1. Joint Government-Private Sector Committee of Experts on Electronic Commerce THE DIGITAL DIVIDE PRESENTATION OF THE DELEGATION OF COLOMBIA Panama City, Panama, October 2001 Public FTAA.ecom/inf/112 October 25, 2001 Original: Spanish Translation: FTAA Secretariat

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

4. Latin America is the fastest growing IT market and also the least penetrated. It is expected to surpass North American, European and Asian markets. 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. 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. The IT Industry in Latin America

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 -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 1993199419951996199719981999200020012002 IT Growth GDP Growth 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% % IT vs. GDP

10. PC Market Penetration World Lat.Am. 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 200020012002 86%98%76% # PCs per 100 inhabitants

11. Internet Index Source: 2000 IDC/World Iimes Information Society Index (ISI) 10 20 30 40 50 60 70 80 90 Lat.Am. Av. World Av. Internet Use For Business Internet Users in Education Internet Users in The Home E-Commerce Expenditure

12. Internet Penetration World Lat.Am. 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 200020012002 51%58%44% # Users per 100 inhabitants

13. U$ M U$ 1000 M Fuente: IDC Colombia, 2001 Electronic Commerce Colombia

14. BACKGROUND

15. 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 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. In 1995, the government also started to promote the participation of Colombian enterprises in the Cebit Fair, held every year in Hannover, Germany. The IT Industry in Colombia

16. 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. 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. Activities in this sector have the support of various trade unions that make up the industry; FEDESOFT, ACIS, ACUC. The IT Industry in Colombia

17. 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.

18. 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.

19. The Ministry of Foreign Trade formulated the Strategic Export Plan 1999-2009, which maps out the course to follow to strengthen Colombia’s 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 Plan’s second strategy under Objective 1. Strategic Export Plan

20. CONNECTIVITY AGENDA

21. 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. Political Framework

22. 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.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 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.Country with world class Information Technology, positioning it as one of the 5 main exporters of software and related services. Vision of the Connectivity Agenda

23. 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. Mission of the Connectivity Agenda

24.  Take advantage of ICT  Close the gap  Business sector participation  New State model Specific Objectives of the Connectivity Agenda

25.  Access to Infrastructure  Education and Training  Content  Online enterprises  Developing the IT sector  Government on-line Strategies of the Connectivity Agenda

26. 1. Access to Infrastructure 2. Education and Training 3. Content 4. SMEs 5. Electronic Commerce Agenda for Areas of Action – Digital Divide

27. ¤ 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 1. Access to Infrastructure

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

29. 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 4. SMEs

30. . 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

31. 5. Online Stage II Stage I I No. of Services Service Levels StageIII Dec. 31, 2001Dec. 31, 2000 June 30, 2002 Online Services Online Procurement Information Online State information is a public good Presidential Directive 02/2000

32. Result 1 of the First Stage: Presence of National Public Entities on the Internet % Presence 100 % 80 % 60 % 40 % 20 % 0 % 203 162 121 81 40 0 Aug. 2000 114 56% No. Entities Sept. 2000 56% 114 Oct. 2000 56% 114 Nov. 2000 127 63% Jan. 2001 83% 168 Dec. 2000 151 74% Feb. 2001 March 2001 176 87% April 2001 184 83% 169 200 99% May 2001 91% June 2001 203 100%

33. Government Online – Stage 2 Stage II Stage I No. of Services Service Levels Stage III Dec. 31, 2001 Dec. 31, 2000 June 30, 2002 20012000 2002 Presidential Directive 02/ 2000 Online Services Online Procurement Online Information Simplify interaction Between Citizens and the State

34. Government Online – Stage 2 This is an image. Translation next page.

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36. Government Online – Stage 3 Stage IIStage I No. of Services Nivelesde Servicio Stage III Presidential Directive 02 of 2000 – Third Stage: Legal Framework Policy regulating agency Definition of the Operation and Management Model Online Services Online Procurement Online Information Dec. 31, 2001Dec. 31, 2000 June 30, 2002 Efficiency Transparency Probity

37. Compartel 2001 Compartel 2001 Measuring use and advantage taken TI-DANE Measuring use and advantage taken TI-DANE Education Portal Education Portal Strategy for development of IT industry in Colombia Strategy for development of IT industry in Colombia 6. Activities Pending Execution

38. STRATEGY FOR THE DEVELOPMENT OF IT INDUSTRY

39. 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 Colombia’s supply Development of human capital Establishment of strategic alliances Marketing of the IT industry in strategic positions Strategy for the Development of IT Industry

40. Concrete developments in the sector Call to the sector Call to the sector Investment proposals to multinational enterprises Investment proposals to multinational enterprises Videoconference between entrepreneurs of India and Colombia Videoconference between entrepreneurs of India and Colombia Andean Program for Technology Exportatiion and technological services CAF - Colciencias – Proexport Andean Program for Technology Exportatiion and technological services CAF - Colciencias – Proexport Silicon Valley - IBA Silicon Valley - IBA Development of agreements and associations that form part of IT industry Development of agreements and associations that form part of IT industry Bitkom Bitkom Nasscom Nasscom

41. Colombia IT Industry Objective Commercialization on the Latin American market of products of large enterprises Commercialization on the Latin American market of products of large enterprises Develop new software solutions Develop new software solutions Locate new support centers to meet the region’s needs Locate new support centers to meet the region’s needs Obtain technology transfers for our industry Obtain technology transfers for our industry Attract and have access to risk capital Attract and have access to risk capital

42. PROPOSAL OF COLOMBIA

43. ¤ 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. Proposals