The problem is primarily a managerial and resources issue relating to having to address multiple systems in parallel. This is compounded by the very limited time before year 2000. In addition, the computer industry has a poor track record of delivering systems and upgrades on schedule. There is a significant risk of socially dysfunctional behavior relating to Y2K, e.g., hoarding, especially of cash. This risk is likely to be greater in wealthier countries, where there has been more media exposure, but may still be a significant risk in the Bank s larger DMCs.
Consideration needs to be given to printing extra notes and to developing steps to avoid hoarding.
The pervasiveness of computers in DMCs even very small countries is greater than generally realized. Although the scale of disruption in some countries may be less than others, those with a limited resource base are likely to experience more disruptive failures. Investing resources in Y2K compliance will divert DMC resources from other high-priority areas, but failing to address the problem may have even greater costs. Hence, the Y2K problem must be addressed at a national level. The Asian financial crisis has, in many DMCs, diverted attention from addressing the Y2K problem.