bulgaria adopts revolutionary e-governance act · 2020. 1. 7. · i-ways, i-ways journal of...

I-WAYS, I-Ways Journal of E-Government Policy and Regulation 31 (2008) 147–152 147IOS Press

E-Government Developments

Bulgaria Adopts RevolutionaryE-Governance Act

George DimitrovLaw Firm Dimitrov, Petrov and Co, Sofia, BulgariaE-mail: [email protected]

On November 23, 2007 in the National Assem-bly of the Republic of Bulgaria was tabled thebill of the E-Governance Act (EGA) see websitewww.parliament.bg/bills/40/602-01-105rtf, which isintended to govern the activity of the administra-tive bodies when working with electronic documents,the provision of electronic administrative services andelectronic documents exchange between administrativebodies. Aiming to provide high quality service to cit-izens the scope of the Act encompasses also the per-sons carrying out public functions and organizationsproviding public services unless otherwise specified inthe Act. EGA entered into force on the June 13, 2008.

The EGA is a revolutionary act, aiming at reformingsubstantially the activity of the administrative bodiesthrough implementing information and communicationtechnologies and at turning the public administration tobetter serving citizens. Such reform could be achievedby overall rearrangement of all business processes inBulgaria and change of the basic principles, which gov-ern the work of the public administration.

With reference to implementation of the reform EGAidentifies three main groups of relations:

1. relations related to the provision of electronic ad-ministrative services to citizens;

2. relations related to internal exchange of informa-tion and documents and the workflow of paperand electronic documents; and

3. relations related to the automated exchangeof electronic documents between administrativebodies.

Principles

Aiming to achieve its main goals EGA introducesthree fundamental principles:

Principle of one-time data collection and datacreation

This principle means that administrative bodies, per-sons carrying out public functions and organizationsproviding public services are not allowed to requestfrom any person to present or produce evidence of al-ready collected or created data, respectively to presentdocuments, being already collected or created by an-other administrative body. The principle of one-timedata collection and data creation implies the obligationthat these data, respectively documents be obtained exofficio from the body,which by virtue of law will collector create such data for the first time and will thereafteramend or erase such data.

Principle of ex-officio notification

The second fundamental principle of EGA refers tothe obligation of any administrative body that first cre-ates or collects data about a citizen (“primary admin-istrator”) to send these data ex officio to any adminis-trative body, person carrying out public functions andorganization providing public services, which lawfullykeep such data and have requested an update.

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148 George Dimitrov / Bulgaria Adopts Revolutionary E-Governance Act

Principle of automated submission

This principle requires that the administrative bodiesmust exchange data between themselves by electronicmeans only and in automated regime. Where the lawrequires keeping of registers in hardcopy, documentsmay be exchanged as an exception in hardcopies or aselectronic documents with unstructured content.

Obligations of the providers of electronicadministrative services

In pursuance of law administrative bodies, personscarrying out public functions and organizations pro-viding public services shall provide all services withintheir competence by electronic means, unless the lawprovides for special form for carrying out individualactions or issue of relevant acts.

All administrative bodies, persons carrying out pub-lic functions and organizations providing public ser-vices, which provide electronic administrative servicesto citizens and organizations within their competenceare considered providers of electronic administrativeservices and therefore they are obliged to comply withall legal requirements for the provision of such services.Providers of electronic administrative services shallnot refuse accepting electronic documents, issued andsigned according to the requirements of the ElectronicDocument and Electronic Signature Act (EDESA) andEGA, and shall not deny issuance of electronic docu-ment or providing electronic administrative services.

EGA obliges the providers of electronic administra-tive services to provide unhindered, direct and perma-nent access for the service-users to information abouttheir accurate name, head office and address, addressesof their territorial offices, the bodies supervising theiractivity, the way and order for submission of propos-als, warnings and complaints and the administrativeproceedings, the charges due for the services, if any,as well as contact details, including phone, e-mail andweb site with interface for electronic communication,as well as their unique identifier.

With regard to providing high quality administra-tive services to citizens EGA incorporates a number ofnew obligations for the administrative bodies, the per-sons carrying out public functions and the organizationsproviding public services. First of all these personsbeing providers of electronic administrative servicesshall enable the citizens and organizations to indicateunique identifier when requesting a specific electronic

administrative service and respectively they shall iden-tify themselves. Secondly, the Act incorporates a spe-cial rule for uniform astronomical time, which requiresthat administrative bodies, persons carrying out pub-lic functions and organizations providing public ser-vices use only information systems, which indicate as-tronomical time according to a standard, specified bythe Council of Ministers. By introducing that rule theoccurrence of facts with legal or technical meaning willbe reported punctually to year, date, hour, minute andseconds, furthermore based on a legally fixed standard.

In case the work and processes of providing elec-tronic services in a specific sector require special rules,enhanced criteria for information safety or special stan-dards for operational compatibility, then these will beestablished by regulations issued by the relevant min-ister. However the special sector rules, which may beintroduced by such regulations, shall not contradict orrepeal the general rules of EGA and shall not exemptthe providers of the relevant electronic services fromthe obligation to adhere to the general rules of the law.

Provision of electronic administrative services

EGA governs administrative services, provided tocitizens and organizations by administrative bodies,services provided by persons designated to carry outpublic functions, and public services that may be re-quested and/or provided remotely by electronic means(electronic administrative services). The Act requiresthat every provider of electronic administrative servicesshall make public its official internet site and shall an-nounce the provided services in a clear and accessiblemanner by providing freely and free of charge detailedinformation about any offered electronic administra-tive service, including in its territorial offices, in themunicipalities and on the official internet site.

In terms of improving the quality of providing ser-vices to citizens and organizations, the Minister of StateAdministration and Administrative Reform shall estab-lish and maintain an integrated portal for access to elec-tronic administrative services, and the services shall beprovided in an accessible way in a user-friendly dialogmode. The services also shall be customized for use bydisabled persons.

When providing electronic administrative services,the providers shall inform users in advance in a clear,understandable and unambiguous way about the tech-nical steps for the provision of the relevant service, itslegal meaning and the term for its provision, whether

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the issued act will be stored in electronic form by theprovider and how it may be accessed, the technicalmeans for finding and correcting errors in the processof data entry before making statements for the serviceand the languages in which the service is available.

In connection with the provided services, everyprovider shall ensure adequate, efficient and accessi-ble technical means for finding and correcting errors inthe process of data entry before the service user makesthe relevant statements. Further the Act obliges everyprovider of electronic administrative services to pro-vide access for users to its acts and other statements inconnection with the service provision in a way enablingtheir storage and reproduction.

EGA imposes restrictions that the providers of elec-tronic administrative services may collect, process andsubmit personal data only as far as necessary for theprovision of the relevant electronic services and pro-hibits the use of the collected data for any other pur-poses, except with the explicit consent of the person towhich they refer or if permitted by law.

Submission of electronic documents

In connection with the use of electronic administra-tive services EGA settles the opportunity that their usersmay make electronic statements and may send themby electronic means subject to submitted documentsbeing issued and signed according to the requirementsof EDESA. Particularly submission of electronic docu-ments by citizens and organizations may be carried outonline by a standard protocol through a public accessi-ble web-based application, through the integrated envi-ronment for documents exchange or in any other wayfor submission of electronic documents, established bya Regulation of the Council of Ministers.

EGA provides the adoption of bylaws to define in-terfaces, which will ensure the execution of electron-ic statements and creation of electronic documents incompliance with requirements of EDESA in easy anduser-friendly way, including customized for disabledpersons.

Users of electronic administrative services and au-thors of electronic statements according to EGA shallidentify themselves by their unique identifier unlessthe law provides that the use of specific administra-tive services does not require identification. Integrityand authorship of electronic statements in connectionwith electronic administrative services is establishedby electronic signature, created according to EDESA

subject to the observance of any other normative re-quirements, unless the law provides otherwise. For theuse of electronic administrative services EGA requiresthat certificates of electronic signatures are issued withaccurate indication of the full name of the signatoryand when the certificate contains data about the holder– its full name. If the certificate of electronic signaturespecifies that the applicant acts on behalf of anotherperson, then the authorization shall be also mentionedin the certificate, and if authorization of the applicantresults from other authorized persons, it shall containdata about these persons. In case certificate for elec-tronic signature is used, which does not contain da-ta about the relevant authorization, the applicant shallspecify in the electronic statement that he acts on behalfof the receiver of the electronic administrative service.Every provider shall enable the signatories to specifyin the electronic statements the capacity in which theyact.

EGA obliges the users of electronic administra-tive services to accept electronic statements from theprovider for receipt confirmation and for the result fromthe verification of the validity of submitted documents.In connection with the provided services, the user shallspecify e-mail address for receiving electronic state-ments from the provider. In case that the user changesits address without notifying the provider or he has pro-vided wrong or non-existing e-mail address, any mes-sages sent to the specified address will be consideredduly received.

The Act empowers the Council of Ministers to pro-vide by regulation for the purposes of e-Governmentthe use of a special e-Mail box, created for every citizenand organization willing to communicate electronicallywith the public administration. The information sys-tem for electronic statements exchange by e-mail shallbe maintained by the Ministry of State Administrationand Administrative Reform.

In addition to the obligation to specify correct e-mailaddress every user of electronic administrative serviceshall communicate to the provider any changes in thedeclared circumstances, referring to the representativeauthority and the consent for receiving electronic state-ments.

For every submission of electronic statement the Actprovides immediate verification of the applicant’s iden-tity by comparing the applicant’s name, indicated inthe statement and the author’s name, contained in thecertificate of electronic signature and verification inthe relevant administrative body, responsible for thepersonal registration of physical persons whether the


unique identifier (Personal No/ BULSTAT) of the ap-plicant indicated in the statement corresponds to thename indicated by the applicant. Validation of identityof legal entities shall be made by check in the relevantregisters of legal entities. If the technology allows so,these verifications shall be made automatically. Thelaw provides an exception from the requirement for val-idation of the applicant’s identity when the use of spe-cific administrative service does not require applicant’sidentification.

A key requirement of EGA in connection with thereform in the administrative service provision is thatall statements of citizens, acts of the court, as well asother acts of administrative and other bodies, submittedas hardcopies, are entered in the information systemof the relevant administrative body by scanning themin a readable way. Thus the electronic exchange ofthese documents between administrative bodies will beenabled.

Receiving electronic documents

The Act sets a rule whereby an electronic statementshall be considered received by the provider of elec-tronic administrative services when it is received in itsinformation system or in the integrated environment ofdocument exchange. The risk of errors occurred duringtransmission of the statement to the service provider isborne by the applicant. In case a document submittedby electronic means does not comply with the estab-lished format or the applicant may not be identified,a message will be sent to the applicant that receipt isnot confirmed and the specific reasons thereof. For ev-ery incoming valid electronic document received in theadministrative body, an automatic receipt confirmationwill be generated and sent to the applicant, containingregistration number, time of receipt of the electronicdocument and information about access to the receivedelectronic document. Confirmation shall be in Bulgar-ian language in the Cyrillic alphabet with translitera-tion in the Roman alphabet. It could be also made insome of the official languages of the European Union.Confirmation shall be signed and sent to the applicant’se-mail.

Upon receipt of any submitted electronic documentthe provider of the relevant electronic administrativeservice shall check the validity of the request and thecompleteness and accuracy of submitted data and incase that any irregularity is established, it shall send anelectronic message for its rectification, specifying thedeadline thereof.

Sending and storing electronic documents

EGA provides that electronic statements of provi-ders, addressed to users of electronic administrativeservices, shall be sent to the e-mail addresses, specifiedby the users. As to administrative bodies, EGA pro-vides additional requirement that all received and sentelectronic documents shall be saved in the informationsystem of the relevant administrative body.

Inner electronic administrative services

In pursuance of the fundamental principles, pro-claimed in the EGA, all administrative bodies, per-sons carrying out public functions and person provid-ing public services, unless the law provides otherwise,are obliged to provide to each other electronic admin-istrative services, connected with the execution of theirauthorities and with the provision of electronic admin-istrative services to citizens and organizations. Innerelectronic administrative services, according to EGAare internal administrative services, which may be re-quested and/or provided remotely by electronic means,offered by persons carrying out public functions andorganizations providing public services to each otherand to administrative bodies. Such services may bealso provided by the administrative bodies to the per-sons carrying out public functions and organizationsproviding public services.

EGA provides that inner electronic administrativeservices shall be provided through the integrated en-vironment for electronic documents exchange, whichshall be implemented and maintained by the Ministerof State Administration and Administrative Reform.

Every administrative body shall request inner elec-tronic administrative services from the competent ad-ministrative bodies by submitting standard queriesbased on the technological description of the relevantservices (XML), entered in the Electronic ServicesRegister and the relevant competent authorities shallprovide the service immediately in the standardizedformat.

Internal turnover of electronic documents

Rules for internal turnover of electronic documentsand paper-based documents shall be established by aRegulation of the Council of Ministers, as well as bythe internal rules for internal turnover of electronic doc-uments and paper-based of every administrative body.

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Interoperability and information security

The EGA arranges the basic requirements for inter-operability and information security to ensure the pro-vision of high-quality service to citizens and organi-zations and the normal functioning of the administra-tive bodies. According to EGA the provision of in-ner electronic administrative services and exchange ofelectronic documents between administrative bodies,persons carrying out public functions and organizationsproviding public services shall be made in an interop-erable way and the general requirements for interop-erability and information security shall be establishedby a Regulation of the Council of Ministers. The lawalso introduces provisions for ensuring integration ofthe national information system with the systems of theMember States of the European Union in order to en-able provision of cross-border electronic administrativeservices.

To ensure interoperability the administrative bodiesshall apply the specified uniform standards and rulesand shall ensure that their information systems main-tain the technological and functional parameters spec-ified therein. Further for the purpose of ensuring se-mantic interoperability of the electronic document ex-change between administrative bodies, provisions aremade for harmonizing all data objects, subject to stor-ing in databases or in registers and formalization of alldata and administrative services to ensure automatedexchange between administrative bodies and data pro-cessing. All formalized data and formalized descrip-tions of electronic administrative services shall be en-tered in the register of information objects, respectivelyin the register of electronic services.

EGA obliges the administrative bodies to ensure in-formation security of their information systems basedon the requirements and the safety standards. To ensureinteroperability and information security the adminis-trative bodies shall use information systems, certifiedby accredited persons.

Last but not the least all information systems of theadministrative bodies shall maintain functionality andinterfaces for automated transmission, respectively ser-vicing, of standardized queries for electronic adminis-trative services.

Interoperability registers

To ensure interoperability EGA provides creatingand keeping the following registers:

Register of standards

This register will contain technical standards to beapplied by administrative bodies for provision of elec-tronic administrative services and for provision of in-teroperability, information security and automated ex-change of information and documents between admin-istrative bodies and will be kept by the State Agencyfor Information Technologies and Communication.

Register of information objects

This register will contain all information objects (sin-gle or composite data, collected, stored or processedin execution of the powers of any administrative body)and will be kept by the Minister of State Administrationand Administrative Reform. Standardized descriptions(in XML format) of every information object, whichis collected of created by any administrative body, aresubject to registration in this register.

Electronic Services Register

The Electronic Services Register as an integratedcentralized electronic data base, controlled by an infor-mation system, and contains description (in XML for-mat) of all electronic administrative services and innerelectronic administrative services,provided through theintegrated data exchange environment and in compli-ance with standardized description of information ob-jects, entered in the Register of information objects. Itshall be kept by the Minister of State Administrationand Administrative Reform. According to EGA everyadministrative body shall submit to the Electronic Ser-vices Register a standardized description of all elec-tronic administrative services and inner electronic ad-ministrative service, which the relevant administrativebody provides.

Supervision

The overall control on the observance of EGA is as-signed to the Minister of State Administration and Ad-ministrative Reform, and the control on the provision ofinteroperability and information security – to the Chair-man of the State Agency for Information Technologiesand Communications.


By-laws

Being an act directed to legal regulation of techno-logical processes featuring great dynamics of develop-ment and improvement the bill makes provisions forthe adoption of a number of by-laws (regulations) toensure adequacy of the current regulation toward thequickly changing technological basis of the processes,connected with e-Government. Most of the envisagedbylaws are presently enacted by the Council of Minis-ters. They develop further the principles of the law andprovide the dynamic regulations for implementing theAct.

The specific bylaws, which were adopted in pur-suance of the Act, are the following:

Regulation on the Electronic Administrative Services

This Regulation governs the general requirements forthe provision of electronic administrative services; themethods of electronic payment with regard to the pro-vision of electronic administrative services; the tech-nical requirements for providing access to electronicadministrative services and policies of the providers ofelectronic administrative services for used graphic andother interfaces of the information systems; the inter-faces, methods and rules for submission of electronicdocuments by citizens and organization in connectionwith the provision of electronic administrative services;the formats and the mandatory requisites, which theelectronic documents shall comply with; the special e-mail, created for every citizen and organization in aninformation system for electronic statements exchangeby e-mail, kept by the Ministry of the State Admin-istration and Administrative Reform for the needs ofe-Government; the special methods of identification ofapplicants;

The Regulation also governs the standard for report-ing the astronomical time by the information systemsof the administrative bodies, the persons carrying outpublic functions and the organizations providing publicservices.

Regulation on the Certificates for ElectronicSignatures in the Public Administration

The Regulation governs the rules for obtaining, use,renewal and termination of certificates of electronicsignatures in the administrative bodies.

Regulation of the Integrated Environment forElectronic Documents Exchange

The Regulation shall govern the requirements to inte-grated environment for electronic documents exchange.

Regulation on the Internal Turnover of Electronic andPaper-based Documents in the Administrations

This Regulation governs the requirements for storageof all received and sent electronic documents in theinformation system of every administrative body andthe general rules applicable to the internal turnover ofelectronic documents and paper-based documents inthe administrative bodies.

Regulation on the Interoperability and InformationSecurity

The Regulation is expected to be enacted within amonth. It shall govern the general requirements to in-teroperability and information security; the keeping,storing and access to the register of the standards; thesafety requirements and standards, which the informa-tion system shall meet for data entry, sending, process-ing, access, exchange, storing and backup; the generalinformation security measures to be undertaken by theadministrative bodies; the methods and the rules forevaluation of the compliance of the information sys-tems with the requirements for interoperability and in-formation security; and the methods of accreditation ofpersons, attesting the compliance of information sys-tems with the requirements to interoperability and in-formation security and the requirements to their activ-ity.

Regulation on the Register for Information Objectsand Electronic Services

The Regulation governs the keeping, storing and ac-cess to the Register of information objects; the techni-cal standard for description of information objects; thekeeping, storing and access to the Electronic ServicesRegister; and the technical standard for description ofelectronic administrative services and inner electronicadministrative services, provided through the integrat-ed data exchange environment.

Tariff for the State Fees for Accreditation of Persons,Attesting the Compliance of the Information Systemswith the Requirements to Interoperability andInformation Security is also enacted by the Council ofMinisters



GIIC Tokyo Resolution for Powering Greenin Future of ICT

The Global Information Infrastructure Commission(GIIC) is a confederation of chief executives and otherofficers of business firms engaged in the development,manufacture, deployment, operation, modernization,financing, and use of services and products based uponinformation and communications technologies. Theseexecutives head enterprises headquartered throughoutthe world and, as GIIC commissioners, are convincedthat ICT-based capabilities have given rise to a rapidlyevolving new era, denoted most frequently as an “infor-mation society,” and widely regarded as one that tran-scends borders and is an increasingly powerful force inall societies. As such, they acknowledge and are dedi-cated, through the instrumentality of the GIIC, to fulfillthe essential role that must be played by the private sec-tor (by virtue of its technological, human, and financialresources) to foster the development of an informationsociety that is sustainable, equitable, and enhances theeconomic and social well-being of people everywhere.

Toward these ends, the GIIC mission is to: (1) ad-vocate the promulgation, adoption, and enforcementof representative public policies; (2) convene forumswithin which to address public policy challenges anddifferent approaches thereto; (3) collaborate with othersectors of society; (4) conduct formal studies; and (5)publish and in other ways share and disseminate theconclusions of its deliberations and research. The or-ganization held its 2008 annual meeting in Tokyo, host-ed by Naoyuki Akikusa, Chairman of Fujitsu Limited.A main output of this event was adoption of the GIICTokyo Declaration.

The GIIC Tokyo Declaration

“The purpose of the GIIC forum this year has beento address the global awareness of the challenge of

climate change, and to assess the contributions thatinformation and communications technology (ICT) canmake to help reduce the burden on the environmentwith a focus on the actions required by ICT sectorstakeholders. The main focus points are: (1) to reducethe burden of ICT products and services by introducingenvironmental friendly design and innovation; and (2)pervasive models of business and social applications ofICT to market efficiencies, business culture, and socialprocesses.

As a result of the forum, GIIC executives have con-cluded that the ICT sector has a mixed impact on theenvironment, and will continue to remain a challengeto the environment as ICT becomes increasingly cen-tral to economic growth and innovation. Currently, theICT sector contributes approximately 2% of the glob-al greenhouse gas (GHG) volume, principally as a re-sult of the environmental burden of electrical energyproduction. As economies leverage ICT for economicsustainability and advancement, there is a risk that thegrowing prevalence of ICT-dependent appliances willincrease that percentage and add to the perception thatICT is an overall drain on environmental health, evenwhile it is a central driver of economic health.

To respond to this challenge, the ICT sector has ad-dressed the issue of Climate Change through variouspower-saving technologies and an embrace of energyefficient multi-core processors. The ICT sector is com-mitted to setting its own “house in order” through a fo-cus on efficiencies in computing design, ICT sector en-ergy use, while also emphasizing the positive impactsof ICT on efficiencies in other sectors of the economy.Absent a change in the energy-consumption matrix, theGIIC recognizes that energy consumption could de-velop into the new “digital divide” as the ICT sectorattempts to service its next billion users.


154 GIIC Tokyo Resolution for Powering Green in Future of ICT

Given that ICT is a driver of economic growth, butthe state of our environment is impacted by the energydemands of ICT, it is clear to the GIIC that economicgrowth and environmental stewardship are linked. Theexpanded utilization of ICT will be as vital to economicgrowth in the 21st century as the use of fossil fuelswere to economic growth in the 20th century. Butour industries must recognize that the environmentalburden of ICT use in the future cannot follow the samepath that it has in the past – greater efficiencies must berealized in enabling other industries.

Achieving sustainable ICT growth coupled with en-vironmental stewardship is critically important for thereduction of GHG production even as economies turnto ICT for innovation in the delivery of products andservices. ICT has a tremendous potential to mitigatethe challenges of climate change, and therefore "ICT isa solution, not the problem". ICT has historically beenviewed as a tool to advance productivity. We found andconfirmed that the use of ICT can change the behaviorof business and consumers, and through these changes,ICT can help the environment without sacrificing eco-nomic output. The GIIC executives have agreed tocommit to minimize the burden of ICT products andservices, and to maximize the helpful effects by usingICT products and services, and therefore, maximizingthe difference between the burden and the benefit ofour sector. We have agreed to these commitments asthe Tokyo Declaration and have established the GIICWorking Group on ICT and Environmental Steward-ship to monitor developments and report on members’environmental initiatives and activities.”

Background

The GIIC has been addressing, since its outset in1995, major issues facing the information and commu-nications technologies and the information society andthat there may be no more critical and relevant chal-lenge today than to make the case of the relevance ofICT for solutions to the various issues associated withClimate Change.

One example, clearly outlined in discussions of theWorld Economic Forum, for example, is the positiveimpact of the shift away from physical goods to thedelivery of digital services. The entertainment industryserves as a model of this shift.

The GIIC recognizes that businesses around theworld are starting to respond as important organizationsare raising awareness on this issue. The Stern Review(October 2006) in the United Kingdom has been the

catalyst for the British industry to make recommenda-tions on climate change. At the UN Internet Gover-nance Forum in November 2007, a major speech raisedthe issue of "Internet and Environment". In January2008, the World Economic Forum discussed the issueof climate change as the most important shift affect-ing business, technology, society, and the global econ-omy. As a result, 41 CEOs of global ICT companiesattending the forum agreed on a preliminary report.

The GIIC also acknowledges the work of interna-tional organizations, such as the World Bank, the Or-ganization for Economic Cooperation and Develop-ment (OECD) and the International Telecommunica-tion Union (ITU). At our forum, we heard leading ex-perts talk about ways to address the ICT aspect ofclimate change, and acknowledged the common chal-lenges.

The reduction of the burden on the environment byICT itself, and the benefits

By using ICT have to be further studied and analyzed,and then better used and understood in order to advanceprogress in this area to the next level.

Advocacy

The messaging of climate change efforts by theICT sector, and the GIIC commissioners, in particular,needs to be clear and concise. Climate change is ofgreat concern to the entire ICT sector. For example,the energy demands of data centers alone threaten tohamper the continued pace of growth of the networkedeconomy. ICT industries, typically as component com-panies, have only begun to consider the messaging ofthese concerns and focus on internal challenges. Theseworthwhile efforts, such as Green Grid, Climate Savers,and Green IT Promotion Council of Japan must bematched with appropriate outreach strategies to be ac-cepted by consumers.

ICT solutions should be more clearly explained tocapitalize on the environmental benefits of the tran-sition to an information society. The replacement ofphysical goods with networked services is perceivedas an economic productivity-boosting influence ratherthan a tool to address climate change. It should berecognized as both.

Policy makers could benefit from the informed andexpert opinions and experience of the private sectoreven as they contemplate the correct policies to addressclimate change. For example, the Federal Trade Com-mission of the United States is considering how bestto regulate the “green” market claims of products. In

GIIC Tokyo Resolution for Powering Green in Future of ICT 155

Japan, the Ministry of Internal Affairs and Communi-cation organized a study group to discuss the role ofICTs for global warming issues last year and publisheda final report on April 10. The study group estimatedthe number of CO2 reduction when ICT is aggressive-ly used, and then concluded that the effective use ofICT in various fields will contribute to the reduction ofCO2. Also, the "Green IT Initiative Meeting" held bythe Ministry of Economy, Trade and Industry invitedCEOs of leading IT companies in December 2007 todiscuss and to agree on the "Green IT Initiative" whichpromotes lower electricity use of ICT products, lowerenergy consumption of society through ICT use, andactivities to promote these goals.

The ICT sector should inform policymakers and thepublic of the expected realistic benefit of further ICTadoption and of the internal efforts to meet our envi-ronmental challenges.

Suggested recommendations are:

Lower the Environmental Impact of ICT

Lowering electricity consumption of ICTICT sector can lower electricity consumption by

identifying and replacing power-hungry components,and adding sustainability to selection criteria for equip-ment and services. Both industry and governmentshould strive to promote innovative technology devel-opment toward next generation low-power IT products.

Responsible Internet Use To Combat SpamCommunication carriers, Internet Service Providers,

and other network operators incur a large cost for ad-ditional energy and other mechanisms to deal with In-ternet spam. For the healthy development of the glob-al Internet, we should pay more attention to assessinghow best to combat Spam in order to reduce the energycost factors and help the environment.

Lower the Impact by using ICT

ICT for Measurement and ComplianceSensor technologies should be promoted for the pur-

pose of capturing and quantifying GHG impact, enforc-ing compliance models, and rewarding good actors fortheir efforts to reduce GHGs and the overall effects ofclimate change.

ICT as Enabler for New Business PracticesBy using ICT as the enabler for new business prac-

tices across the enterprise, it will have a transformation-al effect. This will aid business growth and enhancethe reputation of the company as an environmentally-responsible organization. It is necessary to introduce aframework for an organization/company to be evaluat-ed, by visualizing the ICT contribution to the environ-ment, so that environmental-friendly organizations andactivities can be recognized fairly.

Achieving the Goal

Exchange of InformationThe ICT industry must summarize the studies and

analyses and better exchange the information with allparties. Then, the two aspects, “of ICT” and “by ICT”,can to be well understood by everyone. By doing this,one can communicate a clear message on its role onclimate change to those outside of the industry. Thisactive engagement will demonstrate a commitment onthe part of the industry to seek solutions which reflectpositive business opportunities and good environmentalstewardship.

Development of a RoadmapLeaders of the ICT industry and public sectors, par-

ticularly in emerging markets , must work togetherto develop and implement new roadmaps that defineICT use as a tool for clean business and economicgrowth and competition. While not every economy canleapfrog over old infrastructures to new infrastructures,some infrastructures – such as wireless communica-tions – or energy-saving ICT products and data centersare better positioned to enhance economic growth whilepromoting concepts that minimize the environmentalimpact of 20th century industrial practices.

Market-Based ApproachesTo achieve the goal, market-based approaches should

be favored to reward the integration of ICT into eco-nomic activities, and foster competition and investmentpolicy based on the adoption of practices that reducegreenhouse gas (GHG) and provide other “green” inno-vations and products. We expect government to initi-ate policies to support and stimulate such market-basedapproaches.

156 GIIC Tokyo Resolution for Powering Green in Future of ICT

Early Action NeededViewed from a long-term perspective, the costs of

early action are far less than the costs of delaying ac-tion. Policymakers, businesses and users all need toplay their part to implement the ambitious policy re-forms and practices which will deliver the most cost-effective environmental improvements. As an immed-

iate next step, the GIIC urges the G8 ministers to raiseand discuss the issue of ICT and sustainable develop-ment at the July 2008 G8 Hokkaido Toyako Summit,for the purpose of better understanding the relation-ship between ICT and the environment and this topic’sfuture impact on sustainable development.”



ITU Asia-Pacific Forecast Bullish for ICTIndustry and Broadband

ITU Telecom Asia 2008, held in Bangkok, focusedon new business opportunities to sustain growth in thedynamic ICT industry in the Asia-Pacific region as wellas on the younger generation of users and innovators.

With over two billion telephones, including 1.4 bil-lion mobile subscribers, and 42% of the world’s Inter-net users, Asia is a region of superlatives in the ICT are-na. It is also the world’s largest broadband market withover 39% share of the world’s total at the end of 2007.The theme of the event was “New Generation, NewValues” addressing the demands of a young populationthat is clearly setting the tone for a new generation ofICT developers and development.

Over 170 countries from around the world occupiedthe exhibition center. Business was reported to be briskwith trade visitors and exhibitors meeting on the showfloor as well as national pavilions of China, France,Korea, Japan, Russia, Thailand and the United States.The future development of the telecommunications andICT sector were addressed by Ministers from the regionand beyond at a roundtable discussion. A high-level di-alogue followed with industry and business leaders fo-cusing on investment and the market environment, gov-ernment and industry interests, as well as public/privatepartnerships and future cooperation.

“This week has seen enormous energy focusedon shedding light on the issues which confront thetelecommunications and ICT sector – issues which wesought to explore through the notion of new generation,new values,” ITU Secretary-General Hamadoun Touresaid. “Business opportunities flourished within the ex-hibition and high-level exchanges with ministers. It isevident that win-win public-private partnerships are areality.”

The Minister of ICT Thailand, Mun Patanotai saidhe was delighted that ITU Telecom Asia was held in

Bangkok. “ICT may be seen as the central nervous sys-tem of the new world economy. Over the last decadeICTs have been expanding at a great speed, fosteringeconomic growth and changing the way people work,communicate, entertain, do business and organize theirlives. The Asia-Pacific region is without doubt mov-ing fast in telecommunications services and infrastruc-tures.”

ITU launched its key Telecommunication/ICT Indi-cators Report for the Asia-Pacific region at ITU TELE-COM ASIA 2008, which got under way today inBangkok, Thailand. The Report focuses on broadbandconnectivity as a vehicle for content to drive develop-ment and build a knowledge-based information society.

While some Asia-Pacific economies are world lead-ers in information and communication technologies(ICT) where broadband access is ultra-high speed, af-fordable and close to ubiquitous, in most of the re-gion’s poorer countries Internet access remains limitedand predominantly low-speed. The Report finds evi-dence that ICTs and broadband uptake foster growthand development, but the question remains as to theoptimal speed that should be targeted in view of limitedresources.

Asia-Pacific: a region of superlatives

Asia-Pacific is a region of superlatives when it comesto ICTs. By early 2008, the total number of telephonesubscribers had passed the two billion mark.

The region is home to almost half the world’s fixedtelephone subscribers. It has 42 per cent of the world’sInternet users, and with 1.4 billion mobile cellular sub-scribers, it also has the largest mobile phone marketshare (Fig. 1).


158 ITU Asia-Pacific Forecast Bullish for ICT Industry and Broadband

Source: ITU World Telecommunication/ICT Indicators database

Fig. 1. Distribution of ICTs by world regions, 2007.

By mid-2008, China and India alone had over 600and 280 million mobile cellular subscribers, respective-ly, representing close to a quarter of the world’s total.Average annual mobile growth over the last five yearsis close to 30 per cent, and with mobile penetrationapproaching 40 per cent, almost two out of five inhabi-tants in the region enjoy the benefits of mobile telepho-ny today. Non-voice applications via mobile phonesare increasing rapidly and now account for more thanone quarter of the region’s main operators’ mobile rev-enues. Text messaging – or SMS – is the predomi-nant non-voice, mobile application. Filipinos send astaggering 650 text messages per subscriber per month,the highest in the world. SMS has emerged as a sig-nificant alternative to computer-based e-mail in the re-gion’s low and lower-middle income economies. TheReport finds that other mobile data applications, suchas cash transfers and online purchases are creating newbusiness opportunities in poor countries.

Asia-Pacific is a global broadband leader

The area in which the region really stands out is theuptake of advanced Internet technologies, especiallybroadband Internet access. The Asia-Pacific region isthe world’s largest broadband market with a 39 per centshare of the world’s total at the end of 2007. In terms ofbroadband access, Asia-Pacific has made remarkableprogress in the past few years, with subscriber numbersgrowing almost five-fold in five years: from 27 millionat the beginning of 2003 to 133 million at the start of2008.

In the region’s high-income economies, ubiquitousaccess is progressing through a competitive race toprovide ever faster fixed broadband access. Opera-tors in Hong Kong (China) and Japan have launched

one-Gigabits per second (Gbps) broadband and triple-play services aimed at the residential market, featuringapplications such as Internet telephony and television.The Republic of Korea leads the world in terms of thepercentage of households with fixed broadband access,and no less than five economies in the top ten are fromAsia-Pacific (Fig. 2). The Republic of Korea, HongKong (China), and Japan also lead the world in termsof the proportion of households with fibre optic con-nections, essential for supporting the next generationof ultra-high speed Internet applications.

These high-income economies are also leaders interms of third generation (3G) mobile cellular deploy-ment. Fixed and mobile broadband technologies com-plement each other and users enjoy continuous high-speed Internet access. In Singapore, a ubiquitous In-ternet access plan combining unlimited 8 Megabits persecond (Mbps) fixed broadband, 2 Mbps mobile broad-band and access at some 800 Wi-Fi hotspots is availablefor just USD 35 per month.

At the other extreme, in most of the region’s low andlower-middle income economies, high-speed Internetaccess is limited to urban areas at best, typically ex-pensive, and often not available at all. The regionalbroadband divide is striking, with poor economies hav-ing a close-to-zero broadband penetration, comparedto that of rich economies where one in four persons isa broadband subscriber (Fig. 3).

The gap in available broadband speeds between richand poor countries is as wide as broadband penetra-tion. In Japan, the Republic of Korea and Hong Kong(China), the minimum advertised broadband speed isfaster than the maximum broadband speed in Cambo-dia, Tonga, Laos and Bangladesh.

While in low and lower-middle income economiesmobile phones have become a substitute for the short-age of fixed lines, they are not yet fulfilling the po-

ITU Asia-Pacific Forecast Bullish for ICT Industry and Broadband 159


Fig. 2. Percentage of households with fixed broadband Top ten economies 2007.


Fig. 3. Fixed broadband Internet subscribers per 100 inhabitants, 2007.

tential of broadband access. By the end of 2007, onlyIndonesia, the Maldives, the Philippines and Sri Lankahad commercially deployed WCDMA networks. Theregion’s two largest mobile markets, China and India,have yet to launch mobile broadband. By the end of2007, there were over 120 million mobile broadbandsubscribers in the region (Figure 4), but almost all (97per cent) were in high income economies.

While the region’s high-income economies are push-ing the frontier of broadband bandwidth to a pointwhere applications have yet to catch up, many Asia-Pacific developing economies are bandwidth starved,

inhibiting the development of their information soci-eties.

The ITU Report argues that broadband uptake en-ables a range of socially desirable and valuable onlineservices in areas such as government, education andhealth. The use of broadband technologies can helpovercome many of the basic development challengesfaced by poor countries. The Report provides a numberof examples where broadband connectivity has acted asa catalyst for development. These include the provisionof education through distance learning in the SolomonIslands, the creation of jobs through business incubators

160 ITU Asia-Pacific Forecast Bullish for ICT Industry and Broadband

Source:ITU World Telecommunication/ICT Indicators database

Fig. 4. Mobile cellular broadband subscribers in Asia-Pacific.

for women in China, and the supply of communicationservices for disaster management in Myanmar.

The level of economic development plays a key rolein broadband uptake since substantive investments arenecessary to deploy high-speed infrastructure. How-ever, the Report identifies a number of obstacles thatpolicy-makers must address to overcome the broad-band gap. Governments must recognize its importanceand formulate concrete broadband policies and targets,while providing incentives for achieving them. Broad-band prices could be reduced by encouraging new op-erators to enter the markets. Stimulating competition,liberalizing the building blocks necessary to develop abroadband business, and opening up the way for newtechnologies – including 3G and WiMAX – are impor-tant success factors to ensure higher broadband pene-tration.

Asia-Pacific Telecommunication/ICT Indicators2008

The Asia-Pacific Telecommunication/ICT Indicators2008 Report is an invaluable information tool to informand guide policy-makers, investors, analysts and oth-er observers of the region’s telecommunications land-scape. It contains an extensive overview of key sectordevelopments, and includes a number of recommenda-tions to sustain growth and deepen access to ICTs inthe region.

Besides the analytical section, the Report includes 20regional tables covering key telecommunication/ICTindicators (2006/2007 data), 43 individual countrypages with a five year profile from 2003-2007, and adirectory of telecommunication ministries, regulatorsand operators in the region.



Support for Improving WTO Commitmentsfor Market Access for Services

WTO Director-General Pascal Lamy, in his capacityas Chair of the Doha Development Round Trade Ne-gotiations Committee, organized a minister-level Ser-vices Signalling Conference in Geneva on July 30,2008, of 32 WTO members to “exchange indicationson their own new and improved services commitments,as well as the contributions expected from other mem-bers.” Lamy reported that “participants stressed thecentral importance of the services sector for econom-ic and social development.” Virtually all major sec-tors were covered during the conference. In particular,financial services, telecommunications, transport anda range of professional services were frequently men-tioned. There were also many indications of willing-ness to facilitate access in environmental services, inline with the objectives of the Doha Ministerial Decla-ration.

All modes of supply were regularly mentioned byparticipants. For example, most indicated their readi-ness to improve access conditions for Mode 4. Theneed to clarify, reduce or remove economic needs testsand to act accordingly was stressed. Expressions ofwillingness were given by several participants to closethe gap between applied regimes and existing commit-ments in a number of cases. As well, there was supportfor establishing effective disciplines on domestic regu-lation, in accordance with the timeless of Annex C ofthe Hong Kong Ministerial Declaration.

Earlier in 2008, Lamy spoke at a ceremony celebrat-ing the 10th anniversary of the WTO Agreement on Ba-sic Telecommunications. He said: “in the last 10 yearsInternet use has increased by 1500%. Mobile phonesubscribers have increased 20 fold and world teledensi-ty has moved from below 15% to over 60%. The rapidevolution of the telecommunications sector, both fromregulatory and technological perspective, has broughtabout lasting changes in our economies and societies at

large and is one reason that this sector merits our spe-cial attention today.” “Although the number of com-mitments to open national telecom markets was low atfirst, at present over 100 WTO members have commit-ments to open markets in some or all telecom services,”Lamy concluded.

SERVICES SIGNALLING CONFERENCE,GENEVA, JULY 30, 2008

Report by the Chairman of the Trade NegotiatingCommittee, Pascal Lamy

As WTO Members advanced towards the establish-ment of modalities for Agriculture and NAMA, with aview to moving the DDA negotiations into their finalphase, many stressed the need to gauge progress in theservices request/offer negotiations. Since the revisedservices offers will be submitted only at a later stage,it was agreed to hold a Signalling Conference at Min-isterial level. The Conference provided Members withthe opportunity to exchange indications on their ownnew and improved commitments as well as the contri-butions expected from others. It was understood that,while the signals exchanged were important in mea-suring progress, they would not represent the final out-come of the negotiations. They would instead providecomfort to Members by reflecting real progress in theservices negotiations.

On Saturday, 26 July, the Conference was heldamong the following Members:

Participants stressed the central importance of theservices sector for economic and social developmentand, thus, the need to help promote its future expan-sion through a successful conclusion of these negotia-tions. It was also recognized that, while Members pro-ceeded with services liberalization in their economies,


162 Support for Improving WTO Commitments for Market Access for Services

ArgentinaAustraliaBangladeshBrazilCanadaChileChinaECEC Presidency (France)EgyptHong Kong, China

IndiaIndonesiaJapanKoreaLesothoMalaysiaMauritiusMexicoMoroccoNew ZealandNorway

PakistanPhilippinesSingaporeSouth AfricaSwitzerlandChineseTaipeiThailandTurkeyUnited StatesUruguay

the gap between existing levels of openness and cur-rent commitments continued to widen. Some partic-ipants stressed that a satisfactory outcome of the ser-vices negotiations could be one of the most significantdividends of the DDA, as a development Round.

Participants clearly understood that the signals ex-changed would be subject to a satisfactory conclusionof the DDA. Also, the Conference was without preju-dice to the positions of non-participating Members, nordid it affect their right to benefit from future resultingcommitments on an MFN basis.

As previously agreed, my Report will summarize thesignals exchanged by sectors and modes of supply, butwithout attribution to individual Members.

BUSINESS SERVICES

Business services were frequently referred to duringthe Signalling Conference. Virtually all delegationsmentioned either business services in general or speci-fied one or more of the sub-sectors, in which they areready to expand or improve current commitments. Giv-en the particular nature of business services, often re-quiring the physical presence of individual profession-als, a number of signals included the easing of restric-tions on Mode 4, temporary presence of natural per-sons. Other signals focused on improving or locking-incurrent conditions for supplying services cross-border.Reference was made in this context to back-office op-erations, which extend across many sub-sectors, and tocall-centre services.

The following areas were mentioned in particular:

– Professional services: Legal; accounting; archi-tectural and engineering; integrated engineering;medical and dental; veterinary; and services pro-vided by midwives and nurses.

– Computer and related services– Research and development services– Rental and leasing services

– Other business services: Advertising; market re-search and opinion polling; management consult-ing; technical testing and analysis; services inci-dental to agriculture; services incidental to mining;services incidental to manufacturing; printing andpublishing; photographic; packaging; conventionservices; and further activities such as translationand interpretation, design, or mailing services.

Many envisaged improvements focused especiallyon ’modern services’, such as computer services, re-search and development, and market research services.Services incidental to agriculture and services inciden-tal to mining were frequently mentioned as well.

A few participants also listed a number of individualbusiness services among the areas in which they ex-pected commercially relevant commitments from oth-ers. The particular relevance of cross-border supply(Modes 1 and 2) and presence of natural persons (Mode4) was mentioned in this context.

POSTAL AND COURIER SERVICES

A number of participants indicated their readinessto undertake new commitments in postal and courierservices. In several cases, express delivery serviceswere singled out. Most of the signalled improvementsinvolved commitments on commercial presence withhigher levels of foreign equity participation. In onecase, it was indicated that all foreign equity limitationswould be removed. In another, up to 51% foreign equi-ty would be allowed. A few participants expressed will-ingness to clarify the coverage of their postal monopolyso as to better define the scope of existing commit-ments. In this connection, one delegation also envis-aged undertaking additional commitments related tothe independent regulation of the sector.

TELECOMMUNICATION SERVICES

Many participants were willing to improve existing,or undertake new, commitments across the range ofsub-sectors in both basic and value added services. Fewenvisaged including satellite services in their commit-ments or removing existing limitations. Several partic-ipants indicated that limitations on Mode 3 would beremoved completely, so as to allow up to 100% foreignownership. Others signalled that foreign equity limita-tions would be improved substantially. In one case, itwas indicated that up to 74% foreign ownership would

Support for Improving WTO Commitments for Market Access for Services 163

be permitted instead of 49%, while in another the ceil-ing would be raised to 60%. Some indications werealso given of the removal of all limitations in mode 1;and one participant stated that his government wouldbe willing to commit in full to the Reference Paper onregulatory principles.

Many participants requested new commitments tocover both basic and value added services. Several re-ferred to the elimination or relaxation of foreign equitycaps, for example for fixed line and mobile telephony.One participant stressed that there should be no bind-ings below 51% foreign ownership. The adoption ofthe Reference Paper in full was also requested fromthose that had not yet done so.

AUDIOVISUAL SERVICES

One participant signalled new or improved commit-ments on film projection and production services. Thesame participant also expected deeper commitmentsfrom others on private motion picture production, pro-jection and distribution services; broadcasting services;sound recording services; and promotion and market-ing services. Another expressed general interest in im-proved commitments in audiovisual services.

CONSTRUCTION AND RELATEDENGINEERING SERVICES

Statements concerning construction and related engi-neering services were almost equally divided betweensignals of own improvements and expectations that oth-er Members reciprocate in their revised offers. Virtu-ally all modes were mentioned in this context.

DISTRIBUTION SERVICES

Signals given related to virtually all sub-sectors,from commission agents’ services and retail trade towholesale trade and franchising. There were indica-tions of increased foreign equity participation or newcommitments at high equity levels, up to 100% in cer-tain cases. The importance of liberal conditions forcross-border (electronic) supply of retailing serviceswas also acknowledged. At least one participant in-tends for the first time to schedule commitments in thissector.

Several participants invited others to upgrade theirschedules in this sector, emphasizing the importance ofdistribution services for trade in goods; farm productsand cars were mentioned as cases in point.

PRIVATE EDUCATION SERVICES

A few participants indicated readiness to undertakenew commitments in private education services and toremove a number of existing limitations, which dis-criminate against foreign education providers. Newcommitments were envisaged for private primary, sec-ondary and tertiary education, as well as for language,corporate, and technical and vocational training. In onecase, it was indicated that all limitations on cross-bordersupply and commercial presence for (non-public) high-er education services would be removed. In anoth-er case, the national treatment restrictions for privatehigher and other education would be eliminated.

There were indications from a few participants thatthey would be seeking more commitments in privateeducation services. They called for significantly im-proved market access through the removal or relax-ation of existing restrictions, including those on nation-al treatment.

ENVIRONMENTAL SERVICES

Many indications of improvements were given acrossthe range of environmental services, including: sewageservices; sanitation services; refuse and solid wastedisposal services; waste water management services;soil remediation and clean-up; environmental laborato-ry services; and other services related to air pollutioncontrol and noise abatement. In addition to expandingsectoral coverage, several participants were willing toexpand the modal scope of their commitments, and toreduce or eliminate restrictions such as joint venturerequirements and foreign equity limitations.

Several participants expressed aspirations for newcommitments on all modes of supply across the rangeof environmental services. A specific request was madefor commitments on advisory services under Mode 1.

FINANCIAL SERVICES

In financial services, there were many indications ofnew and improved commitments. These positive sig-nals appear significant, given the importance of finan-cial services in supporting trade in other products andservices.

In banking, many participants were willing to makenew or improved commitments in cross-border supplyand commercial presence. With respect to cross-border


commitments, several participants indicated improve-ments in sub-sectors such as asset management for so-phisticated consumers, advisory services, and securi-ties and underwriting. One participant envisaged re-moving all market access and national treatment limi-tations for existing cross-border commitments.

With respect to commercial presence, several partic-ipants intended to reduce, or remove altogether, restric-tions on the level of foreign equity. Individual partici-pants were also ready, inter alia, to eliminate a deposi-tary requirement for foreign branches, widen the scopefor underwriting and trading of securities, and quadru-ple the number of branches permitted. Another partic-ipant was prepared to bring existing commitments forcommercial presence in this sector up to the level offull commitments.

More generally, several participants indicated theirintention to liberalize a range of sub-sectors, includingderivative products, leasing, asset management, advi-sory services, and transfer of financial information anddata. A few participants intended to expand the cover-age of their financial services commitments to substan-tially all sub-sectors specified in the Annex on FinancialServices. Another was ready to adjust the definitionscontained in his offer to accord with those contained inthe Annex.

In insurance, several participants were prepared tomake new or improved commitments. With respect tocross-border supply, one participant signalled its will-ingness to make overall improvements. Another spec-ified his intention to expand the coverage of insuranceintermediation to include reinsurance brokers in Modes1 and 2.

With respect to insurance supplied through commer-cial presence, one participant signalled the removal ofa joint-venture restriction, while another was willingto remove a prior authorization requirement for com-panies and their branches. Some participants indicatedimprovements of commitments in non-life insuranceand insurance intermediation under Mode 3. Otherswere prepared to upgrade their commitments for insur-ance services under this mode. Another indication ofcommitments was made by one participant in relationto reinsurance.

More generally, some participants indicated their in-tention to liberalize insurance broking and agency ser-vices, and other auxiliary services. One participant sig-nalled the removal of restrictions on non-life insurancepremiums.

Another participant was ready to remove or narrowlimitations at sub-national level, and to commit its cur-

rent domestic ownership framework for financial insti-tutions across all financial services.

Participants frequently expressed their desire for oth-ers to make or improve commitments in financial ser-vices. Some stressed the need for significant progressin this sector. Specific areas where improvements weresought included the reduction of foreign equity lim-itations, and commitments on cross-border provisionof asset management for sophisticated consumers andsecurities-related services.

HEALTH SERVICES

A few participants were willing to undertake newcommitments for hospital and other health care ser-vices, including on physical wellness services whichwould cover traditional Asian medicine and traditionalThai massage. One participant signalled the removalof Mode 3 limitations for health services.

There were indications from a few participants thatthey would be seeking commitments in Modes 3 and4 for private hospital services as well as extensions ofsector coverage to include spa and wellness services,and traditional Chinese medicine.

TOURISM AND TRAVEL-RELATED SERVICES

Tourism, especially hotel and restaurant services, isthe sector that has drawn the highest number of com-mitments in current schedules. Although these are gen-erally liberal for commercial presence, a few partici-pants signalled scope for further improvements in theirrevised offers, including extensions in the geographiccoverage of commitments and elimination of nationaltreatment limitations. Other positive signals concernedthe services provided by travel agencies and tour oper-ators, as well as tour guide services. The same serviceswere identified by at least two participants as priorityareas of export interest. A call was also made for liber-al commitments on hotel-related activities, such as theprovision of management services.

TRANSPORT SERVICES

Many signals were given in transport services, par-ticularly in maritime transport. Like other infrastruc-tural services, transportation is a key determinant for


the competitiveness of other products, especially tradedgoods.

In maritime transport services, several participantssignalled new or improved commitments, including forrental of vessels with crew, maintenance and repair ser-vices, port services, pushing and towing services, mar-itime freight transport services, international passen-ger transport, as well as maritime auxiliary and supportservices. One participant was ready to extend com-mitments on commercial presence under Mode 3(b) ofthe Maritime Model Schedule, covering other formsof commercial presence for the supply of internationalmaritime transport. Another participant signalled newmarket access in terms of commercial presence for sal-vage and refloating services, with a foreign equity ceil-ing of 49%. Other signals referred to the withdrawalof restrictions on the number of licenses in maritimecargo handling services, the complete removal of for-eign equity requirements, and the withdrawal of pref-erences maintained at the sub-national level. An indi-cation was also given by one participant that the scopeof reserved cargoes in its existing schedule would bemore precisely defined.

Many participants expressed their desire to see newand improved commitments in maritime transport. Onedelegation stressed the importance of removing or min-imizing MFN exemptions affecting this sector.

In air transport services, several participants wereready to make improvements in aircraft repair andmaintenance, computer reservation systems, and sell-ing and marketing of air transport services. One partic-ipant signalled an increase in scope of commitments forair passenger and freight transportation, rental of air-craft with crew, and other supporting services. Anotherparticipant envisaged removing MFN exemptions.

In logistics services, several participants intendedto broaden their commitments to include all modes oftransport. Also, several participants sought new orimproved commitments for all modes of transport inlogistics services.

With respect to road transport services, one partici-pant signalled the removal of quantitative restrictions,while another indicated new commitments in this sec-tor. In rail transport, one participant envisaged newcommitments, and one wished to see commitmentsfrom others in space transport services.

Some participants signalled an overall improvementin their commitments related to all forms of transport.One participant intended to withdraw a limitation con-cerning a review mechanism affecting transport ser-vices.

ENERGY SERVICES

Many participants indicated that they would be ex-panding the sectoral and modal coverage of their com-mitments on energy services. In a few cases, this wouldinclude commitments on services incidental to energydistribution, management consulting services, techni-cal testing and analysis services, construction of longdistance pipelines and local pipelines, as well the dis-tribution of petroleum and natural gas. Several indi-cations of improvements on Mode 3, and other modeswere also given. These included the full or partial re-moval of limitations on services incidental to miningand drilling; site preparation work for mining; relatedscientific and technical consulting services; and tech-nical testing and analysis.

Several participants indicated their interest in furthercommitments on energy services, including activitiessuch as mining, drilling, technical testing and analysis,and related scientific and technical consulting services.They also sought more meaningful market access com-mitments, particularly in Mode 3.

CROSS-BORDER SUPPLY (MODES 1 AND 2)

Several participants were ready to improve currentcommitments on cross-border supply either in gener-al terms or with regard to individual sectors, such asaccounting and other professional services, financialservices (especially financial consultancy services andservices destined for sophisticated consumers), and dis-tance learning. One participant expressly referred tothe envisaged removal of residency requirements andsimilar restrictions.

The developmental importance of liberal commit-ments on cross-border trade was noted several times,and the relevant objectives in Annex C of the HongKong Ministerial Declaration (’commitments at exist-ing levels of market access’) were recalled. One par-ticipant referred to the economic importance of busi-ness process outsourcing for developing countries, andstressed the need for ambitious commitments in rele-vant sectors.

COMMERCIAL PRESENCE (MODE 3)

In addition to what was already covered by sector-specific statements, several participants expressly sig-nalled their intention to liberalize market access and/or


national treatment under this mode, including with re-gard to current foreign equity ceilings, joint venturerequirements, restrictions on branching, and residencyrequirements for board members. For example, oneparticipant envisaged the abolition of foreign equityceilings and joint venture requirements for all environ-mental services, while another signalled a similar movein financial services. With the possible exception ofsome sensitive sectors, one participant signalled an in-crease of the generally applicable foreign-equity limi-tation of 51% in the Uruguay Round schedule (60% inthe initial offer) to 70% and even 100% in three sectors.One Member government would be prepared to permitforeign majority ownership subject to approval underrelevant laws. Another participant signalled a rise toover 49 % of his country’s equity caps for foreign banksubsidiaries; various other financial services are ear-marked for increases from 30 to 49%. Reference wasalso made to an ongoing review of a Member’s generalinvestment legislation with a view to cutting red tapeand streamlining existing authorization procedures.

In terms of expectations, several participants soughtthe binding of foreign equity limitations at currently-applied levels, or at least at 51%. The reduction orremoval of economic needs tests was also mentioned.Priority sectors of interest included computer services,telecommunication services, construction, and finan-cial services. One representative called for improvedinvestment conditions for small service suppliers fromdeveloping countries. Other proposed amendmentsrelated to vague entries, including poorly-specifiedpublic-utility exceptions, which affected the clarity ofcurrent commitments.

PRESENCE OF NATURAL PERSONS (MODE 4)

Many participants acknowledged the importance ofMode 4 in the particular context of a ’developmentround’. Signals of possible improvements relatedto virtually all relevant categories, including intra-corporate transferees, business visitors, contractual ser-vice suppliers, and independent professionals. Some ofthe envisaged commitments were de-linked from com-mercial presence as referred to in Annex C of the HongKong Declaration. Several participants also indicatedtheir willingness to extend permitted periods of stay;clarify, reduce or eliminate economic needs tests; re-move definitional uncertainties; and adjust current en-tries to prevailing scheduling conventions. One partic-ipant specified the quota, in terms of minimum num-

ber of persons, that would replace current economicneeds tests. In terms of particular professions, refer-ences were made, inter alia, to various business ser-vices (architectural and engineering services, medicalprofessions, computer services, R&D services, opin-ion polling services, etc.). In addition, many delega-tions referred to the particular categories of installersand maintainers of machinery and industrial equipment.There were also indications that current quota limita-tions would be increased and, in one case, that the ge-ographic coverage of certain existing Mode 4 commit-ments be extended with liberalizing effects. One partic-ipant mentioned that the negotiated inclusion of moresectors in schedules would automatically expand therange of Mode 4 commitments, which normally applyon a horizontal basis.

Not surprisingly, mode 4 was also frequently re-ferred to as an area where contributions were expect-ed from others. Some references were made to sub-sectors of particular interest, including architecture andengineering, medical services, computer and relatedservices, construction, distribution, environmental ser-vices, various tourism-related services, logistics, mar-itime transport and space transport. The general needto improve conditions for business mobility, unrelatedto other modes and without economic needs or labourmarket tests, was stressed in particular. There were alsocalls for the complete removal of numerical ceilings.Moreover, several interventions referred to the impactof domestic regulatory measures, including licensingand qualification requirements, on access opportunitiesunder Mode 4 and, accordingly, the need to agree oneffective disciplines. In this context, participants re-called the mandate in Annex C of the Hong Kong Min-isterial Declaration to develop disciplines on domesticregulation before the end of current negotiations.

CONCLUDING REMARKS OF WTODIRECTOR PASCAL LAMY

“Considering the signals given under each of thesectors and modes of supply, I would like to makea few points regarding my overall impression of thisConference:

– I was impressed by the wide sectoral coverage ofthe signals. Virtually all major sectors were men-tioned. In particular, some infrastructural serviceswere frequently highlighted. Among those arefinancial services, telecommunications, transport


and a range of professional services. I am alsoparticularly pleased by frequent signals to facili-tate access in environmental services, thus heed-ing objectives contained in the Doha MinisterialDeclaration.

– Equally impressive was the modal coverage of sig-nals. All modes were regularly referred to, oftenin different sectoral contexts, but also in their ownright. For example, most participants indicatedtheir readiness to improve access conditions formode 4. In several statements, these signals wereexpressly linked to the development character ofthis Round.

– Several participants acknowledged the need toclarify, reduce or remove economic needs tests,and to act accordingly. These signals were partic-ularly relevant in view of the discretionary natureof such tests.

– I was pleased about several expressions of willing-ness to close the gap between applied regimes andexisting commitments in a number of sectors. Inone case, this was offered across the board. An-other participant intended in most sectors to bindunder the GATS the treatment currently extendedunder FTAs.

– Particularly encouraging were several signals thatinvolved new market opening beyond status quoconditions.

– It also interesting to note that in the aspirationsexpressed by participants, the creation of effectivedisciplines on domestic regulation played an im-portant role. The timelines contained in Annexof the Hong Kong Ministerial Declaration werereiterated.

– Of course, participants had prepared their wish-list prior to the meeting and before they heardsignals from each other. However, I noted withinterest that some of the wishes had already been,or were on their way to being, fulfilled. This wasalso indicated by frequent references to collectiverequests in the signals given.

– I was also pleased about several expressions ofsatisfaction with the progress achieved in the im-plementation of the modalities for the treatment ofleast-developed countries.

– Finally, I would like to reiterate, as noted at theoutset, that this exercise does not represent thefinal outcome of the services negotiations. Thereis still a considerable way to go.”