Seminar on Government Facilitation of E-Commerce for Development Government coordination @ Task Force on E-Commerce Venezuelan Mission Oscar Hernández

Seminar on Government Seminar on Government Facilitation of E-Commerce for Facilitation of E-Commerce for DevelopmentDevelopment

Government Government coordinationcoordination

@@ Task ForceTask Force

on E-Commerceon E-Commerce

Venezuelan MissionVenezuelan Mission

Oscar Hernández / Luisa RodríguezOscar Hernández / Luisa Rodríguez

Geneva, 14 June 2001Geneva, 14 June 2001

Task Force for the Task Force for the FacilitationFacilitation

of E-commerce for of E-commerce for DevelopmentDevelopment

1.- A challenge for public policy:1.- A challenge for public policy:• Obstacles for the use of information and Obstacles for the use of information and

communication technology in Developing communication technology in Developing CountriesCountries

• Objectives of the “internal coordination”Objectives of the “internal coordination”

2.- The Venezuelan Experience:2.- The Venezuelan Experience:• Strategic FrameworkStrategic Framework• Legislation and Development PlansLegislation and Development Plans• ActionsActions

3.- Future projects and their expected 3.- Future projects and their expected results.results.

Obstacles to the use of Obstacles to the use of information and communication information and communication

technologiestechnologiesin Developing Countriesin Developing Countries

Access

• High costs of hardwareHigh costs of hardware

• Low Penetration of infrastructure of Low Penetration of infrastructure of telecommunicationstelecommunications

• Cost of access to internetCost of access to internet

• Reduced number of persons with credit cardReduced number of persons with credit card

Know How

• Governments with little knowledge about Governments with little knowledge about e.commercee.commerce

• Lack of knowledge about the commercial Lack of knowledge about the commercial possibilities of internetpossibilities of internet

• Entrepreneurs prefer their “traditional way” of Entrepreneurs prefer their “traditional way” of doing bussiness doing bussiness

Confidence• Little security and confidenciality in the Little security and confidenciality in the

transactionstransactions

• Phone and fax are considered saferPhone and fax are considered safer

• Little certainty about applicable jurisdictionLittle certainty about applicable jurisdiction

Situation of internet Situation of internet accessaccess

in Venezuelain Venezuela

Source : Cavecom-E (1999)Source : Cavecom-E (1999)

Venezuelan population that had

access to the internet in 1999.

(Sorted by social class)

53%

10% 4%

33%

A-B

C

C

D

A challenge for public A challenge for public policy:policy:

Objectives of the “internal Objectives of the “internal coordination”coordination”

– Open and competitive Open and competitive telecommunications sectortelecommunications sector

– Create a framework of rules that Create a framework of rules that stimulate the access to infrastructurestimulate the access to infrastructure

– Educate the society in order to give it Educate the society in order to give it the capacity to take advantages of the the capacity to take advantages of the opportunities that e.commerce offersopportunities that e.commerce offers

– Transparency in the legal regimesTransparency in the legal regimes– Appropriate systems of security to Appropriate systems of security to

generate confidencegenerate confidence

The Venezuelan The Venezuelan Experience:Experience:

Strategic FrameworkStrategic Framework– DevelopDevelop a a national infrastructurenational infrastructure for for

Information Technologies (I.T.) that will Information Technologies (I.T.) that will allow to strenghthening of the human allow to strenghthening of the human capacities and improve the quality of lifecapacities and improve the quality of life

– Bring up human resources on the effective Bring up human resources on the effective use of the I.T., through use of the I.T., through trainingtraining activities activities which will allow the transmission of a which will allow the transmission of a creative attitudecreative attitude towards I.T. towards I.T.


Strategic FrameworkStrategic Framework– Contribute with the Contribute with the modernization modernization of of

the Venezuelanthe Venezuelan state. state. The use of the The use of the I.T. will:I.T. will:•Facilitate the Facilitate the communicationcommunication within the within the

Public Sector, with other Governments and Public Sector, with other Governments and with the citizenwith the citizen

• Improve the Improve the qualityquality of the of the public public servicesservices provided to citizens, institutions provided to citizens, institutions and organizations.and organizations.

– Promote the I.T. in the Promote the I.T. in the productive productive sectorssectors (public and private), in order to (public and private), in order to promote the quality and innovation, in promote the quality and innovation, in the context of digital world economythe context of digital world economy


Legislation and Development Legislation and Development PlansPlans– Presidential Decree for e-Government Presidential Decree for e-Government

(Nº 825, 10-05-01)(Nº 825, 10-05-01)– Telecommunications LawTelecommunications Law– Data Messages and Electronic Data Messages and Electronic

Signatures LawSignatures Law– Science, technology and Innovation LawScience, technology and Innovation Law– Data Security Law(Project)Data Security Law(Project)

– Information Technologies National Information Technologies National PlanPlan– Telecommunications National PlanTelecommunications National Plan


ActionsActions– INFOCENTROSINFOCENTROS– Thematic servers in health, production, Thematic servers in health, production,

education, science and environmenteducation, science and environment• http://www.venezuelasaludable.gov.ve/• http://www.venezuelaproductiva.gov.ve/principal.html• http://www.rena.e12.ve/.

– Project to provide I.T. to the small and medium Project to provide I.T. to the small and medium enterprisesenterprises

– ““Incubator” for the .com enterprisesIncubator” for the .com enterprises– Intranet/extranet of the Ministry of Science and Intranet/extranet of the Ministry of Science and

Technology as a role model for the public Technology as a role model for the public administrationadministration


Highlighting some of the Highlighting some of the actionsactions

Definition:Definition:– Adequate communitary Adequate communitary

spaces, provided with I.T. spaces, provided with I.T. Services. They have Services. They have progressively been increased progressively been increased in number and in services in number and in services provided.provided.

February 2001:February 2001:– Opening of 5 in the Opening of 5 in the

metropolitan area an 3 in metropolitan area an 3 in the interior. 21.050 users the interior. 21.050 users per monthper month

– Operation costs covered Operation costs covered by the Governmentby the Government

– Strategic alliances with Strategic alliances with public and private actorspublic and private actors

Products:Products:INFOCENTROSINFOCENTROS::

Objectives:Objectives:– Increase access to the Increase access to the

internet.internet.– Promote the access to the Promote the access to the

information to stimulate information to stimulate investigation and innovationinvestigation and innovation

June 2001:June 2001:– 240 in the whole country 240 in the whole country

with a capacity of with a capacity of 7.200.000 per month7.200.000 per month

– Communities centers and Communities centers and training centerstraining centers


Highlighting some of the Highlighting some of the actionsactionsMinnovación: automatic process for the Minnovación: automatic process for the

evaluation of projectsevaluation of projects• The user finds information and application forms to ask for The user finds information and application forms to ask for

financing in the area of the projects of the Science and financing in the area of the projects of the Science and Technology MinistryTechnology Ministry

– EducationEducation– HealthHealth– Modernization of enterprisesModernization of enterprises– Industrial grantsIndustrial grants

• Allows innovators, institutions, investigation centers, Allows innovators, institutions, investigation centers, enterprises, NGO to present proposals and requests for a enterprises, NGO to present proposals and requests for a reduction of the time of response.reduction of the time of response.

The requests are sent by internet to external evaluators The requests are sent by internet to external evaluators who give an opinion online about them, without knowing who give an opinion online about them, without knowing the identity of the petitionerthe identity of the petitioner

http://www.minnovacion.gov.ve/

Situation of internet Situation of internet access in Venezuelaaccess in Venezuela

207.000

817.000

526.000

3.800.000

1999

2000 (1st Semester)

2000 (2nd Semester)

2005 (Expected)

Number ofNumber ofinternet usersinternet users

Source: 1200 home interviews. DATANALISIS 2000

154% 300

%

Future projects and their Future projects and their expected results (dec. expected results (dec.

2002)2002) I nvestment US$

Direct Employment

Research and Development for the quality of life:

- Telemedicine f or 150 health centers

- 480 I nfocentros

- 2 Thematical Servers

397.727.272,7 2.730

Promotion of the human resources

- Training of 5.000 specialist in I .T.

56.818.181,8 5.000

• Increase from 4% to Increase from 4% to 25 % the internet 25 % the internet usersusers

• Give specialized Give specialized medical assistance at medical assistance at low cost and from a low cost and from a distancedistance

Future projects and their Future projects and their expected results (dec. expected results (dec.

2002)2002) I nv Employ. I ncome

Promotion of entrepreneurship and productive innovation

- 150 e.com enterprises were incubated

- Thematical server

56.818.182 2.040 1.198.181.818

e- Government

- Government Portals

- Use of e.mail by State Agencies

68.181.818

2.775.139.665

• More effective, efficient and More effective, efficient and transparent management:transparent management:

•Online procedures for Online procedures for Government ProcurementGovernment Procurement

•Online execution of the State Online execution of the State budgetbudget

• Stimulate the development of Stimulate the development of companies with techonological companies with techonological base and form more base and form more entrepreneurs on ICT in order to entrepreneurs on ICT in order to generate new opportunities of generate new opportunities of bussiness and sources of workbussiness and sources of work


in Latin Americain Latin America 1999 2005 Growth rate

VENEZUELA 0,3 3,8 1.167%

MEXICO 1,3 12,7 877%

COLOMBI A 0,5 4,5 780%

ARGENTI NA 0,8 7,0 775%

PERU 0,4 2,4 500%

CHI LE 0,5 2,7 440%

Source: Jupiter Communications

Million of Million of users:users:


in Latin Americain Latin America 1999 2005 Growth rate

VENEZUELA 4 348 8.600%

ARGENTINA 15 1.094 7.193%

MEXICO 25 1.542 6.068%

COLOMBIA 7 336 4.700%

CHILE 7 312 4.357%

PERU 5 164 3.180%

Source: Jupiter Source: Jupiter CommunicationsCommunications

Million of Million of US$:US$:

Agents who relate to each other by

electronic means

The relations with commercial expressionAre: B 2 C, C 2 B, and B 2 B

Gov. / Gov.Gov. / Gov.

(Information(Information))

Gov. / Cons.Gov. / Cons.


Gov. / Bus.Gov. / Bus.

Cons / Gov.Cons / Gov.


Cons / Cons.Cons / Cons.


Cons. / Bus.Cons. / Bus.

(C 2 B)(C 2 B)

Bus. / GovBus. / Gov Bus. / Cons.Bus. / Cons.

(B 2 C)(B 2 C)Bus / Bus.Bus / Bus.

(B 2 B)(B 2 B)

Documents

Seminar on Government Facilitation of E-Commerce for Development Government coordination @ Task Force on E-Commerce Venezuelan Mission Oscar Hernández