Challenges and Implementation of the Knowledge Economy in the Slovak Republic

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Challenges and Implementation Challenges and Implementation of the Knowledge Economy of the Knowledge Economy

in the Slovak Republicin the Slovak Republic

Dušan FaktorDušan FaktorState Secretary

Ministry of Transport, Posts and Telecommunication

Knowledge Economy Forum, Paris, February 20, 2002Knowledge Economy Forum, Paris, February 20, 2002

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Basic Macroeconomic and Regulatory Basic Macroeconomic and Regulatory EnvironmentEnvironmentBasic Macroeconomic InformationBasic Macroeconomic Information

Indicator 2001 Territory (km2) 49 053 Population 5 379 500 Number of Households 1 665 536 GDP (mld Euro) 22.4* GDP Growth (%) +3.2* GDP per capita (Euro) 4150 Annual Inflation Rate (%) 7.5*

*estimated


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Basic Macroeconomic and Regulatory Basic Macroeconomic and Regulatory EnvironmentEnvironment

1998 – Macroeconomic instability and international isolation1998 – Macroeconomic instability and international isolation 1999 – Stabilisation measures and renewed integration process1999 – Stabilisation measures and renewed integration process 2000 – Restored macrostability and OECD membership (Slovakia – 2000 – Restored macrostability and OECD membership (Slovakia –

30th member of OECD – December 2000)30th member of OECD – December 2000) 2001 – Sustainable growth and rapid progress in EU and NATO 2001 – Sustainable growth and rapid progress in EU and NATO

integration (22 closed chapters)integration (22 closed chapters) 2001 – Banking sector fully consolidated and recapitalised, over 90% 2001 – Banking sector fully consolidated and recapitalised, over 90%

privately ownedprivately owned Reduction of public sector expendituresReduction of public sector expenditures

Macroeconomic EnvironmentMacroeconomic Environment


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Membership in NATOMembership in NATO

Further progress in EU integrationFurther progress in EU integration

Sustaining Macroeconomic StabilitySustaining Macroeconomic Stability

Structural Reform and PrivatisationStructural Reform and Privatisation

Government PrioritiesGovernment Priorities


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Basic Macroeconomic and Regulatory Basic Macroeconomic and Regulatory EnvironmentEnvironmentPriority Objectives for building Information Society in SlovakiaPriority Objectives for building Information Society in Slovakia

Participate in the forming knowledge-based and digital economyParticipate in the forming knowledge-based and digital economy

Ensure all citizens of Slovakia to stand up to competition in the knowledge-based and Ensure all citizens of Slovakia to stand up to competition in the knowledge-based and digital economy at the global leveldigital economy at the global level

Exploit the innovative potential of ICT at the level that guarantees the competitiveness Exploit the innovative potential of ICT at the level that guarantees the competitiveness in global economy (by removing barriers for e-commerce)in global economy (by removing barriers for e-commerce)

Alleviate citizens´ access to public services as well as promoting online interaction Alleviate citizens´ access to public services as well as promoting online interaction between citizens and government (eGovernment)between citizens and government (eGovernment)

Create opportunities for development of all forms of education which enables the Create opportunities for development of all forms of education which enables the integration of the Slovak Republic and its citizens into the global information societyintegration of the Slovak Republic and its citizens into the global information society

Harmonise information society related activities with the activities of European Union, Harmonise information society related activities with the activities of European Union, mainly the promotion of Action Plan mainly the promotion of Action Plan eeEurope+Europe+


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Telecommunication Policy for 2002 – 2004Telecommunication Policy for 2002 – 2004(Resolution No. 440, June 14, 2000)(Resolution No. 440, June 14, 2000)

Policy of Information Society DevelopmentPolicy of Information Society Development (Resolution No. 552, June 13, 2001)(Resolution No. 552, June 13, 2001)

Policy and Regulatory EnvironmentPolicy and Regulatory Environment


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Basic Macroeconomic and Regulatory Basic Macroeconomic and Regulatory EnvironmentEnvironmentState Information System Act Passed in 1995, transformation into several bills

expected in 2002

Telecommunication Act Fully liberalised environment in 2003; new, independent regulatory Office of Telecommunications

Passed in 2000, amendments under preparation

Personal Data Protection Act Passed in 1998; amendments now in public discussion, ready for submission to the Government

Freedom of Information Act Passed in 2000

Protection of Classified Information Act

Passed in 1996; amendments passed in 2001; adjusting to NATO-EU legislation

Digital Signature legislation Submitted to Parliament

E-Commerce legislation Under preparation

Others Copyright issues, intellectual property, etc.


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700

236

1 300

194

1 500

356

1 300

206

2 200

514

389300

2 031

-200

570

-300

200

700

1200

1700

2200

2700

3200


FDI + External Debt ComparisonFDI + External Debt Comparison

Source: National Bank of SlovakiaSource: National Bank of Slovakia

FDI InflowFDI Inflow

External debt increaseExternal debt increase

In million USD


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Basic Macroeconomic and Regulatory Basic Macroeconomic and Regulatory EnvironmentEnvironment FDI – Top PriorityFDI – Top Priority

Source: National Bank of SlovakiaSource: National Bank of Slovakia

ACT ON INVESTMENT INCENTIVESACT ON INVESTMENT INCENTIVES Tax holidays – 10 yearsTax holidays – 10 years Contribution up to 4000 EUR per employee p.a.Contribution up to 4000 EUR per employee p.a. Trashold investment project 5 mil EURTrashold investment project 5 mil EUR

ACT ON INDUSTRIAL PARKSACT ON INDUSTRIAL PARKS Contribution up to 70% of infrastructure costsContribution up to 70% of infrastructure costs


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SPP (gas utility) – Completion expected in February 2002SPP (gas utility) – Completion expected in February 2002

Transpetrol (oil pipeline) - Completion expected in December 2001Transpetrol (oil pipeline) - Completion expected in December 2001

Electricity Distribution Companies - Completion expected in April Electricity Distribution Companies - Completion expected in April

20022002

Slovenske elektrarne (electric utility) – to be privatised in 2002Slovenske elektrarne (electric utility) – to be privatised in 2002

Privatisation of UtilitiesPrivatisation of Utilities


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University12%

Secondary79%

Basic9%

Education and Social CapitalEducation and Social Capital

Education - StructureEducation - Structure

Source: Slovak Statistical OfficeSource: Slovak Statistical OfficeKnowledge Economy Forum, Paris, February 20, 2002Knowledge Economy Forum, Paris, February 20, 2002

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Access to Knowledge and Information – Main ProjectsAccess to Knowledge and Information – Main Projects

INFOVEKINFOVEK (INFO-AGE) - provides an access to Internet to all the (INFO-AGE) - provides an access to Internet to all the elementary (age 6-14, approx. 2500) and secondary (age 14-18, elementary (age 6-14, approx. 2500) and secondary (age 14-18, approx. 900) schools by the end of 2005 together with building approx. 900) schools by the end of 2005 together with building the multimedia materials, digital content for curriculum etc.; 20% the multimedia materials, digital content for curriculum etc.; 20% by the end of 2001, total cost expected: $50-67 mil.by the end of 2001, total cost expected: $50-67 mil.

SANETSANET – Slovak Academic NETwork – connects all the universities – Slovak Academic NETwork – connects all the universities (total number of universities – 23), cooperation in GEANT project, (total number of universities – 23), cooperation in GEANT project, next year an upgrade to high speed network is expected (1 next year an upgrade to high speed network is expected (1 Gbps); the goal is to provide a high speed internet access for Gbps); the goal is to provide a high speed internet access for science and researchscience and research


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Project INFOVEK – 4 main principlesProject INFOVEK – 4 main principles

1) Equip all schools in Slovakia with computers and connection to 1) Equip all schools in Slovakia with computers and connection to Internet Internet (building hardware infrastructure; 800 schools in 2002)(building hardware infrastructure; 800 schools in 2002)

2) Train teachers to integrate ICT in modern teaching and learning 2) Train teachers to integrate ICT in modern teaching and learning processesprocesses(training programs for teachers, management, teacher universities)(training programs for teachers, management, teacher universities)

3) Develop new educational contents3) Develop new educational contents(building digital literacy, www.infovek.sk)(building digital literacy, www.infovek.sk)

4) Promote digital literacy in local communities4) Promote digital literacy in local communities(schools as local Internet centres)(schools as local Internet centres)


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14,4% 14,6% 13,1% 12,8% 12,5%15,6%

19,2% 17,9% 17,4%

0%

5%

10%

15%

20%

Education and Social CapitalEducation and Social CapitalUnemployment Remains A Problem ...Unemployment Remains A Problem ...

... but creates opportunities as well... but creates opportunities as well

Knowledge Economy Forum, Paris, February 20, 2002Knowledge Economy Forum, Paris, February 20, 2002 Source: National Source: National Labour OfficeLabour Office

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3 152 3 195 3 231 3 266 3 300 3 332 3 361 3 390

3 000

3 100

3 200

3 300

3 400

Education and Social CapitalEducation and Social CapitalNumber of Inhabitants in a Productive AgeNumber of Inhabitants in a Productive Age

Knowledge Economy Forum, Paris, February 20, 2002Knowledge Economy Forum, Paris, February 20, 2002 Source: Source: Slovak Statistical OfficeSlovak Statistical Office

in thousandsin thousands

16

33

2014

4

23

32

517512

506

482

444

462

4 0 0

Education and Social CapitalEducation and Social CapitalUnemployment and Structural ReformsUnemployment and Structural Reforms

Knowledge Economy Forum, Paris, February 20, 2002Knowledge Economy Forum, Paris, February 20, 2002 Source: Source: Slovak Statistical OfficeSlovak Statistical Office

Industry PerformanceIndustry Performance

Number of employees (in thousands)

Profit before tax (in billion SKK)

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ICT InfrastructureICT Infrastructure

Development of Telecommunication ServicesDevelopment of Telecommunication Services

The telecom. network market liberalised since 1998 (excl. basic The telecom. network market liberalised since 1998 (excl. basic voice service)voice service)

1 incumbent operator (Slovak Telecom)1 incumbent operator (Slovak Telecom) 2 mobile operators (GSM)2 mobile operators (GSM) 3 FWA licences3 FWA licences cca 60 Internet providerscca 60 Internet providers cca 20 - Voice over IPcca 20 - Voice over IP 2 national paging networks (RDS and POCSAG)2 national paging networks (RDS and POCSAG) 1 national and 1 regional trunking network (430 MHz)1 national and 1 regional trunking network (430 MHz) VSAT services, data services, ...VSAT services, data services, ...


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Penetration (Fixed Telephone Lines)Penetration (Fixed Telephone Lines)

28,8

16,8718,75

20,8523,22

25,88

28,5430,66 31,43

0

5

10

15

20

25

30

35

40

1993 1994 1995 1996 1997 1998 1999 2000 2001


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Number of Fixed Telephone Lines per 100 HouseholdsNumber of Fixed Telephone Lines per 100 Households

37,842,2

49,257

61 61,1 63,4 64,8 59,7

0

10

20

30

40

50

60

70

%

1993 1994 1995 1996 1997 1998 1999 2000 2001


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Penetration – Mobile TelephonyPenetration – Mobile Telephony

0,50 3,458,77 12,30

20,54

39,70

0

10

20

30

40

50

%

1997 1998 1999 2000 20011996

%


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InternetInternet

Number of Internet domestic users (6/2001)Number of Internet domestic users (6/2001)

103,000103,000

Total number of home PC´s per 100 inh.Total number of home PC´s per 100 inh. 3.33.3

Total number of business PC´s per 100 inh.Total number of business PC´s per 100 inh. 1010

Total number of PC´s per 100 inh.Total number of PC´s per 100 inh. 13.313.3

Number of addresses under country domainNumber of addresses under country domain ( (11/200011/2000)) 56,31556,315

Number of Internet hostsNumber of Internet hosts ( (12/199912/1999)) 39,77439,774


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Internet Users and Host ComputersInternet Users and Host Computers

2206

4

3977

4

5643

4

1892

71

580000510000

320000150000

0

200000

400000

600000

800000

Řada1 Řada2Internet HOSTS Internet Users1999 2000 20011998


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Access to Internet (% of Users)Access to Internet (% of Users)

51

3423 19

8

0102030405060

workinternet cafe

home school mobilephone

% o

f all

user

s


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Cable TVCable TV

18,123,7

28,431,8 34,6

37,743

0,0

10,0

20,0

30,0

40,0

50,0

%of

hou

seho

lds

conn

ecte

d to

CA

TV

1995 1996 1997 1998 1999 2000 2001


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Access to Knowledge and Information – Government ProjectsAccess to Knowledge and Information – Government Projects

GOVNETGOVNET – GOVernment NETwork – extending the existing infrastructure – GOVernment NETwork – extending the existing infrastructure between central state government institutions (approx. 40) to the between central state government institutions (approx. 40) to the regions (8) and districts (79); the main state infrastructure for regions (8) and districts (79); the main state infrastructure for information systems of public administration, e-Government delivery, information systems of public administration, e-Government delivery, basis for kiosks, libraries, etc.; cooperation between state and local basis for kiosks, libraries, etc.; cooperation between state and local authorities necessary ($40 mil., backbone 622 Mbps – 1 Gbp)authorities necessary ($40 mil., backbone 622 Mbps – 1 Gbp)

DIGITAL LIBRARIESDIGITAL LIBRARIES – information and communication system for – information and communication system for libraries and transformation to digital content, providing a public libraries and transformation to digital content, providing a public access points to the Internetaccess points to the Internet


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Thank You !Thank You !

www.government.gov.skwww.government.gov.skwww.telecom.gov.skwww.telecom.gov.sk

www.education.gov.skwww.education.gov.sk


Challenges and Implementation of the Knowledge Economy in the Slovak Republic

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