
Rom
ania
Arge
ntin
a
Para
guay
Jam
aica
Sene
gal
Gua
tem
ala
Hun
gary
Mor
occo
Mon
golia
Peru
Chi
le
Slov
enia
Pola
nd
Ecua
dor
Uru
guay
Trin
idad
& T
obag
o
El S
alva
dor
Tanz
ania
, UR
of
Turk
ey
GATS
Baseline (GDP w eights)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Col
ombi
a
Sout
h Af
rica
Dom
inic
an R
ep.
Cos
ta R
ica
Moz
ambi
que
Vene
zuel
a
Braz
il
Nig
eria
Egyp
t
Kore
a, R
ep. o
f
Gha
na
Sri L
anka
Mex
ico
Paki
stan
Mau
ritiu
s
Keny
a
Tuni
sia
Chi
na
Indi
a
Thai
land
Mal
aysi
a
Qat
ar
Indo
nesi
a
Philip
pine
s
Source: UNCTAD (2006)
FDI restrictions lower than GATS
Asia is ICT TNCs’ main target
In which of the following regions does your company currently invest or intend to invest (%)?
42.4
45.5
57.6
66.7
69.7
69.7
0 10 20 30 40 50 60 70 80
Africa
Latin America
Middle East
Eastern Europe
South-East Asia
Other dev. countries in Asia
Source: UNCTAD (2002)
Policies to attract ICT investors
Factors that your company considers in choosing a developing country as a potential location for investment
4.3
4.7
5.2
5.7
5.7
6.0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
Investment incentives
Education of workforce
Workforce IT competence
Cost of production
General policy environment
Access to markets
Source: UNCTAD (2002)
Basic elements of an ICT policy framework
1. ICT infrastructure, connectivity and access
2. Legal and regulatory framework3. ICT human resources and skills4. Business development5. ICT-related trade and investment
policies6. E-government7. Technological innovation (R&D)
WSIS target: all countries have a national ICT strategy by 2010
2006: how many developing countries have adopted an ICT strategy or master plan?
National ICT strategy
• 181 developing and transition countries and territories surveyed by UNCTAD
Source: UNCTAD (2006)
UNCTAD survey on national ICT master plans in developing countries
No information available
36 countries are designing an ICT plan (20%)
80 countries have adopted an ICT plan (44%)
The way ahead: ICT policy reviews
• National ICT plans exist in many developing countries
• Need to assess and evaluate policies
• ICT monitoring and measurement
• UNCTAD: ICT policy reviewframework for the information economy
ICT infrastructure & accessAccess to & use of ICTs by households and individualsUse of ICTs by businessesICT sector and trade in ICT goodsOther ICT indicators
ICT environment ICT policy framework
Objectives and priority areas & strategic approachICT infrastructure development Legal and regulatory framework ICT human resources/skills Business developmentICT-related trade & investment policiesE-governmentTechnological innovation (R&D)
Implementation &Institutional framework
Integration of ICT policies in national development plans /PRSPInstitutional setup for implementation of ICT planPolicy coordination Financial resourcesMonitoring and evaluation
Policy recommendations Tran
spar
ent a
nd c
ontin
uous
con
sulta
tion
proc
ess
with
all
stak
ehol
ders
Revised ICT master plan/policies
Assessment of existing ICT master plan
Indicators of achievement – identification of success factors, best practices, lessons learnt and challenges ahead
ICT uptake and use indicators
Source: UNCTAD (2006)
UNCTAD ICT policy review model framework
National ICT policies and indicators
• Quantitative measurement of ICT uptake and use is one of the three pillars in ICT policy review model framework
Role of indicators• To assess the impact of ICTs on economic
growth, trade, and development
• To collect evidence on ICT uptake and use at the national level
• To better target national ICT policies and create an enabling environment for e-business
• To benchmark your country’s information economy against those of your neighbors, and globally
• To take informed investment and business decisions
International level
ITUOECDUNCTADUNESCO Institute for Statistics(UN ICT Task Force - GAID)World Bank
Regional level
ECAECLACESCAPESCWA Eurostat
Current members
http://http://measuringmeasuring--ict.unctad.orgict.unctad.org
Role of indicators – global initiative
Conclusion
National ICT Strategies:
• Promote infrastructure, connectivity and access• Build human competence• Adequate legal and regulatory framework• Business sector policies• E-government• Technology and innovation• Carry out periodic ICT policy reviews – role of ICT
indicators
National ICT Policy ReviewsLegal aspects of e-commerce (advisoryservices, drafting of legislation, seminars, 1-week training course)
ICT measurement (advisory services, methodological manual, seminars, 1-weektraining course)
UNCTAD ICT Technical Assistance
Information Economy ReportThe Information Economy Report 2006: The Development Perspective
Provides unique data on the adoption of ICT by enterprises in developing countries. It also explores ICT policy options in a developing-country context and proposes a framework for national ICT policy reviews and for the design and assessment of pro-poor e-strategies.
WTO-WB-COMESA Training on Trade in Information and Communication Services Geneva, 23-27 April 2007
[email protected]/ecommerce
measuring-ict.unctad.org
Thank youThank you