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U.N. Reports Telecom, Information
Technology Key For New Economy
In the race to keep up in the global market place, countries are eager for the magic potion that will help them find the economic boom that the United States currently enjoys. Not surprisingly, most see telecommunications and information technology as the answer.
In a report presented to the United Nations on Tuesday, experts detailed the problems developing countries face when lagging behind in global information and communication technologies. Compiled by a group of independent experts led by former Costa Rican President Jose Maria Figueres, the report notes that less than 5 percent of the world is reaping the benefits of the mammoth technology sector.
"E-commerce, or business conducted over the Internet totaled $45 billion as recently as 1998 and an estimate in January 2000 projected it could explode to over $7 trillion as early as 2004" the reports stated.
The panel recommended the creation of a U.N. task force on Information and Communications Technology, which would combine efforts of countries, industries and international agencies to facilitate the growth of markets in developing countries. It also urged further investment from western nations and the need for all nations to be connected to the Internet by 2005. Such investment would come in the form of donations from governments, private sector organizations and voluntary groups to underwrite the costs for developing countries.
The panel's recommendations will be considered at United Nations Millennium Assembly, opening in September as well as the United Nations Economic and Social Council meetings in July.
Teaching An Old Economy New Tricks
But some developing countries are taking economic matters into their own hands. During presentations last Friday in Washington to India's Minister of Communications H.E. Ram Vilas Paswan, representatives from leading telecommunications companies outlined how regulatory changes have fostered a growth in the Indian market.
In the global marketplace, "money is like water: it finds its natural path and typically it's the path of least resistance," said Satish Tamboli of American International Group to the Indian delegation.
During the meetings, which were sponsored by the U.S.-India Business Council, panel members urged the delegation to continue to implement regulatory changes that will encourage information and telecommunications growth.
Countries like India are in a race to implement legal standards and infrastructure to support a booming global high tech industry but at the same time liberalize and reform current regulations and government agencies with the hope of encouraging foreign direct investment.
In China, which is one of the fastest growing markets, officials announced Monday that they will implement new regulations to curb fraud in online advertising. Cisco’s John Chambers, in a press conference last Friday, told reporters that the "Chinese government and business leaders really get it, and as they get it they will build out the infrastructure, which is going on very actively now,'' he said. "If you build up your infrastructure and your education system is very good, then the market could be huge.'' He added that the level of sales in China is approaching a half billion dollars annually and growing at about 90 percent per year, give or take five or 10 percent.
In her own presentation at the India briefing, Becky Burr, an associate administrator in the Office of International Affairs at the National Telecommunications and Information Administration described the kinds of policies that "governments should pursue to encourage growth." She advocated that the private sector should take the lead in the information technology and governments should avoid imposing unclear restrictions on e-commerce. Burr cautioned that when government involvement is necessary, it should be to support and enforce predictable, minimalist, consistent and simple regulatory environments.
India has undergone several recent policy changes intended to spark growth in foreign investment, including privatization of long distance telecommunications services.
Free Markets Leave Some Stranded
But free markets haven't been the new battle cry for all emerging nations. During the summit of G 15 nations Monday in Cairo, Egypt, leaders from African nations decried the push toward globalization, arguing that protectionism and trade barriers have limited the entrance of developing nation to foreign markets.
Emerging nations do face trade restrictions and barriers from G-8 nations in areas such as agriculture, yet "even if U.S. would totally eliminate agricultural barriers, it wouldn’t make much make difference to a nation like Zimbabwe, that is running its own farmers off their land," said Denise Froning, a trade analyst with the Heritage Foundation. "Without farmers, they have nothing to export."
Froning also noted that the lack of rule of law and unstable infrastructure is a major deterrent to foreign investors.
But despite frustrations with some trade barriers, G-15 leaders urged the western nations to invest and developing nations. During the summit closing, Egyptian President Hosni Mubarak told a press conference that developed nations must "extend opportunities through investment."
"This would help a lot to solve the labor problem. The labor problem is considered to be one of the major problems facing the developing nations," Mubark said.
But foreign investment, especially in the information and communication technology sector is a complicated issue. "There is no infrastructure and there is no political stability," said Maria Sophia Aguirre, an associate professor of economics and international finance at Catholic University. "E-commerce is definitely an issue, but for developing countries, the realities have not changes for the majority the country."
Aguirre noted that while a few areas in developing countries have benefited from more easily accessed information because of Internet connections, that has not significantly changed the structure of production.
Combating the "Real Threat" of Cyberterrorism
A White House adviser said Monday that U.S. critical infrastructures are at serious risk from cyberterrorist attacks.
"We are addressing a new kind of threat to national security and our economy, said National Coordinator for Security Infrastructure Protection and Counter Terrorism, Richard Clarke. "Everything we do as a nation moves though computer controlled networks . . . All our systems are vulnerable."
Cyber terrorism in the form of hacker attacks or denial-of-service attacks on America's "critical infrastructures" is quickly becoming a major national security concern, according to the panelists at a discussion on Monday sponsored by the American Enterprise Institute (AEI) in Washington. Those are the infrastructures on which the government systems ultimately depends," said panelist Richard Perle, a resident fellow with AEI. "Here the government has the least authority to deal with problem."
Comparing the cyber terrorist attacks on the U.S. critical infrastructure to an "electronic Pearl Harbor," Clark said there are "nation states actively engaged in reconnaissance." Everyone needs to be aware of the potential vulnerability. He also said that many web sites could have virus installed in their servers- something akin to a Trojan horse. Clarke indicated that the major setback in moving forward with a Cyber terrorism plan is a lack of funding from Congress.
But in assessing the challenges of a national security threat, Perle advocated a new kind of a response; one that would retaliate in greater measures to a "state-sponsored" cyber attack.
- by Maureen Sirhal
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