1. ELECTRONIC COMMERCE E-GOVERNMENT THE COSTA RICAN EXPERIENCE May 2002 Public FTAA.ecom/inf/142 June 4, 2002 Original: Spanish Translation: FTAA Secretariat

2. E-GOVERNMENT Costa Rica’s Experience l I. Some important Internet and electronic commerce indicators l II. Policies to promote electronic commerce l III. Conclusions

3. I. Some important Internet and electronic commerce indicators

4. E-GOVERNMENT Costa Rica’s Experience Internet access and use in Costa Rica (2000) l Population:4 million l Use the Internet:20% population l Have a computer: 21% households l Internet literate and actually use it:300,000 households National telephony coverage: 95% Literacy rate:95.5%

5. Costa Rica EXPORTS OF GOODS 1984-2000 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 19841985198619871988198919901991199219931994199519961997199819992000 Year US$ millions Others ITA Traditional

6. II. Policies to promote Internet and electronic commerce

7. E-GOVERNMENT Costa Rica’s Experience “Digital Agenda” 1. Improve infrastructure 2. Universal Internet access 3. New economy 4. Promote digital government 5. Legal framework

8. Digital Agenda I. Infrastructure l Objective: broaden Internet service capacity (bandwidth), lower cost and provide top quality infrastructure

9. Digital Agenda I. Improving Infrastructure Initiatives l Upgrading connectivity: telephony, cable connections, etc. l Fibre-optic ring connections l Maya 1 and Arcos 1 optical fibre submarine system l Network installation a) Advanced Internet Network b) GOBNET, CRNET c) Internet Network 2 d) EDUNET

10. Broadband Connections per 100 inhabitants Costa Rica* South Korea Canada United States Austria Netherlands Belgium Sweden Denmark Iceland Finland Japan Switzerland Australia Italy Spain Great Britain Norway France Germany Portugal (*) Forecast by MICIT Source: Prepared with OECD and MICIT data.

11. Digital Agenda 2. Universal Internet access l Objective: Extensive access to new technologies; electronic mail and Internet as vehicles for trade, education and cultural exchange

12. Digital Agenda 2. Universal Internet Access Initiatives: a) Seamless communication b) LINCOS c) Lower Internet rates d) Education and Human Resources: 4 Omar Dengo Foundation 4 CEFOF 4 CENFOTEC

13. Digital Agenda 2. Universal Internet access Seamless communication a) www.costarricense.cr :costarricense.cr l Costa Rica: free e-mail l First country worldwide l 150,000 users b) Telecenters: l A total of 187 telecenters in all towns throughout the country, public libraries and 30 post offices. Objective: 20% of the population

14. Digital Agenda 2. Universal Internet access LINCOS l www.lincos.net www.lincos.net l Costa Rican Foundation for Sustainable Development. Has two “strategic partners”: Media Lab of the Massachusetts Institute of Technology (MIT), Instituto Tecnológico de Costa Rica (ITCR) l A true alternative way forward for remote communities. l The program consists in setting up digital community centers offering access and intelligent use of information technologies, housed in a suitably re-conditioned cargo containers.

15. Digital Agenda 2. Universal Internet access LINCOS Services and Applications l Telemedicine l E-mail l Videoconferencing l Internet l Electronic commerce and distance education l And much more

16. Digital Agenda 3. New Economy l Objective: boost the growth of world class, Costa Rican technology-based companies that are integrated into the global economy; adapt the way business is done to internal and external factors

17. Digital Agenda 3. New Economy Initiatives Information Systems: ( www.infoagro.go.cr), (www.siec.go.cr ), (www.marketplacecostarica.com), (www.mipyme.com) www.infoagro.go.crwww.siec.go.cr www.marketplacecostarica.comwww.mipyme.com

18. Digital Agenda 4. Digital Government as model user l Objective: The government must act as a model user, providing local content and all types of on-line facilities for citizens (simple procedures, greater transparency, information- oriented culture).

19. Digital Agenda 4. Digital government as model user Initiatives l Government portal (www.go.cr)wwwgo.cr l CompraRed” (www.hacienda.go.cr/comprared)www.hacienda.go.cr/comprared l On-line tax declarations and returns (www.hacienda.go.cr/tributacion) (www.hacienda.go.cr/aduanas)www.hacienda.go.cr/tributacion) (www.hacienda.go.cr/aduanas l BUDHA (www.hacienda.go.cr/budha/)www.hacienda.go.cr/budha/ l Payroll (www.ccss.sa.cr/sicere)www.ccss.sa.cr/sicere

20. Digital Agenda 4. Digital government as model user Initiatives l On-line payment of services (www.ice.go.cr/servicios, www.cnfl.go.cr/linea/pago.htm, www.netsalud.sa.cr/aya, www.bncr.fi.cr, www.bancobcr.com)www.ice.go.cr/servicios www.cnfl.go.cr/linea/pago.htmwww.netsalud.sa.cr/aya www.bncr.fi.crwww.bancobcr.com l One-stop portal (www.procomer.com)www.procomer.com l Costa Rican Legal Information System (www.poder-judicial.go.cr ó www.pgr.go.cr)www.poder-judicial.go.crwww.pgr.go.cr l Office of the Comptroller General of the Republic (www.cgr.go.cr)www.cgr.go.cr l National Registry (www.registronacional.go.cr)www.registronacional.go.cr l Social Portal (www.imas.go.cr)www.imas.go.cr

21. Digital Agenda 5. Legal framework l Objective: Develop a legal framework that provides the level of certainty required while not imposing but, rather, eliminating unnecessary trade barriers.

22. Digital Agenda 5. Legal framework i. - “Draft Law on Digital Signatures and Digital Certificates”, File No. 14.276, of 30 April Published in Official Gazette No 82, Bulletin No 31. ii.- Other draft laws

23. Digital Agenda 5. Legal framework iii.- Intellectual Property: l Law No. 7979 of 31 January 2000, reforms to the Law on Copyright and Neighboring Rights l Law No. 7968 of 22 December 1999, WIPO Copyright Treaty (WCT), l Law No. 7967 of 22 December 1999, WIPO Performances and Phonograms Treaty (WPPT). l Law on Procedures for Enforcement of Intellectual Property Rights, Law No 8039 of 2 October 2000.

24. CONCLUSIONS l Greater efficiency, lower costs, and transparency in public administration are some of the intrinsic benefits of adopting information technologies, which, in turn, will make it possible to attain a higher level of democracy. l E-government facilities include user access to information on State institutions, formalities and requirements, consultation services and on-line transactions and payments. The information is provided with links between all the agencies and agents. l E-government must operate as a tool for integrating the private and public sectors and civil society.

25. CONCLUSIONS l In addition to simplifying procedures, ensuring enhanced transparency and cutting red tape, it paves the way for an information-oriented culture, thus eliminating the obstacles to using digital media. l The aim is to create a more efficient State through the use of the Internet and at the same time, its role as a model user of information technologies. l With the State serving as “model-user,” people’s trust in the use and security of these technologies will increase. Consequently, Internet supply and demand will increase and lead to a more favorable environment for electronic commerce.

26. CONCLUSIONS l The task will not be easy. Systems that add value to government tasks are needed to create local Internet content and contribute to efforts to close the digital divide, support the private sector and improve infrastructure. l “Creating a digital superhighway is not enough if it is not used or if people do not know how to use it, and this is where the government plays a fundamental role - in promoting and using this superhighway.”