APEC ECONOMIC LEADERS' DECLARATION

Shanghai, China
21 October 2001

Appendix 2

e-APEC Strategy

Executive Summary

At the Brunei APEC Summit the APEC Leaders launched an Action Agenda for the New Economy to demonstrate our resolve to work to create a digital society. We directed our Ministers to develop and expand the agenda to enable all APEC economies to maximize the benefits of the emerging New Economy.

The e-APEC Task Force was established by our officials to coordinate APEC initiatives to develop and expand the Action Agenda for the New Economy. To fulfill this mandate, the e-APEC Task Force has developed a strategy that identifies the necessary policy environment and specifies appropriate goals and actions, drawing upon the existing efforts and on-going work within APEC.

The e-APEC Strategy we commended develops a forward-looking, long term and action-oriented plan under three pillars:

One of the main drivers of innovation, technology uptake and associated productivity gains has been the increased openness of markets, which has encouraged global trade and investment as well as the diffusion of ideas and knowledge.

We urge economies to implement appropriate policies and actions to promote sustainable growth. These include: a sound macroeconomic policy framework, sustained structural reform, an effective competition regime, good financial and corporate governance, efficient venture capital markets, a sound legal framework for intellectual property, improved risk management, transparent decision making, robust institutional frameworks, flexible labor markets, and targeted social policies. In their absence, developments in the New Economy will raise the cost to governments of not getting such economic fundamentals right.

We encourage economies to construct a policy environment conducive to competitive investment and the widespread uptake of beneficial technologies. This requires:

- A legal and regulatory framework that provides the essential underpinning for business investment growth and consumer confidence;

- A competitive and robust network infrastructure that enables the advanced application of technology in modern business methods and enhanced societal transactions; and

- A competitive market for the "Value Chain" services that support the effective initiation and completion of e-commerce transactions.

Policies and actions necessary to achieve these goals include: on-line transaction laws; continuing work on electronic authentication and signatures, the promotion of information security, personal data protection and consumer trust, balanced policies increasing access to digital information, and the encouragement of standards development and conformance. Building telecommunications infrastructure and technology to harness the benefits of the New Economy requires policies and actions that target basic infrastructure and technology requirements. We call for the promotion of competitive, affordable and non-restrictive access for all and the development of reliable, fast and affordable non-IT services and distribution channels.

We urge economies to take action to improve human capacity building and promote entrepreneurship. It is vital to enhance human capacity building to establish a winning position in the New Economy. Entrepreneurship is fundamental to generating new ideas and developing new business opportunities. We encourage economies to develop innovation-oriented policies and promote the participation of SMEs in New Economy activities.

ICT has enormous potential to assist economies in achieving specific economic development goals. ICT's strength lies not only in the technology itself but also in ICT's ability to improve communication and enhance the exchange of information.

As such, high priority should be given to: effective education and training services, fostering entrepreneurship and SMEs, strengthening technology cooperation and information exchange, enhancing user application of ICT and hastening closure of the digital divide.

We encourage economies to participate actively and contribute to concrete steps that will build on the action agenda of the e-APEC Strategy. In this regard, we instruct our Ministers and Senior Officials to oversee the process of deployment of the Strategy. We call on all APEC fora and mechanisms to cooperate and participate in the implementation of the Strategy.

In spite of the diversity and different developmental stages among the economies we believe that, with the efforts of all the APEC economies, the e-APEC vision will be turned into reality. This will spread the benefits of the New Economy, and revitalize economic development beyond the region.

To maximize the benefits of the New Economy requires appropriate economic policies, good governance, transparent decision making and robust institutional frameworks. In fact, developments in the New Economy raise the cost to governments of not getting such economic fundamentals right. One of the main drivers of innovation, technology uptake and associated productivity gains has been the increased openness of markets that has encouraged not only global trade and investment flows, but also the diffusion of ideas and knowledge.

The New Economy contains four key elements as defined in the APEC Economic Committee's 2000 report: an effective innovation system, human resource development, an efficient ICT infrastructure as well as a business environment supportive of enterprise and innovation. The OECD report - New Economy: beyond the hype - showed that a policy mix that strengthens economic and social fundamentals, facilitates diffusion of ICT and fosters innovation, investment in human capital and firm creation, is likely to bear the most fruit over the longer term.

The policy settings and actions necessary to maximize sustainable growth available from the New Economy include on-going structural reform, a sound macroeconomic policy framework, on-going regulatory reform, an effective competition regime, good financial and corporate governance, efficient venture capital markets, a sound legal framework for intellectual property and improved risk management.

Sound macroeconomic policies are as necessary to support and sustain "New Economy" activity as they are for more traditional economic endeavors. The potential for electronic transactions to cross multiple geographic boundaries and tax jurisdictions reinforces the importance in macroeconomic settings of tax neutrality whereby electronic transactions are treated no worse than traditional transactions and ensures there is no disincentive to trade and conduct business electronically.

Regarding customs tariffs, in 1998, the WTO recognized the importance of electronic trade and WTO members agreed to set up a work program and endorsed a moratorium on customs duties applied to transmissions over the internet. No precedence exists in the WTO for placing tariffs on electronic transmissions including telephone calls, facsimiles or data transmissions.

• To create a sustainable economic growth environment with fiscal discipline and low inflation.

• APEC Finance Ministers should continue their policy dialogue on key macroeconomic developments and policy responses, recognizing the importance of on-going structural reform for continued macroeconomic stability;

• APEC members, through the Finance Ministers' process, should ensure that any taxation of internet services or electronic commerce is clear, consistent, neutral and non-discriminatory;

• Confirm the present WTO customs duty moratorium on electronic transmissions; and

• Commit to participate actively in WTO work on e-commerce.

The overriding aim of structural reform is to provide a flexible economic structure capable of taking advantage of emerging opportunities in the New Economy. Macroeconomic policies are important in providing a stable environment for growth, but structural reforms directly drive productivity improvements, and at the same time make important contributions to macroeconomic stability. The concept of structural reform broadly includes all microeconomic reforms, and therefore encompasses the issues set out in Sections II.C to II.H below. However, elements that stand out are trade and investment liberalization, which acts as a catalyst for further reform, and labor market reform that is important for sustaining employment growth.

• To stimulate higher productivity, including through trade and investment liberalization;

• To facilitate the entry and exit into the economy for firms and workers;

• To maximize efficiency-enhancing benefits from the use of ICT by allowing for greater flexibility in the allocation of labor and capital; and

• To promote more equitable sharing of the benefits of growth.

• Facilitate structural adjustment by economies by promoting trade, e-commerce and investment liberalization, and the progressive removal of subsidies and support programs in line with WTO agreements;

- Continue efforts to improve the IAP process and to enhance WTO-related capacity building efforts.

• Strengthen social safety activity in APEC and encourage APEC governments to ensure that labor market institutions and social policies provide the support and incentives needed to encourage mobility and assist workers to find new jobs and retrain.

The objective of regulatory reform is to guide market behavior without undermining the incentives that yield private sector transformation of activities leading to productivity growth. An appropriate regulatory and legal environment will facilitate the expansion of e-commerce and new e-services as a profitable way of doing business. Member economies should work with all stakeholders to accelerate regulatory reforms. Continuing progress in opening economies to international trade and capital flows is essential for economic growth as is awareness of the need to adopt rules and practices to a constantly changing global environment.

• To speed up reforms which encourage efficient and well-functioning product, labor and capital markets and supportive institutional frameworks.

• Encourage the on-going review of existing legal and regulatory frameworks and development of road maps by which regulatory agencies and industry can progress to early adoption of transparent regulatory systems using best practices, international standards and governance practices;

• Support and encourage joint government/industry capacity building programs to improve regulatory standards, transparency and governance practices; and

• Open public utilities to competition and privatization.

- Support the work of the APEC Privatization Forum as a way of sharing experience and expertise on privatization, including governance and the regulation of state enterprises.

Well functioning institutions are essential in periods of technological change and also contribute to macroeconomic stability. Greater transparency, particularly of listed firms' information and performance together with greater investor protection, would increase the availability of capital to develop the new economic environment.

• To establish deep financial markets operating with sound prudential supervision of both the markets and individual financial institutions so as to protect depositors, investors and insurance policy holders;

• To improve domestic and international financial architecture in ways that allow financial markets to operate transparently and efficiently and which respect key commercial principles;

• To improve corporate governance; and

• To ensure that appropriate regulations are implemented to address developments in the New Economy.

APEC member economies, through the Finance Ministers' Process, should continue policy initiatives on financial issues as follows:

• Recognize the need to improve corporate governance;

- Continue APEC's work on corporate governance, including on insolvency law reform and financial disclosure.

• Share APEC experience and expertise and cooperate to build capacity in APEC members to establish and implement effective systems for supervising financial institutions which provide financial regulators with operational independence, adequate resourcing and sufficient skills to undertake their supervisory functions along with a sound legal framework and clearly defined regulatory standards;

- Promote APEC-wide adoption of international best practice principles in supervising financial institutions and markets including:

: the Basle Committee's Core Principles for Effective Banking Supervision (1997);

: IOSCO's Statement of Objectives and Principles of Securities Regulation (1998); and

: the International Association of Insurance Supervisor's Insurance Core Principles (2000).

• Strengthen banking and financial regulations to world best standards including:

- Continue APEC's efforts to promote strengthened surveillance measures; encourage APEC participation in the IMF/World Bank Financial Sector Assessment Program and Reports on Observance of Standards and Codes;

- Regularize ABAC's survey of financial institution views on APEC reform efforts to help APEC economies to focus on issues to be covered in their ongoing financial reform agenda;

- Develop the APEC Voluntary Action Plan aimed at encouraging freer and more stable capital flows;

- Implement the recommendations from the Third Pension Fund Forum, particularly on education, funds management and good governance;

- Study the completed set of recommendations from APEC economies' experiences in managing bank failures; and

- Build on APEC's success in areas such as training banking and securities supervisors and regulators, and the policy dialogues on key standards pursuant to Part 2 of the Voluntary Action Plan initiative.

• Work to ensure that regulators have robust processes consistent with key international financial policy standards for licensing financial institutions including assessing ownership structure, board membership, senior management, capital adequacy requirements and powers to collect prudential data from institutions; and

- Implement the recommendations of the APEC Finance Ministers' initiative on the provision of training and technical assistance for fighting financial crime in regulatory sectors;

- Improve corporate governance including encouraging the implementation of the recommendations of the Better Company Accounting and Financial Reporting in APEC report.

• Ensure regulators respond effectively to the New Economy that has empowered individual investors with the necessary fast and efficient capacity to trade securities.

- Develop APEC efforts to build skills among financial and insurance regulators in New Economy investment issues such as the Initial Public Offering process, accounting and financial reporting, on-line trading and preserving investor confidence;

- Foster further work by the APEC Working Group on Electronic Financial Transaction Systems (E-FITS) on issues related to electronic financial transactions.

Competition brings pressures to enhance efficiency and pursue new ways to do business especially through the adoption of new technologies. Effective competition policy frameworks lower barriers to international trade and investment and contribute to economic growth and productivity. Improving the capacity of business and consumers to access local information and telecommunications infrastructure will enhance the uptake of ICT as well as ensure equality of access.

• To increase efficiency and social welfare through a competitive market structure and the expanded use of ICT;

• To ensure that the benefits achieved from trade liberalization are not undermined by the lack of effectively implemented competition principles/policies;

• To enhance trade through consistent competition laws/policies and their enforceability in cross border transactions; and

• To prevent erosion of the competitive position of developing APEC economies in the global economy by facilitating access to ICT and enhancing technical and capacity building initiatives.

• Reduce barriers to competition and maintain an open policy stance for international trade and investment so as to reduce the costs of hardware, software and services, improve international standards and promote e-commerce;

- Continue APEC's dialogue on the establishment of effective pro-competitive policies and institutions to provide a strong disincentive to anti-competitive conduct;

- Support TEL's work to promote competition in regulatory structures, interconnection, internet development and related issues;

- Implement the APEC Principles to Enhance Competition Policy and Regulatory Reform; and

- Support the APEC Principles of Interconnection and the APEC Principles on International Charging Arrangements for Internet Services.

• Instigate APEC research, dialogue and cooperation on anti-competitive conduct between APEC jurisdictions, including via the internet;

- Encourage interaction between competition/consumer protection agencies on anti-competitive practices be they public or private in origin.

• Build upon the information provided in the 'Summary Report on the Competition Policy and Law Database' which includes information on all APEC member economies' competition policies.

Without a broad venture capital market, entry of new innovative firms will be impeded. Regulatory systems that restrict traditional types of investors such as pension funds and insurance companies from investing in venture capital and other equity markets retard the development of such markets.

• To eliminate factors which inappropriately impede risk-taking by financial or investing institutions and other sources of venture capital;

• To facilitate the formation of businesses and the exit of firms;

• To establish a broad venture capital structure by deepening and diversifying capital markets; and

• To create a culture of enterprise and innovation which promotes growth in businesses and technologies.

• Encourage reform of those regulations and fiscal provisions that inhibit the development of venture and high-risk capital markets and limit the supply of capital for early stage businesses and innovative undertakings;

- Encourage individual governments to consider recommendations in ABAC's 2001 Report to Leaders to establish second boards (to stimulate SMEs and venture capital), develop domestic bond markets, develop independent and credible rating agencies, encourage the growth of derivatives and hedging mechanisms and to support new international financing conventions, such as the draft Unidroit Convention on Financing Mobile Equipment.

• Consider APEC research to measure the performance of the regional venture capital industry; and

• Foster the development of venture capitalists' entrepreneurial skills and fund managers' investment skills.

Digital technology presents unique challenges in terms of how creators of that information are protected. The growth of e-commerce requires development of a globally accepted and effective intellectual property regime that strikes the proper balance between protection for creative works on the one hand, and the preservation of access to information on the other.

• To establish legal frameworks to promote creative endeavor and encourage on-line activity and the growth of the New Economy through addressing the challenges for intellectual property rights posed by the rapid development of new technologies;

• To ensure intellectual property rights (IPR) systems maintain and promote a balance between the different rights of owners and between the interests of copyright owners and users;

• To provide incentives for innovation whilst providing for the community's interest in reasonable access to information; and

• To establish an appropriate balance among all stakeholders, including content providers and ISPs, in terms of the liabilities for infringing intellectual property on-line.

• Pursue APEC cooperation on IPR, primarily through the ongoing work program of the APEC Intellectual Property Rights Experts Group, to reduce uncertainty and contribute to innovation for the sound development of e-commerce through:

- Encouraging APEC-wide implementation of the provisions of the 1996 WIPO Copyright Treaty and the WIPO Performance and Phonograms Treaty, Trade Related Aspects of Intellectual Property Rights (TRIPS), the Berne Convention and the Rome Convention;

- Encouraging APEC-wide adoption of the standards and guidelines adopted in WIPO resolutions; and

- Reporting in the relevant section of each economy's IAP on domestic conformance with standards set by international governing agreements (WIPO, TRIPS, Berne and Rome) as steps toward full and effective implementation and enforcement, when it is necessary.

• Update domestic intellectual property systems to meet the needs of the digital environment, by APEC economies seeking to:

- Include technology neutral provisions in relevant legislation to deal with rapid developments in new technologies;

- Provide efficient and effective means for dispute resolution;

- Ensure a balance of rights in the digital environment between the legitimate interests of rights holders and the interests of users in accessing creative works;

- Ensure that the balance of rights is consistent, as far as possible, with the balance of rights in the non-digital environment;

- Clarify in relevant legislation the liability of internet service providers regarding material communicated via their facilities;

- Ensure adequate enforcement of IPR systems through legislation and administration; and

- Support copyright owners to 'help themselves' with technological measures through legislation preventing unlawful circumvention of such technological anti-piracy measures.

• Develop capacity-building programs to implement effective provisions for domestic regimes.

Policies to reduce uncertainty and enhance the efficiency of the price mechanism in allocating resources are conducive to higher GDP per capita growth.

- Reduce the risks associated with cross-border capital flows and promote international financial stability by encouraging APEC-wide implementation of the Financial Stability Forum's recommendations on highly leveraged institutions, capital flows and offshore financial centers; and

- Continue APEC's provision of focused and targeted technical assistance to assist economies in implementing these recommendations.

APEC members should aim to construct a policy environment to encourage competitive investment and widespread uptake of beneficial technologies.

APEC's work has shown key goals that join to build an environment conducive to growth in the New Economy.

A predictable, simple and consistent legal framework will establish a basis for recognizing electronic transactions but it must be compatible across borders. A successful commercial transaction requires that the people involved know that a contract exists, have certainty of what to expect from one another and understand what they can do to enforce the contract. In addition, all parties to a transaction must trust that the origin and content of online information is authentic and that the credentials and identity of the involved parties can be verified.

Electronic transactions may require new or adapted legislation to provide the same level of confidence as that which exists with traditional transactions. The Model Law on Electronic Commerce developed by UNCITRAL is a proposed legal framework for considering these issues and for helping to harmonize their legal treatment worldwide.

• To ensure a coherent and transparent framework for ICT-related legislation and regulation; and

• To promote confidence among users to engage in on-line transactions.

Handwritten signatures have been accepted widely as binding evidence of commitments for business transactions. "Electronic signatures" which involve commonly recognized protocols are means for detecting digital forgery, and techniques for verifying the integrity of data files.

Overly technology specific regulation can impose requirements on "electronic signatures" that do not exist for handwritten signatures and seals and limit user choice.

Businesses, consumers and governments must be confident that the financial and other sensitive information they exchange during an electronic transaction is protected and safe from theft, alteration or misuse and that systems supporting these transactions are secure.

The open and interconnected nature of the internet involves risks and vulnerabilities. Clearly threats to the underlying information infrastructure need to be addressed to prevent damage to economies, businesses and individuals. All stakeholders have an interest in an accessible internet where safe transactions are possible.

A secure environment will be supported by cooperative efforts of APEC economies that include cross-border discussions directed at identifying threats and vulnerabilities, investment in information assurance services and technologies, application of security tools (i.e. authentication systems and security processes), information sharing on prevention methods and technologies, cooperative research and development, and outreach programs to identify best practices and codes of conduct.

Individuals seek opportunities to exercise reasonable control over the collection and use of their personal data - online or otherwise. Choices sought by users include the desire to know how information is used and the ability to seek redress for misuse.

Economies that promote approaches to protect personal data are able to build trust and confidence in secure communication and information systems. Privacy protection can be targeted at specific categories of data. For example, more rigorous approaches can be implemented for situations involving personal medical data and a less stringent approach for data such as personal contact information. Moreover, international cooperation can help ensure that regulations in one jurisdiction do not become unnecessary barriers to electronic trade.

Consumers only take the decision to transact online if they can feel confident that the desired transaction will be completed as expected. Consumer trust is not easily established without face-to-face contact and traditional national regulatory frameworks can be difficult to apply.

Electronic commerce means that consumer trust cannot be generated in the same manner as with traditional commerce. At the same time, the global and decentralized nature of electronic commerce also makes it much more difficult to utilize traditional national regulatory frameworks.

Economies have new and innovative approaches such as alternative dispute resolution (ADR) and other third-party mechanisms that can be effective in boosting consumer trust. They should refer to international principles related to electronic commerce. Furthermore, they can encourage businesses to undertake trust-building activities, such as self-regulatory quality labels and accreditation schemes. Ideally, labeling and industry codes would be complementary, and provide for mutual recognition.

The growth of the internet raises questions about the balance between a completely unregulated flow of information, and restrictions in the interest of other societal objectives. Knowledge based economies thrive where there is openness and unimpeded access to new ideas and technologies, but some content on the internet can be damaging to particular groups such as children. Each economy faces a choice when devising domestic strategies.

Some economies face difficulty gaining knowledge and information from the internet because a substantial percentage of that content is in the English language. While content in Chinese, Japanese, and Spanish is growing rapidly, developing local content is essential to taking full advantage of this medium as a way to communicate in the language and culture of respective economies. Therefore, developing local content is very essential, so that the advancement of information technology can be developed in an environment of the language and culture of respective economies.

Rules and regulations should avoid fragmented and incompatible requirements, so that they do not unduly complicate compliance in enforcement practices.

The development of standards needs to be a global, open process that should be flexible enough to encourage innovation. Along with official standards that are developed in the framework of international standards bodies, de facto industry standards should also be encouraged. Standards work should focus on open interfaces, which are necessary so that systems from different providers can interoperate, thereby encouraging competition.

Telecommunications and information infrastructure underlies all electronic transactions and enables the New Economy. Users experience the applications that ride on this infrastructure, and depend on reliable infrastructure to make possible timely connections at affordable rates. The infrastructure operates through multiple wired and wireless networks, and includes end-user devices. Different users and different applications have unique infrastructure and technology requirements.

The information technology equipment, computers, servers, digital wireless phones, etc., along with the necessary software, need to be widely available at internationally competitive market-based prices. The value of a telecommunications network for users is increased when it is interconnected with other networks. Networks need to be fully interoperable with guaranteed interconnections to maximize user value.

Access has two main components, on the supply side, competitive access by infrastructure technology/equipment, electronic commerce and internet service providers; and on the demand side, affordable, reliable, and sustainable access for all users, whether individuals, schools, government organizations, libraries, businesses and so on. The correct investment climate and economic and social policies will maximize the private sector's ability to provide access for all.

APEC's work shows that the level of access varies among local populations based on income, education, gender and location, among other factors. Competition and liberalization are essential policies to lower the price of access and increase effective demand among all user groups. These policies in a coherent investment climate enhance the private sector's ability to provide access for all. Government has an important role to play in demand creation by bringing government programs and services on line, and in education and training and supporting demand by those groups outside the market. Effective government programs are characterized by leadership, partnerships, policy coherence, consistency with market forces and ensuring sustainability of demand.

The New Economy requires a number of support services provided by business and government, such as access to the infrastructure, efficient transport, express delivery services, efficient customs, and capable banking and payment systems. The development of the IT infrastructure cannot compensate for a lack of development and liberalization of the "traditional" business services and distribution systems. To drive the benefits of the New Economy, supporting services and distribution must be reliable, fast and affordable. Removing barriers in key areas such as logistics and transport, customs, and delivery sectors can improve the pace of economies' participation in the New Economy.

Both consumer and business e-commerce transactions are dependent on specialized support to enable international transaction settlements. Consumer transactions are at present dominated by the use of credit cards as the most convenient payment method. Many new electronic payments systems and technologies are under development and in trial. The regulatory environment for support services, including advanced payments systems, should facilitate access by business and consumers to a competitive market in these services.

The internet raises business and consumer expectations by allowing goods and services to be offered real-time on a global basis. These expectations include a problem-free experience that will provide a complete solution from order entry and confirmation to payment and delivery. The regulatory environment that emerges should facilitate access by business and consumers to a competitive market in these services.

• To establish reliable, fast and affordable supporting services and distribution systems by removing barriers to logistics and transport, customs and delivery services; and

• To ensure the availability and usage of appropriate electronic systems to facilitate the efficient and effective working of these support services.

- Consider adding other support services such as advertising, content distribution, computer services and educational services.

- Explore adding pilot projects building on APEC work in the Shanghai Model Port Project, such as customs, air express and intellectual property to demonstrate efficiencies.

- Explore adding training projects building on APEC TPT-WG work providing face-to-face and online training over the internet to the transport industry on electronic commerce.

• Enhance the transparency and quality of government services through promoting e-government.

Enhanced human capacity building and entrepreneurship are fundamental to maximizing the benefits of the New Economy. Achieving these objectives requires an improved awareness and appreciation of ICT, and will involve APEC economies in encouraging and developing innovation-oriented policies and promoting the participation of SMEs in New Economy activities.

ICT has enormous potential to assist economies in achieving specific social and economic development goals, and can play a key role in broader development strategies. Its power lies, not only in the technology itself but also in ICT's ability to create influential social and economic networks, dramatically improving communication and enhancing information exchange.

The Beijing Initiative on APEC Human Capacity Building (2001) indicates that human capacity building must be integrated into the economic and social strategies of APEC economies. The World Bank has concluded that a holistic approach to policy development and integration will be crucial in ensuring that the digital divide does not remain one of the greatest impediments to development.

Many factors contribute to the unequal distribution of ICT applications among various APEC economies. Disparities in infrastructure, connectivity costs, knowledge, capital, technology, human resources (including income levels), education, gender and geographic location are influential forces which result in part from differences in cultures and traditions, different stages of economic development and varying levels of understanding.

Inequality of access to ICT between developed and developing economies, or within an economy, is an essential feature of the digital divide. In sparsely networked regions, where access to the internet is limited, growth and development are likely to be delayed. The key to narrowing the digital divide is allowing all people to have easy and affordable access to ICT. A rapid transition toward "digital inclusion" for everyone is crucial in ensuring maximum development potential. This will require leadership, not only at the economy level, but also at local and regional levels as well as partnerships between government, business, education, and social institutions. Moreover, a comprehensive and holistic approach is the most effective way to benefit from available synergies and to ensure the impact of ICT deployment is optimized.

- Adopting policies to facilitate the spread of internet enabled wireless communications; and

- Promoting activities to encourage experience-sharing and practical application of ICT experience.

• Promote the APEC-wide adoption of the recommendations in the Asian Development Bank's 2001 strategy "Toward e-Development in Asia and the Pacific" to promote growth and development and reduce the uneven access to the internet;

• Promote on-going work within APEC to identify policy attributes that support and undergird successful ICT access and rollout environments;

• Capitalize on programs relevant to the region such as the G8, Dot Force, GBDe, and the e-ASEAN initiative to create a knowledge network as a resource for examining digital opportunities and policy positions to link ongoing resources and contacts in APEC economies to expand digital capability and skills; and

• Consider development of a network of Skill Development Centers (SDCs) and programs across the Asia Pacific region, in close collaboration with the business/private sector.

In order to establish a winning position in the New Economy, it is vital for APEC to develop a society and culture that place a high value on education and training. Enabling economies to access knowledge-based prosperity will involve governments and other stakeholders in providing comprehensive, high-quality education and training and skills development programs including basic education and distance learning. APEC economies should recognize the importance of ICT as a core competency for teaching and learning programs across APEC economies.

- Support the continuation and expansion of the EDNET project, Use of IT in a Learning Society: Exchanges and a Web Portal.

- Encourage greater utilization of the APEC Education Foundation as a vehicle for advancing cyber education;

- Support the APEC Cyber Education Cooperation Consortium, including the establishment of a web portal on teaching;

- Initiate programs that utilize ICT to improve the quality of curricula, teaching methods and instructional materials;

- Encourage the development of programs to increase computer literacy amongst teachers and students, internet utilization and ICT-based education in APEC economies;

- Encourage the development of web-based language learning programs that include web-based instruction and direct communication; and

- Encourage the development of effective vocational training programs that enables the workforce to face the rapid changes faced by industry.

- The Japanese funded ADB program for IT-related training;

- The World Bank/Australia's "Virtual Colombo Plan" initiative on distance learning;

- The APEC Youth Internet Volunteers Program and other plans and programs to encourage knowledge sharing, teacher exchange and cyber-education cooperation; and

- Digital learning projects led by industry.

- Maximize the opportunities provided by