FTAA.ecom/inf/112 October 25, 2001 The Digital Divide

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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
PRESENTATION DELEGATION OF COLOMBIA

• Colombia viewed in a General Context
• Background
• Connectivity Agenda
• Strategy for the Promotion of the IT Industry
• Proposal of Colombia

3
COLOMBIA VIEWED WITHIN A GENERAL CONTEXT
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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
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
PC Market Penetration
World
Lat.Am.
PCs per 100 inhabitants
11
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
Internet Penetration
World
Users per 100 inhabitants
13
Electronic Commerce Colombia
U 1000 M
U M
Fuente IDC Colombia, 2001
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BACKGROUND
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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.

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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.

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Legislation

• 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.

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Legislation

• 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.

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Strategic Export Plan

• The Ministry of Foreign Trade formulated the
  Strategic Export Plan 1999-2009, which maps out
  the course to follow to strengthen Colombias
  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 Plans second strategy under Objective 1.

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CONNECTIVITY AGENDA
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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.
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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.

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Mission of the Connectivity Agenda

• 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.

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Specific Objectives of the Connectivity Agenda

• Take advantage of ICT
• Close the gap
• Business sector participation
• New State model

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Strategies of the Connectivity Agenda

• Access to Infrastructure
• Education and Training
• Content
• Online enterprises
• Developing the IT sector
• Government on-line

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Agenda for Areas of Action Digital Divide

• 1. Access to Infrastructure
• 2. Education and Training
• 3. Content
• 4. SMEs
• 5. Electronic Commerce

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1. Access to Infrastructure

• 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

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Education and Content

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

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4. SMEs

• 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

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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

• .

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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, 2001
Dec. 31, 2000
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.
Jan.
Dec.
Feb.
April
May
June
March
2000
2000
2000
2000
2001
2000
2001
2001
2001
2001
2001
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Government Online Stage 2
II
Stage
Stage
I
Stage
III
Simplify
Online
Services
interaction
Between Citizens and the
Procurement
State
No. of
Online
Services
Online Information
Service
Levels
June 30,
Dec. 31,
Dec. 31,
2002
2002
2001
2000
2001
2000
Presidential Directive 02/ 2000
34
Government Online Stage 2
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• Surfing
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Government Online Stage 3
Stage
II
Stage
I
Stage
III
Online
Services
Procurement
No. of
Online
Efficiency
Services
Transparency
Probity
Online Information
Niveles
de
Servicio
Dec. 31, 2001
Dec. 31, 2000
June 30, 2002
Presidential Directive 02 of 2000
Third Stage



Legal Framework

Policy regulating agency

Definition of the Operation and Management Model
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6. Activities Pending Execution

• Compartel 2001
• Measuring use and advantage taken TI-DANE
• Education Portal
• Strategy for development of IT industry in
  Colombia

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STRATEGY FOR THE DEVELOPMENT OF IT INDUSTRY
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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 Colombias supply
• Development of human capital
• Establishment of strategic alliances
• Marketing of the IT industry in strategic
  positions

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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

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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 regions
  needs
• Obtain technology transfers for our industry
• Attract and have access to risk capital

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PROPOSAL OF COLOMBIA
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Proposals

• 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.