The Business Contribution to Development and Safe Trade

UN Economic Commission for EuropeSecond International Forum on Trade Facilitation, 15 May 2003

Patrick de SmedtChairman, Microsoft EMEA

Overview

“No nation was ever

ruined by trade.”Benjamin Franklin

The twin pillars of business support: Developing markets Creating a safe trading environment

Developing Markets – Overview

Types of industry support:

Foreign direct investment Skills gap

Solution development

Open standards

Developing Markets – Direct investment

More than just money at stake OECD has identified many valuable spill-over effects A few recent examples:

Renault – €230 million in Russia

Bayer – €3 billion in China

Microsoft – €80 million in China– European Microsoft Innovation Centre– Microsoft Research Cambridge

Partner ecosystem

Developing markets – Addressing the skills gap

Skills gap impairs growth worldwide Career Space: public/private initiative to develop

academic guidelines WEF Digital Divide Task Force NEPAD

Developing markets – Support for open standards

XML, web services Streamlining customs operations UNeDocs and Microsoft technology support Opportunity for SMEs and developing countries

Developing Markets – Enabling solutions

Technology enables market development Thaigem.com – Thai gem sales Everythingaboutwater.com – Indian water sales Dubai – eMirsal Customs On-line Service Czech customs project

Entirely new private network 80% of customs declarations electronic First Eastern European link to NCTS

Trade safety – Overview

Key business issues for improved trade safety:

Supply chain security management

Export control regimes

Piracy and counterfeiting

Safe and trustworthy computing

Trade safety – Piracy and counterfeiting

Pirates and counterfeiters support many types of illegal activities

IP theft – illegal software rates: 36% worldwide 34% in EU 63% in Eastern Europe

Industry action plan: Public awareness campaigns Education Programs Joint efforts with Government Regulators

Trade safety – Safe computing

Safe trading requires safe and secure computing The Microsoft response

“Trustworthy Computing is computing that is as available, reliable and secure as electricity, water services and telephony”

Four pillars of TWC: reliability, security, privacy and business integrity Universal Postal Union Project: secure digital signatures leading to safer

trade

Great security will increase trade safety and expand consumer confidence in trade and development

Trade safety – Supply chain security

Supply chain security critical in the modern trans-border economy

New technologies help ‘Smart’ shipping containers Shipping content tracking software

Public/private partnerships improve security and customs efficiencies

Trade safety – Export Control Regimes

The realities of a post 9/11 world New rules should be multilateral and transparent Remember history – the flawed attempt to control

encryption in the 1990s Working together to find the best balance:

Security vs. efficient trading

Conclusions

Industry has an important role Developing markets improves local conditions and

expands trade Trade safety is vital to the continued trust and support

of the free trade system More than just trade – all these efforts help bring

developing countries into the global economy

Thank You