Globalization and Trade: International perspectives on etrade

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Globalization and Trade International
perspectives on e-trade Experience from the
UNECE region using international standards and
tools for international business ?ario
APOSTOLOV, Regional Adviser, UNECE
mario.apostolov_at_unece.org
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In this presentation

• Globalization and its challenges
• UNECE and e-business standards
• success story in Eastern Europe

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Globalization and its challenges

• Globalization the removal of barriers to free
  trade and the closer integration of national
  economies can be a force for good that has the
  potential to enrich everyone in the world,
  particularly the poor, but the way it has been
  managed (especially the international trade
  agreements) needs to be rethought. Joseph
  Stiglitz
• Globalization has been misgoverned. John K.
  Galbraith

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UNECE

• UNECE is setting standards (incl. for e-business)
• e.g. UN/EDIFACT the only global EDI standard
• Disparity of economic development in UNECEs
  region
• E-business helps address development priorities
• Reduce poverty and provide opportunities
• Accelerate economic growth
• Decrease social stratification
• Attract foreign investment
• Build a service economy
• Help regional integration

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e-business and international cooperation

• e-business has definite advantages, but it may
  not take off, if it is left to purely market
  forces.
• Same is true about the use of international
  standards for e-business.
• A driving force for implementation is needed
  States, international organizations and the
  business community should work together.
• Example - electronic invoicing Everyone knows it
  is useful, but no one wants to pay to develop a
  system for all.
• Kareltek (Finish company) developed and sold
  e-invoices for 6 months in 2005 1.5m
  investment gt 50m return from saving costs
• Finland (5m population) as a whole gt 4b
  savings from e-invoicing
• EU (445m population) gt potentially can save
  36b.
• electronic invoicing for all ICT platforms will
  ensure inclusiveness of the benefits of ICT.
• UNECE supports international standards, e.g. for
  e-invoicing with the support of public (ICC,
  IATA, Governments) and private (Microsoft, SAP)
  sectors.

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POTENTIAL IMPACT IN FINLAND
Rough idea of e-Invoices used in each sector
Source Kari Korpela variation /- 10
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Integrated Management of International Trade
Information Flows
Advance filing of trade information
Harmonized (electronic) trade
documents, e.g.UNeDocs
Single Window
Advance exchange of information across borders

• Results
• more efficient trade less bureaucracy (the
  goal of trade facilitation) -gt
• lower cost
• more security through better supply chain
  management inside and
• among countries gt better risk analysis
• integration with Europe e.g. EUs Single
  Administrative Document
• (SAD) based on the UN Layout Key in use in SEE,
  TRACECA

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Single Window (one of the models single
authority)
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Potential first step gather all documents and
required procedures in one place the German
experience Formular Server www.zoll.de
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Need to build electronic platforms

• Community networks in ASEAN Singapore -
  TradeNet, Malaysia DagangNet Korea KTNET,
  Hong Kong DTTN, Tunisia TradeNet, etc.
• Single Windows in
• ports Hamburg, DE (Dakosy), Felixtowe, UK
• airports Schiphol, NL
• based on Customs Sweden, Senegal.

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Community network for e-business and a Single
Window DTTN, Kong Kong, China
Sellers
Carriers / Portals (Inttra, GTNexus)
Buyers
Freight Forwarders
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Data harmonization
 
Business Process Analysis
Data Element Questionnaire
___UN/TDED___ WCO Data Model
Standard Data Set
User assessment
Data harmonization
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Implementation

• Implementation carries technology and market
  risks.
• Paperless trade projects require the integration
  of
• cross-sector business requirements and
• different e-business technologies, e.g.
  UN/EDIFACT, UNeDocs, business modeling,
  constantly evolving technologies.
• Project management requires user orientation
  (concrete needs of the national economy) high
  level of ICT expertise good understanding of
  e-business standards partners with relevant
  project and technology expertise. Accept and deal
  with setbacks.
• Further development UN/CEFACT Working Group
  Forum, one of the next meetings will be in Egypt.
  
• Need to build trust between public and private
  entities (gaps in positions and interests of
  stakeholders persist).

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A Success Story Estonia

• Low starting point weak, centrally planned
• Very fast expansion of ICTs (24 of Estonian
  exports now ICT products and appliances)
• Dedicated young, dynamic, technically educated
  politicians
• Neighbours helped Finland saw Estonia as an
  extension of its ICT market Sweden oversees the
  banking sector
• Predisposition to ICT communications in a country
  where most people live separately in houses and
  farms (like all Nordics)
• Now slowdown (?) or others are catching up

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E-Government Index

• Country e-Government Rank
• Singapore 5, 43 1
• Finland 5, 40 2
• Iceland 5, 35 3
• Sweden 5, 10 4
• Estonia 4, 95 5
• Canada 4, 93 6
• Hong Kong SAR 4, 90 7
• Taiwan 4, 90 8
• Denmark 4, 88 9
• United States 4, 88 10
• United Kingtom 4, 83 11
• Norway 4, 70 12
• Netherlands 4, 65 13
• Austria 4, 63 14
• Australia 4, 58 15
• Brazil 4, 58 16
• Ireland 4, 58 17
• Korea 4, 38 18

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Active position of Government to involve the
broad public

• Public projects to enhance access for schools,
  local government, libraries
• Privatization and liberalization of telecoms
• Public Private Partnerships Look_at_world
  project - private initiative to bring people
  online
• Common use of authentication services Joint
  PKI development Estonian ID-card can and is used
  as authentication tool for e-services and digital
  signature
• predisposition of the population

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Some conclusions

• Globalization is potentially positive, but needs
  better management well-designed rules
• Important to position e-trade in a broader
  context of economic development, socio-economic
  culture in the country, and engineering growth
• The immediate international environment also
  plays a role (in terms of partnerships)
  consequently, look for the right partnerships
  from a distance too

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Thank you !

• Mario Apostolov
• Regional Adviser, UNECE Trade
• tel. [phone], fax [phone],
  e-mail mario.apostolov_at_unece.org