8/8/2019 Globalization and International Trade - Mario Apostolov
1/21
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
8/8/2019 Globalization and International Trade - Mario Apostolov
2/21
In this presentation:
Globalization and its challenges
UNECE and e-business standards
success story in Eastern Europe
8/8/2019 Globalization and International Trade - Mario Apostolov
3/21
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
8/8/2019 Globalization and International Trade - Mario Apostolov
4/21
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
8/8/2019 Globalization and International Trade - Mario Apostolov
5/21
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
8/8/2019 Globalization and International Trade - Mario Apostolov
6/21
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%
8/8/2019 Globalization and International Trade - Mario Apostolov
7/21
8/8/2019 Globalization and International Trade - Mario Apostolov
8/21
8/8/2019 Globalization and International Trade - Mario Apostolov
9/21
8/8/2019 Globalization and International Trade - Mario Apostolov
10/21
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
8/8/2019 Globalization and International Trade - Mario Apostolov
11/21
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)
8/8/2019 Globalization and International Trade - Mario Apostolov
12/21
Potential first step: gather all documents and required
procedures in one place: the German experience:Formular Server: www.zoll.de
8/8/2019 Globalization and International Trade - Mario Apostolov
13/21
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.
8/8/2019 Globalization and International Trade - Mario Apostolov
14/21
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
8/8/2019 Globalization and International Trade - Mario Apostolov
15/21
Data harmonization
___UN/TDED___
WCO Data Model
Business
Process
Analysis
User
assessment
Data
harmonization
Data Element
Questionnaire
Standard
Data Set
8/8/2019 Globalization and International Trade - Mario Apostolov
16/21
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).
8/8/2019 Globalization and International Trade - Mario Apostolov
17/21
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
8/8/2019 Globalization and International Trade - Mario Apostolov
18/21
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
8/8/2019 Globalization and International Trade - Mario Apostolov
19/21
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
8/8/2019 Globalization and International Trade - Mario Apostolov
20/21
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
8/8/2019 Globalization and International Trade - Mario Apostolov
21/21
Thank you !
Mario Apostolov
Regional Adviser, UNECE Trade
tel.: +41 22 9171134, fax: +41 22 9170037, e-mail: