Globalization and International Trade -

Slide 1: 

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@unece.org

In this presentation: : 

In this presentation: Globalization and its challenges UNECE and e-business standards “success story” in Eastern Europe

Globalization and its challenges : 

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

UNECE : 

UNECE UNECE is setting standards (incl. for e-business) e.g. UN/EDIFACT the only global EDI standard Disparity of economic development in UNECE’s 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

e-business and international cooperation : 

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 –> €50m return from saving costs Finland (5m population) as a whole –> € 4b savings from e-invoicing EU (445m population) –> 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.

Slide 6: 

Rough idea of e-Invoices used in each sector POTENTIAL IMPACT IN FINLAND Source: Kari Korpela variation +/- 10%

Slide 10: 

Integrated Management of International Trade Information Flows Single Window Advance filing of trade information Advance exchange of information across borders Results: more efficient trade: less bureaucracy (the goal of trade facilitation) -> lower cost more security through better supply chain management inside and among countries –> better risk analysis integration with Europe [e.g. EU’s Single Administrative Document (SAD) based on the UN Layout Key in use in SEE, TRACECA] Harmonized (electronic) trade + documents, e.g.UNeDocs

Single Window (one of the models: single authority) : 

Single Window (one of the models: single authority)

Potential first step: gather all documents and required procedures in one place: the German experience: Formular Server: www.zoll.de : 

Potential first step: gather all documents and required procedures in one place: the German experience: Formular Server: www.zoll.de

Need to build electronic platforms : 

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.

Slide 14: 

Community network for e-business and a Single Window: DTTN, Kong Kong, China Sellers Carriers / Portals (Inttra, GTNexus) Buyers Freight Forwarders

Data harmonization : 

Data harmonization ___UN/TDED___ WCO Data Model Business Process Analysis User assessment Data harmonization Data Element Questionnaire Standard Data Set

Implementation : 

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).

A «Success Story»: Estonia : 

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

E-Government Index : 

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 France 4, 35 19

Active position of Government to involve the broad public : 

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@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

Some conclusions : 

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

Thank you ! : 

Thank you ! Mario Apostolov Regional Adviser, UNECE Trade tel.: +41 22 9171134, fax: +41 22 9170037, e-mail: mario.apostolov@unece.org