1. Transforming the Digital Divide into a Digital Opportunity
Ting-An Wang, Ph.D.
Deputy Executive Secretary, Science & Technology Advisory Group
The Executive Yuan (The Cabinet), Taiwan
Feb. 20, 2003

2. Outline
Contributions in APEC of Transforming the Digital Divide into a Digital Opportunity
A Good Example – e-Taiwan Project
Conclusion

3. Contributions in APEC of Transforming the Digital Divide into a Digital Opportunity

4. Background & Objectives
Reducing digital divide has become most important elements of APEC’s regional development.
Strengthening capacity building through public-private partnerships to address the serious potential for the digital divide across the APEC region.
Ensure all people and small & medium sized enterprises (SMEs) in developing economies are well benefit from the digital society.
Faced with the challenges of an increasingly globalized economy, with ICT, and e-commerce playing an ever more important role, developing e-commerce capability has been high on the APEC agenda. In this context, reducing the digital divide has become one of the most important elements of APEC’s drive toward regional development.
To address the serious potential for the digital divide to further widen social and economic disparities across the APEC region, it is essential to strengthen capacity building through public-private partnerships.
These can ensure that all people, including in developing economies and in small and medium sized enterprises, are well positioned to benefit from the formation of a digital society.

5. Implementation
“Transforming the Digital Divide into a Digital Opportunity,” was proposed by Chinese Taipei and endorsed by APEC Ministers in November Phase I of the initiative, a symposium, was concluded in Taipei in July 2001.
A survey of 12 developing economies was conducted in November Supply chain management and capacity of SMEs to do e-business are the top priority from the result.
Three training workshops were convened in August-September 2002 in Thailand, Indonesia and Mexico.
Speakers in industrial or IT services were invited from Australia, Canada, Korea, New Zealand, Singapore, U.S.A. and Chinese Taipei.
Funding was provided by APEC TILF fund, Chinese Taipei and co-hosting economies.
The two-phase initiative “Transforming the Digital Divide into a Digital Opportunity,” was proposed by Chinese Taipei and endorsed by APEC Ministers in November Phase I of the initiative, a symposium, was concluded in Taipei in July 2001.
To prepare for implementation of Phase II of the initiative, a survey of 12 developing member economies, was conducted in November Its result indicated that supply chain management and the capacity of SMEs to do e-business are among the top priority areas of need in developing a digital society.
Based on the survey, three training workshops were convened in August-September 2002 in Thailand, Indonesia and Mexico. Each session lasted for three days and featured lectures, group discussions, and site visits, etc.
With the support of member economies, speakers with first-hand experience in industrial or IT services were invited from Australia, Canada, Korea, New Zealand, Singapore, U.S.A. and Chinese Taipei.
Funding for the three workshops was provided by APEC Trade, Investment, Liberalization & Facilitation fund, Chinese Taipei and by the three co-hosting economies.

6. Highlights of the Workshops
-- Thailand : August 28-30, 2002
-- Mexico : September 10-12, 2002
-- Indonesia : September 17-19, 2002
Participants:
-- Total number of attendees was over 250.
-- Participants were from the business sector and government agencies of the hosting economy.
delegates from APEC developing economies attended with program sponsorship.
-- Participants presented their own economies’ current e-business or e-government development situation.
Workshops:
-- Thailand : August 28-30, 2002
-- Mexico : September 10-12, 2002
-- Indonesia : September 17-19, 2002
Participants:
-- The total number of attendees for the three workshops was over Workshops varied from 50 to 160 participants.
-- The majority of participants were from the local community of the hosting economy and included representatives of the business sector and government agencies.
-- Around 6-10 delegates from APEC developing economies, such as Philippines, Malaysia, Indonesia, Thailand, Vietnam, Papua New Guinea, Mexico, Peru, and Chile, attended with the help of sponsorship provided by this program.
-- These participants delivered brief presentations on the state of current e-business or e-government development within their own economies.

7. Key Issues how to Transform Digital Divide into a Digital Opportunity (1)
E-Supply Chain Management: Implications and Challenges
E-business is a must to survive in globalized economy.
The key drivers are processes, technology, and people.
The foundation is comprehensive telecommunications infrastructure.
Communication network is a must for SMEs
Challenges faced by SMEs in implementing B2B e-commerce
cultural differences & language barriers
lack of clear business/revenue model
internet security
lack of qualified personnel
interoperability among e-commerce applications
executives’ awareness/ user authentication ’ challenges
E-Supply Chain Management: Implications and Challenges
E-business is not an option but a must to survive in globalized economy.
The key drivers for e-Business are processes, technology, and people.
The foundation that is necessary for e-Business to be able to grow in developing economies is a comprehensive telecommunications infrastructure.
the communication network is a must the capacity of SMEs is to be increased in this information age.
Challenges faced by SMEs in implementing B2B e-commerce
cultural differences & language barriers
lack of clear business/revenue model
internet security
lack of qualified personnel
interoperability among e-commerce applications
executives’ awareness/ user authentication ’ challenges

8. Accessibility & affordability are the major barriers in digital divide
Key Issues how to Transform Digital Divide into a Digital Opportunity (2)
Accessibility & affordability are the major barriers in digital divide
Government’s Roles
setting the vision and strategy to take a leadership role
As a role model for e-business and placing service on-line
resolving telecommunications/Internet access infrastructure issues
providing funding to assist business adoption of e-commerce
conducting education programs
fostering international cooperation
addressing standards and security
creating a regulatory environment
Accessibility & affordability are the major barriers for developing economies in digital divide : lack of basic infrastructure, high cost for telecommunication, barriers between city/country
Government’s Roles
setting the vision and strategy to take a leadership role in championing e-business
placing government services on line through e-government programs. The government has to be a role model for e-business
resolving infrastructure issues such as improved telecommunications and hi-speed internet access
providing funding for key programs and to assist business adoption of e-commerce
conducting education programs
fostering international cooperation to learn from other countries
addressing standards and security including PKI
creating a regulatory environment which reduces risks and removes barriers

9. A Good Example – e-Taiwan Project

10. Milestones of ICT infrastructure in major countries92
UK Online
▲01
▲96
★97
★98
▲00
IT 2000
Singapore One
IT in Education
Electronic Transactions Act
Infocomm 21
Singapore
▲93
★95
▲97
★98
▲99
★01
NII
EC Working Group
Global EC Framework
1st Report
2nd Report eGovernmenteSociety
3rd Report
USA
▲96
▲98
▲99
▲00
Building the Knowledge Driven Economy UK
Information Society ★ ★
Modern Government
eGov Services for the 21st Century
▲95
▲99
▲01
e-Japan
The S&T Basic Law
Millennium Project
Japan
▲93
★94
▲95
▲99
▲01
KII
MIC
BAPI
Cyber Korea 21
e-Korea
Korea
▲96
▲97
▲98
▲99
Taiwan
NII
e-Government
e-Industry
NICI
3Year 3 Million
Internet Users
1992
1993
1994
1995
1996
1997
1998
1999
2000
1992：Major IT Countries engaged various ICT projects (NII)
1999：Japan, Korea, Singapore launched major e-projects
e-Japan / Cyber Korea 21 / Infocomm 21

11. Taiwan e-Government Status (2001)
Current
Consolidate
Re-engineer
2001 Government Information Application
Complete
Transaction
Singapore
Redefine US UK
Government On-line Service Capability
Answer
Question
Japan
Rethink
Taiwan
Korea
Provide Information
Redo
Government Responsiveness

12. Taiwan’s Challenges & Opportunities
Taiwan ranks No.10 in Information Society Index –IDC (2001)
Broadband penetration ranks No. 4 – eMarketer (2002)
DSL penetration ranks No. 2 – Point-topic (2002)
Internet Host ranks No. 3 – Network Wizards (2002)
Mobile Phone penetration ranks No.2 worldwide –ITU(2001)
Taiwan hardware production : Global Ranking #4
Low value-added products : 79% of total IT revenue
Taiwan software revenue is only 7-8% of IT revenue
Opportunities
Broadband population still way behind Korea
Information application among traditional industry to catch up
Digital divide in remote area and under-privileged to be bridged up if not totally eliminated
More enterprises to be brought online
Facing the challenge of global knowledge based economy, out-moving business and decreasing total revenue.
IT industry needs to invest in information technology, strengthen R&D capability and upgrade with knowledge based economy to stay competitive.
Challenges

13. Knowledge Based Economy
e-Taiwan Project Mission
Manufacturing
Venture Capital
R & D
Knowledge Based Economy
Internet Usage
WEF/NRI
GDP 10 5
Current Economy Challenges
Knowledge Based Economy
Slowing Economy Growth
Changing Industry Structure
e-Infrastructure
Information Society 5
Trillion
e -Society
e-Taiwan Project
e-Government
Hsinchu Science-based Industrial Park
Ten Emerging Industry
Industrial Society
e -Transportation
e-Industry
Export Industrial Park Ten Infrastructure Projects 13
NII Projects
Custom Protection
Import Control
Import Substitution
Policy
Export Expansion /
Heavy Industrialization Policy
High-Tech Policy
e-Taiwan

14. e-Taiwan e-Taiwan Project Vision Infrastructure e-Business e-Society
High-Tech
Service Island
Knowledge Based Economy
e-Taiwan
Green Silicon
Island
Information-rich Society
Competitive
Industry
Effective
Government
Intelligent
Transportation
Best information
available
to its citizen
Best supports to its industry to stay competitive
One-Shop services to
its citizen
Best transporta- tion services to its citizen
e-Business
e-Government
e -Transportation
e-Society
NII
Advanced
Telecomm technology
NII
GII
GII
Broadband to every family
Infrastructure

15. e-Taiwan Scope e-Taiwan Government initiates, everybody participates.
Reach 6 million broadband users in 6 years.
Become the e-Leader in Asia.
Government initiates, everybody participates.
e-Society
e-Industry
e-Government
e-Transportation
e-learning
digital archive
digital entertainment
web culture development
remote public services
e-learning for small-to- medium enterprise
e-learning for farmers
real estate info center
Collaborating e-design
agriculture knowledge management
Small to medium enterprise knowledge management
International e-commerce cooperation program
one-shop service
G2B2C document exchange
video conference network
IP information system
household registration
hazards mitigation infomation center
hazards mitigation communication system
ITS platform & system development
transportation service network
smart bus & IC card
transportation safety system
Intelligent traffic control system
Infrastructure
6 million broadband users
wireless LAN
IPv6 Upgrade
national security system
broadband for small and medium enterprise

16. Major e-Index Measurement
National Economy Competitiveness
IMD & WEF
Information
Capability
e-Government
e-Business
e-Society
Government
Service
On-line
e-Business
Environment
Enterprise
Readiness
Support of
Supply
Chain e-
Leadership PC
Population
Communication
Infrastructure
Information Exchange
On-line
Document
Exchange
On-line
Social &
Cultural
Infrastructure
Innovation
& Creativity
Internet
Infrastructure
Connectivity
Legislation
Source：MOEA Internet Research Plan / III ECRC-FIND arranged from EIU, IDC及WMRC.

17. Goals of Taiwan’s E-Readiness

18. Predicted Benefits Economy create 20,000 jobs
total e-Service revenue NT$300 trillion
industry online 60%
e-Commerce is 15% of GDP
Public Services
bring 600 services online
G2B2C document exchange rate up by 55% in 5 years
satisfaction level reaches 75%
IT Application
#5 Internet Usage (WEF/NRI)
#5 e-Government (WEF/NRI)
#12 e-Industry Readiness
Infrastructure
Internet users reach 50% of population
broadband users reach 35% of population
overall country bandwidth reach 1,150Gbps
undersea cable bandwidth reach 250Gbps

19. Government’s role is one of an enabler, leader and educator.
Conclusion
Government’s role is one of an enabler, leader and educator.
Taiwan will continue to support developing countries for projects to reduce digital divide. These projects include experience-sharing workshops, IT school setting in Thailand, Maxico.
Developing countries should create a regulatory environment and take a leadership role in championing e-business.
Developing countries should resolving infrastructure issues, market entry barriers, and conducting education programs to lead the investment efforts from developed economies.
In sum, government’s role is one of an enabler, leader and educator.
Taiwan will continue to cooperate with other developed countries or international organizations to support developing countries for projects to reduce digital divide. These projects include experience-sharing workshops, IT school setting in Thailand, Maxico.
Developing countries should create a regulatory environment through policy & legal structure setting to take a leadership role in championing e-business
Developing countries should resolving infrastructure issues, market entry barriers, and conducting education programs to lead the investment efforts from developed economies & fostering international cooperation to learn from other countries