globalization and international trade - mario apostolov

8/8/2019 Globalization and International Trade - Mario Apostolov

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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

[email protected]


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In this presentation:

Globalization and its challenges

UNECE and e-business standards

success story in Eastern Europe


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Globa

lization and its cha

llenges

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


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UNECE

UNECE is setting standards (incl. for e-business) e.g. UN/EDIFACT the only global EDI standard

Disparity of economic development in UNECEs

regionE-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


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e-business and international cooperation

e-business has definite advantages, but it may not take off, if it isleft to purely market forces.

Same is true about the use of international standards for e-business.

A driving force for implementation is needed: States, internationalorganizations and the business community should work together.

Example - electronic invoicing: Everyone knows it is useful, but noone wants to pay to develop a system for all.

Kareltek (Finish company) developed and sold e-invoices for 6months 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 ensureinclusiveness of the benefits of ICT.

UNECE supports international standards, e.g. for e-invoicingwith the support of public (ICC, IATA, Governments) and


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Rough idea of e-Invoices

used in each sector

Increasing the competitiveness:

40.000 (80 %) Man-years from Support Functions to Client Service and Production

organisations InvoicesEffort in

Man-yearsSaving in

(20/eDoc)

SMEs 225500

Big companies 500

eB2B total 226'000 220'000'000 48'000 4'400'000'000

eGovernment

State treasury 117 4'000'000 933 80'000'000Customs 1 52'000 12 1'040'000

declarations 1 3'000'000 60'000'000

Cities/comm. 54 7'000'000 1'632 140'000'000

Health care 1'500'000 350 30'000'000

eB2G total 15'552'000 3'000

51'000

POTENTIAL

IMPACT INFINLAND

Source: Kari Korpela variation +/- 10%


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Integrated Management of International

Trade Information Flows

Single

Window

Advance filing

of trade information

Advance exchange

of information

across bordersResults:

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. EUs Single Administrative Document

(SAD) based on the UN Layout Key in use in SEE, TRACECA]

Harmonized

(electronic)

trade +documents,

e.g.UNeDocs


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Electronic

Authority 3

Single

Authority

Authority 1

Authority 2

Authority 4

3-a: 'Single Authority'

Paper

Trader

(incl. Transport)

Single Window(one of the models: single authority)


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Potential first step: gather all documents and required

procedures in one place: the German experience:Formular Server: www.zoll.de


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Need to build electronic platforms

Community networks in ASEAN: Singapore -

TradeNet, Malaysia DagangNet; Korea

KTNET, Hong Kong DTTN, TunisiaTradeNet, etc.

Single Windows in:

ports: Hamburg, DE (Dakosy), Felixtowe, UKairports: Schiphol, NL

based on Customs: Sweden, Senegal.


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Community network for eCommunity network for e--business and abusiness and a

Single Window: DTTN, Kong Kong, ChinaSingle Window: DTTN, Kong Kong, China

SellersCarriers / Portals

(Inttra, GTNexus)Buyers

Freight

Forwarders

Document

Exchange &

Transformation

Communications

Gateway

CustomerManagement

Security

Services

Support &

Operations

Management

Web

Services

DTTN Core Messaging Infrastructure

Banks &

Financial

Institutions

Terminals

Inspection

Agencies

Insurance

Institutions

Government

&Agencies

V alue A dd ing

ServiceP roviders

e.g. Tradelink

R eg ional/

G lobal ServiceP rov iders


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Data harmonization

___UN/TDED___

WCO Data Model

Business

Process

Analysis

User

assessment

Data

harmonization

Data Element

Questionnaire

Standard

Data Set


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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 evolvingtechnologies.

Project management requires: user orientation (concrete needs ofthe national economy); high level of ICT expertise; goodunderstanding 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 inpositions and interests of stakeholders persist).


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A Success Story: Estonia

Low starting point: weak, centrally planned

Very fast expansion of ICTs (24% of Estonianexports now ICT products and appliances)

Dedicated young, dynamic, technically educatedpoliticians

Neighbours helped: Finland saw Estonia as anextension of its ICT market; Sweden oversees the

banking sector Predisposition to ICT communications in a

country where most people live separately inhouses and farms (like all Nordics)

Now slowdown (?) or others are catching up


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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


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Active position of

Government to involve the

broad public Public projects to enhance access: forschools, local government, libraries

Privatization and liberalization of telecoms

Public Private Partnerships: Look@worldproject - private initiative to bring peopleonline

Common use of authentication services:Joint PKI development; Estonian ID-card canand is used as authentication tool for e-services and digital signature

+ redis osition o the o ulation


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Some conclusions

Globalization is potentially positive, but needs

better management: well-designed rules

Important to position e-trade in a broader contextof 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


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Thank you !

Mario Apostolov

Regional Adviser, UNECE Trade

tel.: +41 22 9171134, fax: +41 22 9170037, e-mail:

[email protected]

globalization and international trade - mario apostolov

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