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ft*ft COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 15.07.1997 
COM(97)351 final 
The Information Society and Development: 
the Role of the European Union 
Communication from the Commission 
to the Council 
to the European Parliament 
to the Economic and Social Committee 
and to the Committee of the Regions 

CONTENTS 
INTRODUCTION 
A. THE CHALLENGE OF INTEGRATING TÎÎE DEVELOPING 
COUNTRIES m THE INFORMATION SOCIETY 
1. THE CONTRIBUTION OF INFORMATION AND 3 
COMMUNICATIONS TECHNOLOGIES (ÏCT) TO DEVELOPMENT 
2. THE CHALLENGES FACING THE DEVELOPING COUNTRIES 6 
B. COMMUNITY ACTION AND PROSPECTS 
3. THE EUROPEAN UNION'S CONTRIBUTION TO PROMOTING 3 
THE INFORMATION SOCIETY IN THE DEVELOPING 
COUNTRIES 
4. GIVING A NEW IMPETUS TO COMMUNITY ACTION FOR THE 10 
DEVELOPING COUNTRIES 
CONCLUSION 
ANNEX I 
List of acronyms 14 
INTRODUCTION 
Recent trends towards the information society potentially concern most human activities, 
including learning, communication, work and leisure. This applies equally to the 
developing countries, notwithstanding the diversity of their market situations, policies or 
technological capacities. This Communication presents & number of guidelines and 
mechanisms to encourage the participation of developing countries in the information 
society, not only as consumers but also in an active role. 
The G7 Conference on the information society held in Brussels in February 1995 
expressed concern about the need to avoid further widening the gap separating the 
industrial countries from the developing countries and called for "a shared vision of human 
enrichment:" i "Our action must contribute to the integration of all countries into a 
global effort. Countries in transition and developing countries must be provided with the 
chance to folly participate in this process as it will open opportunities for them to leapfrog 
stages of technology development and to stimulate social and economic development". 
The Conference on the information society and development organized in Midrand from 
13 to 15 May 1996 at President Mandela's invitation, bringing together more than 50 
countries and international organizations, focused on the specific needs of the developing 
countries and highlighted the potential of the new technologies (see supplementary 
Annex 6) It provided a forum for joint reflection reflection on the common rules required, 
the areas of cooperation towards building the global information society, and the priorities 
for development. Egypt has undertaken to organize the follow-up to this Conference. 
The EU has embarked upon redefining and modernizing its relationship with each of the 
main developing regions, providing an opportunity to take account of the information 
society concept in relations with them. For Community action a reference framework has 
to be established to secure the necessary coherence, promote possible synergies between 
the various policies, and strive for coordination with the activities of the Member States 
and of the international organizations concerned. A regional approach is recommended 
for this purpose to ensure that the action takes place in the context of existing relations 
and at the same time in that of the available cooperation instruments. For external 
partners the message should be realistic and it should draw their attention to. what is at 
stake in the current upheavals and to the efforts they have to make. 
A. THE CHALLENGE OF INTEGRATING THE DEVELOPING 
COUNTRIES IN THE GLOBAL INFORMATION SOCIETY 
1 THE CONTRIBUTION OF INFORMATION AND COMMUNICATIONS 
TECHNOLOGIES (ICT) TO DEVELOPMENT 
1.1. As emphasized at the Conferences of Midrand and Rome on the 
Mediterranean, the information society (IS) mobilizes revolutionary and 
pervasive technologies that profoundly alter the organization of work, 
education and society at large. It entails a reduction of time and space 
* Meeting of the Ministers of the G7 countries and the Member States of the European Union, Brussels, 
2&pBNi»ry 1996. 
constraints and presents a panoply of new tools with unparalleled capacities 
enabling the developing countries to make some great leaps forward in 
technology by economizing on the intermediary stages which the 
industrialized countries have gone through. The increasing complexity of 
economic relations and the unprecedented' accumulation of knowledge and 
experience are conducive to increasing global integration. However, 
countries that shut themselves off from these changes, isolating themselves 
from international trade networks and investment flows and from networks of 
scientific and cultural creativity and their spread, would risk being 
marginalized. In some countries there is the further risk of a two-speed 
society emerging, with only part of the population having access to new 
networks, services .and equipment and capable of using them with ease and 
enjoying the advantages they offer. 
1.2. In technological terms, the moves towards the information society mobilize a 
panoply of new tools which are spreading throughout the developing 
countries. There has bQQn an explosive growth in cellular mobile telephony, 
in particular where they offset the deficiencies of fixed networks. In the field 
of satellite communication, geostationary technology is in full development 
(multispot access or access on demand), and low- and medium-altitude orbit 
systems will soon be offering global services. These technologies are less 
capital-intensive and better adapted to remote regions and sparsely populated 
areas (solar-powered switches, VSAT). The capacity of optical cables is on 
the increase and connections are multiplying, e.g. those being established 
between Chile and the other countries of the Pacific coast of South America, 
and the FLAG project linking Europe and Asia via the Mediterranean. 
Internet and WWW technology provide a platform for integrating other 
technologies, including ISDN lines and ATM servers. A very wide range of 
projects is already based on these techniques and virtually all NGOs in the 
field use them. Teieports serve as "reception centres" for tele-working, in 
particular for highly labour-intensive types of services such as statistics, 
accounting, software production and airline reservation systems (Mauritius, 
Jamaica, India, the Philippines). 
Space technology offers unprecedented possibilities for development aid, in 
particular in navigation and positioning and also in earth observation. 
Specifically, earth observation satellites enable the collection of data essential 
for resource management, land management and monitoring of the 
environment. CD-ROMs contribute to education and facilitate the storage 
and dissemination of data. CIM production technologies and 
material-as-needed methods (Just in Time) lead to significant gains in 
productivity. 
1.3. Through information society applications new opportunities present 
themselves for the developing countries with advantages comparable to those 
accruing in the industrialized countries, e.g. more efficient management for 
SMEs and access to economic information, training, interactive user/server 
networks and international markets, and also enhanced efficiency for 
governments and administrations. 
Technologies for education and training, in particular distant education aid 
.multimedia, ma new modes of learning offered by the information society -cy 
be instrumental in meeting these quantitative and structural needs of countries 
that have to accommodate, train and economically integrate large numbers of 
workers (in most cases half the population is under the age of 20) in widely 
dispersed and under-equipped areas of habitation. Through continuing 
education and training, moreover, there has to be a constant renewal of skills 
throughout people's lives. 
Some countries have to cope with large-scale endemics and epidemics. 
Teïemedicmc may help to meet these challenges by improving the 
organization and management of health care. Data bases may be linked 
through telematic networks to monitor the development of diseases 
(epidemiology), provide access to medical expertise through teleconsult&tion 
and pave the way for remote medical assistance. ICT also play an important 
role in preparing and implementing health policies. 
In industry and international trade, ICT play a decisive role in improving 
competitiveness by raising production quality (more stringent standards, 
quality control) and its fashion-related aspects (textiles) or by kitegrating 
production in a complex process such as in the case of spare car components, 
or by offering facilities for the transmission of orders and specifications as the 
first steps towards electronic commerce. In some countries software 
applications and computerized data input have created a large number of jobs 
(100 000 software engineers in India) and new markets are emerging for word 
processing in the press, newsmedia and audiovisual sectors. 
In the domain of research in agriculture, chemistry, water management, 
fisheries, the environment, urban planning, etc. the development of networks 
enables researchers in the developing countries to have the necessary 
information at their disposal and to set up teams of critical size and thus to 
integrate in the global scientific community and thus stem the brain drain. 
The emergence in many developing countries of a new independent press 
and the explosive growth of the Internet, the freeing of the airwaves esiù the 
shift from state to public service broadcasting are creating an increasing 
demand for up-to-date information, both written and audiovisual. Sixh 
pluralist information contributes to strengthening Chilian society and 
consolidating the democratization process in numerous developing countries. 
Linguistic diversity, including certain Community languages as well as native 
languages of the developing countries, constitutes a cultural richness that 
forms part of man's heritage. Thanks to ICT, it can be conducive to the 
development of an industry with multicultural and multimedia contents based 
in particular on electronic publications. 
1.4. ICT are not the sole instrument to give an impetus to structural development. 
They can only be used with optimum efficiency if the societies where they are 
applied manage to master them properly. Experience in development aid 
shows that the use of new technologies must be largely adapted according to 
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national and local contexts, geographic conditions, the economic structure of 
the country concerned or to its fundamental needs. However, ICT have a 
great potential which may serve the goals of the development strategies and 
competitiveness of the developing countries. This potential has certainly not 
yet been fully exploited. The aim of this communication is to propose an 
overall strategy in this domain. 
THE CHALLENGES FACING TEE DEVELOPING COUNTRIES 
The benefits of the information society for the develomng countries depend hovvsver 
on the level of their communication and information infrastructure and the 
development capacity offered by their economic and regulatory systems. 
2.1. The level of îelesomnurnteflîion mfr-asîryeîures in the developing countries 
is highly diverse but mostly far removed from that in the industrialized 
countries. Using tslsdensity2 as an indicator, the tigure for the industrialized 
countries is over 43, that for middle-income countries around !0 while the 
least advanced countries are about 1.5 and the world average is 11.5. This 
quantitative difference is further aggravated by qualitative weaknesses of 
networks affecting the quality and reliability of communication and by 
structural disparities between urb?.n and rural areas. Teledensity in rural 
areas, for instance, does not exceed 0.8 in low-income countries. The 
infrastructures fail to meet local demand and cannot guarantee access to 
global communication networks. Moreover, default on payment by public 
administrations in certain cases, failure to allocate charges for international 
communications (deductions from the general state budget) and the existence 
of cost structures that surcharge international communication and subsidize 
local communication deprive telecommunication operators of the resources 
for their activities. Thus public management hampers the optimum use of 
existing facilities.:; 
However, there are enough factors for growth. First of all, there is a 
significant sustainable demand, witness the long waiting lists and connection 
periods of up to ten years, the existence of veritable "black markets" in 
telephone lines in some areas, and high levels of average revenue per line. 
This explains why in many countries there has been a sustained growth in 
telecommunications, e.g. more than 17% a year for all countries with an 
income level below US $700 from 1984 to 1994. The drop in the cost of 
technologies and competition from new global operators using call-back 
procedures and the like have led to a decrease in traditional revenue from 
international communication that is causing concern to the developing 
countries, raising their awareness of current changes. 
2 number of mam lines per 100 inhabitants. 
3 African Green Paper - Telecommunication Policies for Africa, Document 2~t\ 2 April 1996, 
Telecommunications Development Office, ITU. 
2.2. For tlie oilier informationinfrastructure.^ the PC ratio per 100 inhabitants 
gives an indication of the informatics gap, ranging from IE for high-income 
countries, to 2.3 for medium-income and 0.01 for low-income countries. In 
terms of the market share in information technology, the United States 
account for 34.7%, Europe for 29.3%, Japan for 14.6% and the rest of the 
world only 21,4%. These differences are also reflected in the figures for data 
transmission, the spread of Internet servers and the number of users. Rere. 
again, there are enough factors for potential growth, including the drop in 
prices, the development of multimedia applications and access to the Internet. 
The PC market is dynamic and could follow in the footsteps of television 
which is now wide-spread in low-income countries, with 46% of homes 
having a TV set. 
2.3 According to the World Bank, the annual investment necessary for the 
growth of telecommunications in the developing countries over the next five 
years amounts to US $60 billion. Financing in the form of international 
public aid would not exceed 2.3 billion and most countries cannot make up 
the difference. The necessary investment can only come from the private 
sector. However, to mobilize private investors a legislative and regulatory 
framework will have to be established that is stable, predictable and 
transparent, making it possible to take rational economic decisions. 
The commitments on market access and national treatment and on the 
regulatory principles adopted by 69 countries, including many developing 
countries, in the framework of the WTO/GATS negotiations on the 
opening-up of telecommunication services which were completed on 
15 February 1997 provide a general framework that can meet the needs of the 
developing countries. Provision is made for independence of the regulator, 
basic competition rules, interconnection of networks, universe! service 
obligations, transparency in the grant of licences, and allocation of 
frequencies. In order to make more rapid progress on the road to the 
Information Society, the developing countries ought to examine what would 
be the best approach to develop their national telecommunication systems in 
accordance with the GATS principles. 
The developing countries will thus be able to meet the commitments made to 
the WTO on telecommunication services and, in the case of countries that 
have not made such commitments, to meet these, including those relating to 
regulatory principles. 
2.4 Human resources are decisive by coping with change. This includes 
technical staff in telecommunication and computing and, in particular, those 
in the software sector, offering prospects for new jobs. This also concerns 
training for people working in information such as teachers and journalists, 
those responsible for regulation, management (marketing, financial and 
commercial services, and quality control) and new professional intermediaries 
specialized in ICT access and use; Measures should also be taken to ensure 
life-long learning. 
2.5 A dialogue on the aspects of the information society connected with 
development is carried on within certain international organizations, e.g. the 
ITU, UNESCO, UNCTAD, UNDP, with the SDNP programme, the World 
Bank, with its InfoDev initiative, and the OECD. 
B. COMMUNITY ACTION 
3. THE EUROPEAN UNION'S CONTRIBUTION TO PROMOTING TEE 
INFORMATION SOCIETY IN THE DEVELOPING COUNTRIES 
European Union action on cooperation in telecommunications and information 
technologies has progressively increased over the years. Experience shows that it 
meets a growing need more explicitly expressed by our partners and that it produces 
concrete and significant results.4 The new cooperation agreements signed with 
developing non-member countries include formal provisions on the information 
society and associated technologies. 
3.1. Economic, financial and technical cooperation has led to significant 
activities in the various partner regions of the Union.5 
In the Mediterranean region several projects have been implemented, 
including assistance in consulting Community data bases. On Malta the 
European Commission has co-financed the upgrading of the 
telecommunications network. An ECU 10 million programme was recently 
approved for the modernization of the Syrian telecommunications operator. 
In Africa the accent has been on rural telecommunications and communication 
by satellite. Two projects for rural telecommunications services have been 
implemented in Mozambique (MECU 13) under EDF VI and in Tanzania 
(MECU 25) under EDF VII. A major satellite communication project for the 
safety of civil aviation has been launched in West and Central Africa 
(MECU 38) under EDF VI and VII. In the Pacific, a number of projects have 
improved communication between the islands. 
In Central America assistance for the modernization of telecommunications is 
being set up with the COMTELCA regional organization involving financial 
support totalling ECU 18 million. Other projects have been implemented, 
including a study of human resources in Venezuela and telematic applications 
in Mexico, and AHCIET is running a programme of seminars. 
See SEC(94)428 on Telecommunications and Development, the Role of the European Union" 
(Working document of the Commission's departments) 
See the annex listing the total sums allocated by the Community (Commission + EIB) to 
telecommunication projects in the developing countries, with a breakdown by geographic areas 
(Mediterranean, Africa, Latin America and Asia; the countries of Central and Eastern Europe are 
not included in these data, although they benefit from extensive cooperation with the Union). 
-8 
Foc Asia, actions connected with the information society have been included 
in other operations. The ECIP mechanisms for promoting, partnerships, 
supplementing the ALINVEST, ASIA-INVEST and MEDINVEST regiomi 
programmes, have made it possible to support more than 20 joint venture 
projects in the information sector and introducing ICT in industry. 
3.2. From 1990 there has been international scientific cooperation with the 
developing countries under the accompanying actions (APAf) of t!ic. 
Framework Programme and projects totalling MECU 27 were launched 
between 1990 and 1994, including activities in China and India. Since 1995 
this cooperation has formed part of the fourth R&D framework programme. 
Action 2, International Cooperation, with 25 projects totalling MECU 9. 
covering subjects ranging from microelectronics, telernatic applications 
(telemedicine in Letin America, distant teaching in Africa and Latin America, 
management of natural resources and linguistic engineering in the Arsb 
countries), management of natural resources (in particular for tropica!' 
forests) and industrial applications (textile industries in the Maghreb and 
machine tools in Latin America). However, the rapidly developing countries 
have expressed regret that the financial resources dedicated to ICT wea? 
remain limited, although to them these are priority areas. Consideration is 
being given to whether European research networks should be linked up with 
the corresponding networks in the developing countries. 
3.3 The European Investment Bank has made part of the resources earmarked 
for non-member countries available for initiatives under the Lome Convention 
and agreements with the Mediterranean countries. Since 1980 over 
ECU 350 million have been lent in the countries of the Mediterranean and the 
ACP and since 1993 in the countries of Latin America and Asia that have 
signed cooperation agreements with the Community. The Bank has lent its 
support to these projects, set up at the request of the beneficiary countries 
and designed to extend or modernize telecommunications networks. Several 
loans and support in the form of risk capital have been provided to African 
countries to finance networks, in particular in rural areas, including in 
Erythrea, Burkina Faso and Namibia. In Morocco the EIB granted an 
MECU 80 loan for the extension of international cable links to connect 
Tetouan to Spain and Casablanca to Portugal and France. In Erythrea 
MECU 8 has been lent to strengthen the local network and international 
links, supplementing a regional project which also involves Djibouti. An 
MECU 75 investment was made in Chile in 1994 to connect 400 000 new 
subscribers to the digital network over the next two years, involving a 23% 
growth of initial teledensity (12 lines per 100 inhabitants). 
3.4. The Member States also have bilateral ICT programmes. For instance, the 
Commonwealth Secretariat in London promotes the organization of seminars 
on the regulation of telecommunications and also technical training courses. 
The Governet project is designed to illustrate the challenges involved in the 
implementation of Internet in Africa, presenting proposals to meet these 
challenges by linking up management experts in Africa through networks with 
the collaboration of the Association of Management Training Institutes in 
Eastern and Southern Africa (AMTIESA). The Spanish scientific and 
technical cooperation programme with the countries of Latin America 
(CYTED) has implemented several ICT projects. Initiatives taken in France 
include the RJO project (Réseau Intertropical d'Ordinateurs or intertropical 
computer network) of the French office of overseas scientific and technical 
research (ORSTOM) which at the end of the 1980s linked the research centres 
and laboratories of the countries of Southern Africa to global research 
networks. There are plans for extending the French REFER network to the 
developing countries with the assistance of AUPELF/UREF which are 
developing a scientific information system (SYFED) in the French-speaking 
countries. The INRIA (national institute for informatics and automatics 
research) continues its cooperation with numerous partners in the developing 
countries. The Italian Government, in conjunction with UNESCO and the 
Republic of Korea, has financed the RINAF project (Regional Informatics 
Network for Africa) for the creation of several access points to information 
networks in Africa in collaboration with other similar initiatives in the region, 
e.g. the RIO of ORSTOM. 
GIVING A NEW IMPETUS TO COMMUNITY ACTION FOR THE 
DEVELOPING COUNTRIES 
4.1. The outline sketched above shows that there has been increasing awareness in 
the Community and in the recipient countries of the strategic character of the 
integration of the developing countries in the information society. 
However, this calls for a strategy in which account is taken of this dimension 
when evaluating cooperation projects and programmes so as to ensure the 
coherence of all the instruments of cooperation for optimum effectiveness. 
To implement these guidelines there is no need to provide additional loans. 
Rather, the information society dimension should, with the agreement of the 
partner countries, be systematically incorporated in the existing programmes, 
rechannelling the funds made available, where appropriate, in particular 
where this dimension may be advantageous. Promoting the establishment of 
an economic and regulatory framework remains a first priority target, 
mobilizing iocal and international capital to ensure access for the developing 
countries to ICT for their benefit. The second target is to put technology at 
the service of development. 
Creating the conditions favourable to such integration requires the following: 
- establishing the prerequisites to the development of the information 
society: regulatory framework conducive to investment, commitments 
under the WTO on the basic regulatory principles for telecommunication, 
standards; 
- facilitating the access of the developing countries to the information 
society through measures relating to human resources, technology transfer 
in particular in production and trade activities, demonstration of 
applications; this also includes their participation in Community R&D 
activities. 
-10 
- supporting measures to foster partnerships between private operators of 
the Union and the developing countries; 
- contributing to better Intégration between the information and 
communication systems sf the developing countries of the same region 
so as to encourage interconnection of their systems and the development 
of new services, following the Community model; 
- fostering dialogue and coordination with international initiatives of 
the Member States and those of the international organizations concerned. 
in these activities account will be taken of the priorities of the Partners. 
Often, they will not modify the objectives of cooperation but, rather, strive to 
serve them more efficiently in the light of each country's Specific economic 
situation. Nor is it the intention that the Union should substitute itself for the 
developing countries. Rather the Union intends to provide them with the 
means to participate in working out the global frameworks for the information 
society and developing internal models for its use. 
4.2. It is proposed that cooperation should follow eight courses oï action 
comprising the following: 
• Raising awareness and fostering dialogue, including social and societal 
aspects. This can be achieved by including the information society 
dimension in the institutional dialogue between the European Union and 
most of the developing countries. Where possible this activity should be 
pursued in coordination with the awareness-raising initiatives of 
international organizations such as the World Bank (InfoDev), UNESCO 
and the ITU (in particular the World Conference on Development and 
Telecommunications to be held in Malta in 1998, and regional 
conferences) and, where appropriate, by supporting the initiatives that 
could be taken in the follow-up to the Conference of Midrand. In this 
context, it is important to encourage the establishment of concertation 
bodies between suppliers, operators <md users (governments of developing 
countries, local decision makers, companies) to examine how the new 
technologies could improve national and local development strategies. 
• Supporting the establishment cf a regulatory framework suited to the 
development of infrastructures for which the EU has wide-ranging 
experience in gradual liberalization, which may serve as a model, 
obviously with national nuances. This includes technical assistance in 
implementing the commitments made to the WTO by developing 
countries, and support for countries contemplating such commitments. 
• The use of the financial instruments administered by the Commission 
and the EIB, taking account of the other funding organisations (World 
Bank but also the BID, ADB, etc.) and by making financial cooperation 
subject to a number of conditions conducive to structural adjustment and 
progressive adaptation of the operators. Financial assistance should be 
clearly targeted and linked to consecutive stages of change. Thus, support 
-M -
will be given by priority to credible and qualified operators offering 
prospects of efficiency and sustainabiîity. A particular focus could be 
aimed at projects for rural areas or projects of regional significance. 
• Action oriented towards the regional adoption of identical standards 
ensuring interconnectability of networks and interoperability of services 
and enabling users to benefit from falling prices resulting from economies 
of scale. At the same time, an impetus should be given to the adoption of 
strict quality requirements for systems and components. The EU has 
evolved a dynamic standardization policy which has led to such standards 
as GSM, ISDN, DECT and ERMES. The developing countries could be 
more closely interested in standardization and thus benefit from 
Community experience. Such cooperation should take place in the 
framework of European bodies such as the ETSI and CEN/CENELEC. 
• Pilot projects which make it possible to demonstrate the specific benefits 
of applications, test their technical feasibility and evaluate their economic 
implications and cultural acceptance. They enable users to move forward 
in successive stages in adapting the specific applications and learning how 
to use them. It is therefore recommended that projects be incorporated in 
the existing programmes that are targeted at areas regarded as requiring 
priority under regional action plans. This should be achieved in close 
coordination with the projects launched at global level in the G7 
framework following the conference of Brussels. The Global Inventory 
Project could serve as a basis for data exchange in this field. 
• Taking account of ICT in industry, in particular in sectors where there 
is cooperation with the EU.6 
• Support for defining a strategy for the development of the information 
society, requiring provision of the necessary human resources, in 
particular through the transfer of experience in matters of training, 
multilingual access to knowledge and the utilization of new technologies in 
this domain. Particular emphasis should be placed on targeted training, 
especially at a regional level, for regulators, decision makers, distributors 
and managers, high-level technicians and media staff, both audiovisual and 
printed. Priority ought to be given to local training facilities, in particular 
for technical staff, and to improving these where they are insufficient. 
• Inclusion by the EU of the information society among the principal areas 
for action in the 5th Framework Programme in research and 
development.7 In some cases developing countries will be able to take 
6 Document of the Commissions departments on industrial cooperation in the Mediterranean region 
and in Asia. 
7 COM(97)47 final, Communication of the European Commission: Towards the 5th Framework 
Programme, the scientific and technological objectives. 
12 
part in Community programmes in this field on a prqject-by-project basis. 
This has to be implemented under the provisions on intemationd 
cooperation in the framework of the Fifth Framework Programme. 
Specifically, the interconnection of European research networks and 
those of the developing countries should be systematically promoted, in 
particular to break the isolation of researchers in developing countries and 
give them access to specific documentation. 
4.3. In order to take account of the specific economic, political and cultural 
characteristics of the developing countries and their requirements, the action 
contemplated should be modulated according to the particular features 
peculiar to each major region and the nature of the dialogue the Community 
carries on with each one of these. Specifically, a regional action plan 
should be drawn up and implemented in each case. 
• For the Mediterranean region, Community cooperation takes 
place within the framework of the Barcelona Declaration for a 
Euro-Mediterranean partnership (November 1995). The Barcelona 
action plan takes the information society into account. The Rome 
Conference on the construction of the Euro-Mediterranean 
information society (30-31 May 1996) emphasized the importance 
of a communication capacity that is commensurate with trade 
flows. An action plan drawn up in the MED A framework covers 
actions of regional interest and proposes synergy between the 
various instruments for structural adjustment, in particular by 
providing support for adaptation to the regulations, a dialogue 
through a Forum on the Information Society, accompanying 
support for the restructuring of télécommunications, training, 
and six domains for pilot projects: health care, electronic 
commerce, tourism/heritage, IT in industry and innovation, 
space technology applications, research and education 
networks. Additional projects are being submitted by recipient 
states on a bilateral basis. 
• The Lomé Convention makes provision for a framework to foster 
cooperation on communications and information with the 70 
partner states in Africa, the Caribbean and the Pacific, Priority 
applications in social and economic services have to be evolved 
in accordance with the needs specified. A reference in the Green 
Paper on EU/ACP relations8 opens the way for a new approach in 
this direction. At political level the governments of the ACP 
countries should be encouraged to take due account of the 
problems of networks and ICT while supporting their own users 
and, if necessary, setting up new bodies to underpin these 
8 Green Paper on relations between the European Union and the ACP counuies on the eve of the 
21st century, COM(96)570. 
13-
developments. A special approach is called for the least advanced 
countries. 
The countries of Latin America are linked to the European 
Community by bilateral agreements, sub-regional agreements 
concerning the countries of the Cartagena Agreement (Andean 
Pact), the countries of the central-american isthmus and a new 
agreement with MERCOSUR. There is also a regional dialogue 
with Central America (San Jose) and all the countries covered by 
the Rio Group. Provision is made for references to IS or ICT 
cooperation. Most of the countries concerned have already 
restructured their telecommunications and developed 
infrastructures with the active participation of European industry 
and operators or have set out to do so. Cooperation, based on the 
principle of mutual benefit, should encompass standards, industrial 
aspects, research and priority applications. As a first step it has 
been proposed that a conference be organized on cooperation 
between the European Union and Latin America on matters 
concerning the information society. 
The countries of Asia have emerged as consumers and dynamic 
producers of computer and communications equipment. With 
approximately half of the world's population, they appear very 
attractive in the eyes of European operators who are eager for 
closer cooperation, as was illustrated by a recent study on 
prospects for cooperation between the EU and Southern and South 
East Asia.9 On the basis of the findings of this study, an initial 
cooperation framework with these countries is currently being 
studied. It mainly covers priority areas of ICT application and the 
creation in Asia of a "technology window" to facilitate cooperation 
between companies in Europe and Asia and enable assistance on 
aspects like deregulation and standards. For the ASEAN countries, 
a programme was launched at the ASEM Summit held in Bangkok 
in April 1996. The ICT occupy an important position in the 
Partnership with ASEAN meeting planned for November 1997 in 
Singapore. The projects using satellite observation have 
contributed to the development of local know-how. Today the 
strong demand emanating from this region calls for a specific 
programme which would as its first objective foster partnerships 
between companies. In relations with India and China, targeted 
industrial cooperation should be pursued while for the poorest 
countries, such as Vietnam and Mongolia, action should by priority 
focus on basic information and communication services and 
preparations for their access to the IS. 
9 EU-Asia IT&C Economic Cooperation, Final Overall Report, August 1996, EC/ECO Mission 
No 569/96 (ref. EC CC/B/ECO/2/B7-3001/95/155). 
14 
CONCLUSIONS 
The actions undertaken to date to raise awareness and provide Information have 
highlighted the importance of integrating the developing countries in the 
information society. Following the Midrand Conference, three objectives have-
been attained: 
- the start of a dialogue between developed and developing ccuutricf : 
- the start of £ process that should lead to t vision of the glob si irifunnEvicii 
society sliced between the social sectors concerned' by development; 
- the drawing up of common principles arid cooperative action to strengthen 
our common vision and meet the challenges cf the information society. 
This dialogue has revealed the extent to which the gap between the industrialized 
countries and the less advanced countries could widen as a result cf the current 
changes; this situation calls for specific action. Bearing this in mind, the European 
Commission, which has gained significant experience in co-operation in the 
technologies in question, proposes to take up a position that is strongly conducive 
to the development of the information society in the developing countries and to 
include this dimension in its general cooperation policy with the developing 
countries. 
The actions proposed involve the existing cooperation mechanism? which will, 
where appropriate, be applied to the dialogue, awareness campaigns, the definition 
of appropriate policies, the development and interconnection of information 
infrastructures, the provision of training, the distribution of applications and the 
development of their contents. These activities will be managed under regional 
action plans which will ensure the coherence of Community action and synergy 
with action by the Member States} and provide a basis for concertation with 
international organizations. 
This approach provides the framework within which the EU and its Member 
States can play an active role as a bridge between the industrialized countries and 
the developing countries, contribute to translating into practice the participation of 
the developing countries in the emerging information society and shape it in such a 
way that each one of them can participate in it. 
15 
List of abbreviations 
ACP: 
ADB 
ABCIET: 
ALINVEST: 
AMTŒSA: 
ASEAN: 
ASEM: 
ASINVEST: 
ATM: 
AUPELF/UREF: 
BIB: 
BID: 
CEN/CENELEC: 
CEPT: 
€IM 
COMTELCA: 
CYTED: 
DECT: 
ECIP: 
ETSI African, Caribbean and Pacific states, signatories to the Lomé 
Convention 
African Development Bank 
Asociacion Hispanoamericana de Centras de Investigacion y 
empresas de Telecomunicaciones 
Investment Program for Latin America 
Association of Management Traimng Institutions of Eastern and 
Southern Africa 
Association of South East Asian Nations 
Asian-European Meeting 
Investment Program for Asia 
Asynchronous Transfer Mode 
Association des Universités Partiellement ou Entièrement de 
Langue Française - Université des Réseaux d'Expression 
Française [association of partly or fully French-speaking 
universities - university of French-speaking networks] 
European Investment Bank 
Banco Interamericano de Desarollo 
European Committee for Standardization - European Committee 
for Electrotechnical Standardization 
European Conference of Postal and Telecommunications 
Administrations 
Computer Integrated Manufacturing 
Technical Commission on Telecommunications for Central 
America 
Ciencia y Tecnologia para El Desarrollo 
Digital European Cordless Telecommunications (European 
standard for digital cordless telecommunications) 
European Community Investment Partnership 
European Telecommunications Standards Institute 
16 
EU: 
FLAG: 
GATS: 
GSM: 
G7: 
ICT 
INRIA: 
InfoDev: 
IS 
ISDN: 
ITU 
MEDINVEST: 
MERCOSUR 
NGO: 
OECD: 
ORSTOM 
PC: 
REFER: 
RIO 
SDNP/UNCTAD: 
UNCTAD: 
UNDP: 
UNESCO: 
VSAT: 
WWW: European Union 
Fiber-optic Link Around the Gfobe 
General Agreement on Trade in Services 
Global System for Mobile communications; (the digitel pan-
European mobile telephone system) 
Group of 7 (the 7 most industrialized countries) 
Information and communication technologies 
Institut National de Recherche en Informatique et Automatique 
(France) 
Information for Development (World Bank) 
Information Society 
Integrated Services Digital Network 
International Telecommunication Union 
Investment Program for the Mediterranean Area 
Mercado Comun del Cone Sur 
Non-governmental organization 
Organisation for Economic Co-operation and Development 
Organisation de la Recherche Scientifique et Technique d'Outre-
Mer 
Personal Computer 
Réseau Français de la Recherche 
Réseau Intertropical d'Ordinateurs 
Sustainable Development Network Program (United Nations) 
United Nations Conference on Trade and Development 
United Nations Development Program 
United Nations Education Science Culture Organisation 
Very-Small-Aperture Terminal (for satellite communications) 
World Wide Web 
17 
THE INFORMATION SOCIETY AND DEVELOPMENT: 
THE ROLE OF THE EUROPEAN UNION 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL 
TO THE EUROPEAN PARLIAMENT 
TO THE ECONOMIC AND SOCIAL COMMITTEE 
AND TO THE COMMITTEE OF THE REGIONS 
Reference annexes, complementary to the main document: 
(1) Statistics on Information and Communication Infrastructures in the Developing 
Countries 
(2) European Commission Projects for the development of the Information Society in 
the Developing Countries 
(3) European Investment Bank loans in the sector of telecommunications 
(4) Information Society and Development Conference, Midrand 13-15 May 1996, 
Chair's Conclusion 
(5) Euromediterranean Conference on information society, R.ome 30-31 May 1996, 
Conclusion of the Presidency 
(6) Reference paper on regulatory principles negociated in the framework of the 
General Agreement on Trade in Services (GATS) 
-4.S-
Annex I: Statistics on Information and Commnnication Infrastructures in the Developing Countries 
(Source: ITU, World Telecommunication Development Report, 1995) 
TELEPHONE: main lines and International traffic table 
* Low Income^ 
Lower Middle Inc.** 
Upper Middle Inc.4 
Higher Inc.5 
World Main lines 
{Thousand) 
47204.5 
92590 
70083 
424140.7 
634 019.2 CAGR1 (%) 
84-94 
18.1 
7.9 
8.3 
3.4 
5.0 Main lines per 
100 inliab. 
1.44 
9.64 
14.12 
50.80 
11.39 CAGR (%) 
per 100 inh. 
84-94 
15.9 
6.2 
6.4 
2.5 
3.3 Outgoing 
telephone traffic 
A4, minutes 
1 880 
3 558 
4 032 
38 402 CAGR(%) 
outgoing 
telephone traffic 
29.1 
21 
15 
14.2 
47 872 j 15 Outgoing Tel. 
Traf. minute/Inh. 
0.6 
4.2 
8.5 
46 
9.1 
1 Compound annual growth rate. It is computed by the following formula: [(Pv/po)I/n]-I, where Pv= Present value, Po= Beginning Value, n=mimbcr of periods. Tlie result is 
multiplied by 100 to obtain a percentage. 
2 GNP per Capita of US$ 675 or less. 
3 Between US$676-2 695 
4 Between US$2 696-8 355 
5 US$ 8 356 or more. 
INTERNET, PCs and TELEVISION 
r 
r© 
0 Low 
Income 
Lower 
Middle Inc. 
Upper 
Middle Inc. 
Higher 
Income INTERNET 
Networks 
52 
815 
921 
23 509 Hosts 
1 405 
39S5I 
77 886 
I 586 125 Total 
estimated 
users 
7 728 
219 181 
428 373 
723 688 DATA 
TRANSMIS 
SION 
Packet-
Switch6 
4.14 
35.20 
60.6! 
821.67 PC 
Estimated 
Pcs(1994)7 
0.09 
1.00 
2.28 
17.95 TELEVISION 
Total television 
receivers 1994 
370 855 
174 967 
115 792 
499 684 TVRec. 
per 100 
Inhab. 
11.4 
18.3 
23.9 
59.9 Total TV 
Household 
1994 
269 262 
103 084 
84 034 
277 862 Per/100, of TV 
Household 
1994 (%) 
46.4 
76.1 
81.7 
90.8 
6 Thousands of subscribers. 
7 Per 100 inhabitants. 
Annex 2: Projects financed by the European Community for the development of the Information 
Society in the Developing Countries 
1. R&D Framework Programme Projects 
Projects launched between 1990-1994 within the III Framework Programme (APAS) committed a 
total amount of 27.3 Mio ECU to Asian, Latin American and Mediterranean countries. The main 
projects of particular interest for developing countries for the support of S&T Research are the 
following: 
- Data Transmission System Concept for Decision Support System: a project based on the 
application of information and communications technologies that aims at developing an Integrated 
Flood Risk Management System for Shanghai. Partners of the project were the S&T Commission 
of Shanghai Municipality and the Shanghai Bureau of Water Conservancy. (3.532.000 ECUs) 
- Computer Integrated Manufacturing: a program consisting of 4 projects in the field of Engineering 
Research and design, in cooperation with Tsinghua and Beijing Universities, and the East China 
Institute of Technology). (1.179.000 ECUs) 
- Communication Mobile GSM: a R&DT project in the field of the new generation of mobile 
telephony technologies in China. (5.938.000 ECUs) 
- DAB-DVB: Digital Audio Broadcasting and Digital Video Broadcasting for the definition of 
common standards in China (2.000.000 ECUs) 
- Research on the interfaces of Arab and Community languages for databases or videotex in the 
Mediterranean. (130.000 ECUs) 
- Training plan: For Latin America w ith AHCIET (540.000 ECUs). 
- REDALC: Research networks in Latin America (140.000 ECUs). 
Two mini-programmes targeting Information Technology issues of specific importance for developing 
countries were launched by DGIII. 
- Keep-In-Touch Programme: 26 projects at a cost of 1.7 Mecu, to build IT cooperation based on 
researchers returning to their home countries from the European Union - a strategy to stabilise 
the local expertise in IT which is essential for development. 
- ITDC Programme: 2S projects at a cost of 4.0 Mecu. to help build capacity in High Performance 
Computing, a domain of general importance for industry, for infrastructure and for natural 
resource planning as well as satellite data exploitation. 
In the 1995 Call for Proposals, within the IV Framework Program (INCO-DC). the Commission, 
DGIII launched 12 projects and DGXIII launched 7 projects: 
- ARAMED: Extension and integration of Arabic lingware component in a unification based MT 
System for the field of medical terminology and classification (130.000 ECUs). 
- GAIA: A Multimedia tool for natural resources management and environmental education 
(700.000 ECUs). ••: 
- TELESUN: A World Wide Multimedia Teleteaching System for Universities (600.000 ECUs). 
- AREF: Arabic English French Software Localisation Tool (350.000 ECUs). 
- D A WRON: Design of advanced wavelength-routed optical networks (597.000 ECUs). 
- ELCANO: European and Latin American countries associated for a networked database of 
outstanding guidelines in unusual clinical cases (465.000 ECUs). 
- African Telecom: African Telecommunication Research (211.000 ECUs). 
- Micropowcr sources: Micro-battery technologies - (500.000 ECUs). 
- Porous Tech Sensors: Integrated porous silicon based sensor technology - (320.000 ECUs). 
- ITUBR: Implantable telemetry for physiological data acquisition -( 350.000 ECUs). 
- PARALIN: High Performance Computing applied to energy efficiency in mining and electrical 
power industry - (630.000 ECUs). 
- Peace by HPC: High Performance Computing and networking for joint research in medicine and 
hi-tech design -(350.000 ECUs). 
- HIPSÏA: High Performance Computing applied to manufacturing technology - (220.000 ECUs). 
- HPC Finance: High Performance Computing applied to financial and economic planning (500.000 
ECUs). 
- QC1ME: Quality control management software tools (299.000 ECUs). 
- Iberstandard: Maintainable database for industrial standards in Information Systems development 
(135.000 ECUs). 
- SCM+: Extended agri-enterprise - ( 100.000 ECUs). 
- DASEC: EDI for Chinese public administration and government - (300.000 ECUs). 
- IBERCHIP: CAD and ASIC design and fabrication network - (300.000 ECUs). 
An additional initiative financed by DG XIII was a Workshop on: Information Society in the Euro-
Mediterranean context (104.000 ECUs). 
For the second call for proposals (1996) under INCO-DC. the following list of projects to be financed 
by the Commission has been established: 21 to be financed by DGIII and 9 to be financed by DGXIII. 
• Information Society 
- ARGON'AUTA, for the development of a network application in the sector of health care and 
continuous medical education in remote regions of Argentina and Chile. (1.000.000 ECUs) 
- MUBOSIC, will allow to develop new a communication tool to use of Digital Audio Broadcasting 
(DAB) multimedia services to fixed and mobile DAB users in China with a great advantage for 
rural areas. (849.000 ECUs) 
- HARMON, will carry out fundamental research in the field of psycho-pedagogy applied to social 
insertion for the disabled and those socially excluded people. (580.000 ECUs) 
- TEBALA, for the promotion of tele-working initiatives and to develop a network and links 
between Latin America and Europe. (253.000 ECUs) 
- TISMAC. will promote fundamental applied research in the field of transport. (655.000 ECUs) 
- MEDEDl: Arabic language EDI and Internet technologies (425.000 ECUs). 
- MEDINA: Information networks for the Arab world (4S9.000 ECUs). 
- Internet in Asia: Social usage of internet in Asia (150.000 ECUs). 
- MEDISAT: Mediterranean S&T information network (300.000 ECUs). 
• Advanced Telecommunications Technologies 
- USEE SM, will allow the upgrading of Science and Engineering education in Southern 
Mediterranean universities using the Telematics technologies. (309.000 ECUs) 
- TRINET, for the development of data communications network appropriate for use in remote areas 
of DCs using Low Earth Orbit Satellite technology. (500.000 ECUs) 
• Linguistics Engineering 
- DIINAR-MBC. for the research activities to create a multilingual lexical database for the benefit 
of both Arabic and European parties. (430.000 ECUs) 
- IDOL, for the development of a computer assisted translation tools for users of less favoured 
languages. (511.000 ECUs) 
• Software Technologies: 
- MAGICTOURNET: Multimedia and GIS applied to regional tourism (400.000 ECUs). .^ 
- SIMES: Multimedia systems for sub-saharan environment (450.000 ECUs). : 
- SQUAD: Software quality (275.000 ECUs). 
- PROSME: Quality management for SMEs (400.000 ECUs). 
- ESIMEAU: IT in water resource management (700.000 ECUs). 
- AMOVIP: Advanced modelling of visual information processing (400.000 ECUs). 
• Computer Integrated Manufacturing: 
- CARIBCAD: Internet based Computer Aided Design (350.000 ECUs). 
- MTOM3D: IT design tools for the textile industry (450.000 ECUs). 
- TEXCOM TOOLS: Tools for communications in the textile industry (450.000 ECUs). 
- EIAM-IPE: Systems for management of intelligent actuators in industry' (100.000 ECUs). 
- PROQUS: Model based industrial quality control (280.000 ECUs). 
- TAUTEM: Integration in Manufacturing and technology transfer (350.000 ECUs). 
• Keep In Touch 
5 actions will be supported in domains related to micro-electronics, IT in manufacturing, software 
engineering and multimedia technologies (350.000 ECUs). 
In addition a new call for proposals has been issued for information technologies in the mediterranean 
area. 
2. . The main projects implemented or under implementation concerning different areas of 
• application (financed hv ALAMED and ACP funds) 
• In the telecom infrastructure area 
- Improvement of national telecom network in Ivory Coast. Sierra Leone, Senegal, Ethiopia, Sudan, 
Kenya. Zimbabwe. Fiji, Benin, Congo, Kiribati. Mozambique, Niger 
- Improvement of regional satellite telecommunications in the Pacific 
- Improvement of regional satellite telecommunications in Western Africa as a participation to the 
ITU/PANAFTEL project 
- Improvement of a regional air navigation telecom in the Indian Ocean and in the Pacific. 
- Regional programme for improvement of the telecommunications in the Central american 
Countries 
- Studies on regional satelite communications in the Andean Pact 
- Programme of rehabilitation of Syrian Telecommunications 
• In the Tr un sport area 
- Telecom Network for civil aviation control and safety linking all international airports of the Gulf 
of Guinea countries via the Intelsat satellite. 
- Improvement of a regional air navigation telecom in the Indian Ocean and in the Pacific. 
• in the trade area 
- Automated System for Customs (ASYCUDA) in several countries in Africa. Indian Ocean and the 
Caribbean as part of an UNCTAD programme 
- Advanced Cargo Information System (ACIS) on some of the main transport mode in east African 
countries 
- Regional Telematics Network Services (RTNS) for the Horn of Africa Countries 
- Information and Communication Systems in the framework of a trade exchange projects in the 
Caribbean region 
- Computerised system for external trade statistics in the Indian Ocean countries. 
• In the environment, natural resources, forestry, fisheries areas 
- Early warning crop forecasting and environment surveillance system for the Horn of Africa using 
satellites data 
- Information system and support to decision making for a permanent and global management of 
coastal zones of the Indian Ocean countries 
- Hurricane early warning and tracking system in the south pacific region, in the Meteorological 
Organisations (WMO) programmes 
- Participation to the elaboration of two data bases : Fishbase and Reefbase 
- Large scale dissemination of Fishbase to all ACP countries concerned including support for 
research environment in the context of ACP-EU Fisheries Research Initiative 
- Lake Victoria Fisheries Research programme with managemant of related databases 
- Installation of 14 terminals to improve the telecommunications through the PEACESAT network . 
between the Forum Fisheries Agency (FFA) in the Pacific with its member states. •-, 
• /// Educational and cultural ureas 
- integrated library automatization system for the public library of Curaçao 
The main projects for which no financing decision has been taken vet (under appraisal or 
for possible consideration') arc the following: 
- Installation of ground facilities for a global navigation satellite system in Africa and in the Indian 
Ocean region to expand to these regions the European Geostationery Navigation Overlay Service 
(EGN'OS) to be deployed in the EU. 
- Regional fisheries Information and Analysis System (FIAS) for West African countries to link up 
otherwise incompatible and isolated data bases covering different disciplines 
- Participation to the FAO project of the Land Cover Map and Database of Africa (AFRICOVER) 
based on satellite remote sensing 
- Installation of Trade Points in West Africa, East and Southern Africa countries and in Mauritius 
as a participation to the UNCTAD Trade Efficiency Initiative 
- Implementation of monitoring, control and surveillance of fishing activities (MCS) with the 
SADC Countries 
-*v-
INFORMATION SOCIETY AND 
DEVELOPMENT CONFERENCE 
13-15 May 1996 
Gallagher Estate 
Afidrand, South Africa 
CHAIR'S CONCLUSIONS 
INTRODUCTION 
The world is in the throes of a new and highly potent revolution. This revolution will forever change the way 
we live, work, play, organise our societies and ultimately define ourselves. Unlike previous technological 
revolutions which were focused on energy and matter, this fundamental change involves our understanding 
of time, space, distance and knowledge. This revolution is leading to the creation of the Global Information 
Society (GIS). 
BACKGROUND 
In February 1995, Ministers from the Group of Seven Highly Industrialised Nations (G-7) and Members of 
the European Commission (EC) met in Brussels at the G-7 Ministerial Conference on the Information 
Society. This Conference re-emphasised the need for all countries, including developing countries and 
countries in transition, to be integrated in the GIS. 
However, the challenges of integrating the less industrialised countries of the world into the GIS are 
tremendous. As South African Executive Deputy President Thabo Mbeki argued in his keynote address to 
the G-7 Information Society Conference, '"there are more telephone lines in Manhattan than in all of sub-
Saharan Africa," and that "half of humanity has never made a telephone call." Mbeki challenged the-G-7 and 
the EC to convene a follow-up conference bringing together a cross-section of the developing world with the 
G-7 and the EU to exchange views on such questions as strategy, finance and international coordination in 
confronting the global information and communication challenge. He offered South Africa as host for such 
an initiative. The Information Society and Development (IS AD) Conference is the result of that challenge. 
The ISAD Conference, held in Midrand, South Africa under the auspices of South African Executive Deputy 
President Thabo Mbeki, included representatives from 40 countries and 18 international organisations. 
Delegations consisted of government ministers and senior officials, CEOs and other private sector 
participants, and civil society representatives. This historic conference accomplished its three primary* 
objectives of. 
• Launching a dialogue between the developed and developing worlds and within the 
developing world on the emerging Global Information Society; 
• Initiating the process to define a shared vision for the Global Information Society between 
the relevant societal sectors in the developed and developing countries; 
Working towards "Common Principles'" and '"Collaborative Actions*' to strengthen our 
shared vision and meet the challenges of the Global Information Society. 
-S.il-
i&F&totÀTios Scarry As& DEiZLOMEsrCasFEKExce: CHAIR *$ Coxcusioxs 
USÎNG THE POTENTIAL OF THE INFORMATION SOCIETY TO 
MEET TEE NEEDS OF THE DEVELOPING WORLD 
the Present Reality 
While we speak of a "global" information society, the present reality is daunting. The technology gap 
between the less developed and industrialised countries of the world is widening. This situation must be 
addressed by the world community if we are to build a truly Global Information Society. In respect to the 
present reality, we acknowledge the following: 
• Information and Communication Technologies and Sep. ices have the potential to offer a 
significant contribution towards the promotion of sustainable growth in all countries: 
. «. There currently exists a huge gap between the highly-industrialised countries and the 
less-industrialised countries in terms of information inJfrastructure; 
• Through developing an information infrastructure and effectively utilising information and 
communications technologies and seniccs, developing countries can narrow the current gap 
in economic and social development and prevent it from widening; 
• There are tremendous and diverse needs in the developing world which often differ from the 
needs of the more industrialised countries: and, 
• Developing countries must assess their own requirements and strategies for entry into the 
Global Information Society based on their specific realities. 
Mobilising the Required Investments 
'There is clearly an unsatisfactory level of investment in information infrastructure development in the less 
industrialised countries. Being able to mobilise the necessary investment, particularly from the private sector, 
is of paramount importance to the developing countries. Of equal importance, is being able to develop 
networks which enable the whole of their populations to gain access to the global information infrastructure 
and participate in the GIS at affordable prices. In respect to mobilising the required investments for 
information infrastructure development, we acknowledge the following: 
• There is currendy an insufficient investment in developing information infrastructures in the 
less industrialised countries; 
• There is an extensive demand for information and communications technologies and 
services in the developing world; and, 
• To create a truly Global Information Society, we must mobilise appropriate investment. 
Employment, Labour Market and Work 
The new techno-economic paradigm of the global economy is increasingly driven by knowledge-intensive 
sectors which utilise information and communications technologies. These economic sectors could form the 
basis of entirely new multi-media industries, products and services which could contribute to attracting 
investment and creating emploient within national economies. In respect to employment, labour market 
and work in the GIS, we acknowledge the following: 
A new knowledge intensive global economy is emerging: 
• The new global economy can stimulate new industries and emplosment opportunities: 
• We must attempt to minimise the risk and enhance the opportunities for Labour; and? 
Access to training and lifelong learning must be promoted. 
IXFCRMATIOX SOCIETY AXD DEI ZLOPMEST COSFERESCE: CH.-UR 's Coxcwstoxs 
Using the Potential of Information Technologies 
Meeting basic needs, developing human resources, growing the economy, creating a culture of effective 
delivery of public services, promoting a participatory democracy and conveying different cultures and ideas 
are challenges jointly faced by all countries in the world. New information and communication technologies, 
increasingly affordable as their costs continue to fall, could help developing nations "leapfrog" entire stages 
of development in setting up their own information infrastructures and applications. In respect to using the 
potential of information technologies, we acknowledge the following: 
• Information technologies have tremendous potential to: meet basic needs, develop human 
resources, grow economies facilitate new competitive advantages, improve the efficiency 
of government management and the delivery of public services, promoting participatory 
democracy as well as cultural and linguistic diversity in each country; 
•. -m To achieve these benefits, the particular environment in each nation must be considered to 
promote the optimal mix of technologies in deploying the information infrastructure: and, 
• These new information and communication technologies will help developing nations 
"leapfrog" entire stages of development. 
Key opportunities exist in the following areas: 
• Enhanced capacity for the development of human resources, skills and competencies; 
• Improved debt management within each country; 
• Improved effectiveness, efficiency and productivity in the workplace; 
• Greater decision-making capability- through timely access to information; 
• Efficient delivery of public services through improved mechanisms and greater customer 
responsiveness; 
• Increased access to public information; 
• More efficient interface between the public and private sectors, 
• Economic growth and development through electronic trade, investment and commerce, 
particularly for Small, Medium and Micro Enterprises (SMMEs); 
• Decrease in the need for migration to urban areas, 
• Health care improvement; 
• Better management of natural resources and the environment, and. 
• Early-warning systems for weather and other environmental phenomena. .;:. 
Mobilising Investment Through Appropriate Regulatory Conditions 
The establishment of an advanced information and communications infrastructure requires a favourable 
investment climate. In many countries, achieving such an environment might necessitate changes in the 
regulatory framework and economic restructuring aimed at a more liberalised telecommunications sector 
which could provide more choice, higher quality and better access. In attracting direct investment, national 
regulator)' policy objectives need to be transparent, and consistently applied, in respect to mobilising 
investment through appropriate regulatory conditions, we acknowledge the following: 
• In order to mobilise and attract investment, developing countries must create a climate 
conducive to investment; 
• This necessitates an adaptable regulatory framework based upon competition and aiming 
ac the provision of more choice, higher quality and better access; 
The process should take into account the particular realities in each country; and, 
• Investment in indigenous content creation should be encouraged. 
IxroMAfroxSoasmAxD ÛE\ ELOFMEXTCOXFERESCE: CHMR 'S COXCUSTOXS 
People s Involvement: Social and Societal Aspects 
The information society has the potential to enhance the quality of life of all participants. However, the scale 
and pace of improvements in social welfare and economic development will depend heavily on the universal 
enabling environment. The social and societal benefits of the information infrastructure will be optimised 
by an approach which aims at the highest possible levels of participation. The alternative would lead to the 
emergence of two ''information-classes" of citizens. In the developing world, the risk of creating a two-tiered 
society, where onh- ooe group of the population has access to new networks, services, and equipment, is even 
greater than in the developed countries. In respect to social and societal aspects of the GIS, we acknowledge 
the following: 
••• , The Information Society must enhance the quality of life for ail participants and avoid 
developing a two-tiered society; 
• Life-long Education is a major key to enable full and active participation by all citizens in 
the GIS; and. 
• Indigenous content creation should address the cultural and linguistic requirements of each 
society. 
CREATING THE GLOBAL INFORMATION SOCIETY 
Shared Vision of Human Enrichment 
The potential rewards of working together towards a GIS are enticing and include: a better balance in 
economic and social progress between nations, growth of the global economy; the capacity to solve common 
societal problems, enhancing the progress of democratic values, and sharing as well as augmenting cultural 
creativity, traditions and identities. On this shared vision of human enrichment, we acknowledge the 
following: 
• A consensus is emerging about the importance of global information society;". 
• Ko single model is universal; and, 
• A globally cooperative approach is required. 
Launching a Dialogue Between the Developed and Developing World 
Like all societies, the GIS needs to be built on a set of common norms, on tolerance, on respect of diversity 
and on habits of collaboration and combined efforts. Easing its birth, like dealing with all major "shifts", 
means overcoming uncertainties and a break in continuity. While it is bringing our world closer together, 
existing differences in social and economic development are becoming more apparent and the difficulties they 
create are worsening. In respect to launching a dialogue between the developed and developing world, we 
acknowledge the following: 
• Building the GIS requires common guidelines, tolerance, respect for diversity and 
collaborative actions; and, 
• Distinct national visions should converge into a shared global vision. 
-U-
IXF)MATt0x'S0CtET\AXDD£tEL0F.\tEXTC0XFER£XCE:CftMR'SC0XCLCSt0XS 
Common Principles and Collaborative Actions 
The developing and developed worlds should agree on the principles for cooperation in the GIS. Close 
collaboration at the highest level will ensure the efficient introduction and development of a truly "Global*" 
information society and prevent the marginalization of some countries from this inevitable revolution. 
Like all societies, the Global Information Societv- needs to be built on a set of principles, on respect of 
diversity and on collaboration. 
Following the principles endorsed by the Brussels conference, which are 
• promoting dvnamic competition 
• . encQuraging private investment 
• defining an adaptable regulatory framework 
• providing open access to networks 
while 
• ensuring universal provision of and access to services 
• promoting equality of opportunity to the citizen 
• promoting diversity of content, including cultural and Linguistic diversity 
• recognising the necessity of worldwide co-operation with particular attention to less developed 
countries 
and taking into account the key policy issues identified at the ISAD conference, which are 
universal sen-ice 
clear regulatory framework 
sustainable socio-economic development 
employment creation 
global co-operation and competitiveness 
diversity of applications and content 
diversity of language and culture 
co-operation in technology-
private investment and competition 
protection of intellectual property rights 
privacy and data security 
narrowing the infrastructure gap 
co-operation in research and technological development 
the ISAD participants are therefore resolved to continuing the dialogue and taking appropriate action on these 
principles and policy issues. 
Furthermore wc are committed to: 
• Fostering partnerships between the public and private sectors; 
» Continue or begin a process of national information society planning in each of our countries which 
is ultimately in concert with the development of a Global Information Society; 
tXFOR.UATfOXSOCIETYASD DEIELOFMEXTCOXFEREXCE: CH.AJR'SCOXCUSIOXS 
• Encourage further discussions towards identifying and implementing Global Information Societv 
Projects in conjunction with non-governmental organisations and international organisations; 
• Share information on best practices of development programmes and usage of information and 
communication technologies; 
• Call upon international organisations to re-assess and refocus their development tools to give active 
follow-up to the principles and policies identified at this conference; and 
• Fully utilise various policies and private and public financial instruments available for the 
development of the Global Information Society 
Participants welcomed the contribution of representatives of civil society .and business leaders in the 
proceedirtgs-of the Conference. They re-emphasised the need of public and private sector co-operation and 
partnership'in achieving common goals. 
These ISAD conclusions are informed by a commitment to ensure that the development of the Global 
Information Societv benefits all humanitv. 
-<£*&-
CONFERENCE')!7 ROME 
ON THE EURO-MEDITERRANEAN COOPERATION IN THE FIELD OF THE 
INFORMATION SOCIETY 
CONCLUSION OF THE PRESIDENCY 
Introduction 
The Euro-Mediterranean Conference of the 27-28 November in Barcelona has set itself 
the objective of creating a true partnership Euro-Mediterranean. With regards to the 
economic and financial sectors, the Conference stressed the importance of the role of 
science and technology in the social and economic development of the concerned 
countries, as well as the necessity to modernise the telecommunications infrastructure and 
to optimise the use of Information Technologies. 
In this: context, the Rome Conference underlined the importance of à harmonious 
transition towards the Information Society in the Mediterranean region and the utility to 
define national priorities and strategies in such a way as to create a favourable 
environment for such an evolution. It further implies a sustained effort in order to 
reinforce the co-operation between the European Union and its Mediterranean partners 
and especially in the three following sectors: 
- adaptation and development of telecommunications infrastructures and services 
- research and development 
- human resources „ 
that are closely linked and constitute the major elements of a Euro-Mediterranean 
partnership firmly turned towards the future. 
To this effect the Présidence requested the Commission to set up in the context of the 
recommandations adopted by the Barcelona Conference the concrete means necessary for 
the implementation of the projects related to the Information Society and of regional 
interest. 
I Promoting the interconnection and development of communications arid 
trans-Mediterranean information networks for economic co-operation 
The Presidency noted that the participants welcomed the results of the workshop on the 
regulatory framework and the development of communications networks for economic 
co-operation that was held in Palermo on the 6/7th May 1996 whose conclusions arc 
annexed hereto. 
In order to facilitate the interconnection and interoperability of the terrestrial and satellite 
telecommunications netwoiks between the l-U and Medilcriancan countries, and 
contribute to the selling up of infrastructures facilitating the economic and cultural 
exchanges, the dcsiiability was sressed of mantaiuing a constant and open dialogue 
between the lunopcan Union and the Mediterranean Countries on the regulatory 
framewotl; for telecommunications, as well as the need for the standardisation which aie 
leipiiied ir. oulci to as'.'nc the !:i!«--.>;viahilily ofnrt woi l.s 
This dialogue' will have to be supported by concrete co-operation initiatives, which will 
tneiude -in particular- the promotion of the development of human ressources through 
appropriate training initiatives 
The need was also mentioned of having a harmonised regulatory framework that plan for 
the progressive introduction of free market principles in the EU and Mediterranean 
telecommunication sector in order to promote investments. In this respect, it would be 
advisable to encourage competition in order to improve the quality of services, reduce 
costs and widen the range of supplies. 
The validity of the principle of separation of functions, in the respect of each country's 
unique characteristics, between the regulatory authorities and the telecommunications 
operators, was generally recognised. It was further recognised that the commitment of the 
regulatory authorities must above all focus on the general objectives of national 
telecommunications policy, and at the same time guarantee a universal service at an 
affordable price and conforms to the recognised rules. 
The Presidency noted with interest the co-operation initiatives identified in Palermo, and 
asks to the Commission to study the possibility of carrying out the development projects 
put forward in that forum within the framework of existing budjetay ressources, and 
according to appropriate procedures. 
In particular, the Commission intends to organise potentional meetings between 
telecommunications regulatory Authorities of Euro-Mediterranean partners, in order to 
promote a coordinated regulatory framework. 
In addition the Commission will promote the organization of Fora of euro-mediterranean 
operators in order to obtain a concrete cooperation among economic operators and to 
allow the integration of netwoks infrastructures. Firstly it has been proposed to organise 
a workshop on applications of satellites in the Euro-mediterranean region before .the end 
of 1996. 
Moreover the Commission will encourage the regional training projects destinated to 
euro-mediterranean regulatory Authorities and operators. Furthermore it has been 
suggested to install a network of institutions of economic telecommunication studies of 
euro-mediterranean partners within an Observatory for the communication development 
in the region. 
On its part the Commission has asked for the support of the euro-mediterranean partners 
for the realization of a study launched in connection with the World Bank and I.T.U. on 
the situation of telecommunications in the Mediterranean and the modalities ol 
development cooperation in the sector 
--V4-
II To put a*c5C;n*cli t\tul technological development «I Ihe.wvia* of Ihc 
Information Society and social nu cl economic development 
The Conference participants have favourably acknowledged the results obtained during 
the Sophia-Antipolis workshop of the 1-2 nd April 1996 which arc reported in the annex-
to the present document. 
On those bases, the importance of maintaining a constant, open and sustained dialogue 
through concrete initiatives between the Euro-Mediterranean partners has been 
underlined. To this effect, the Follow Up Committee for the research issue of the 
Barcelona dialogue, which met in Capri in Mai 1996, could constitute an appropriate 
framework. 
The Présidence has noted with satisfaction that the delegations expressed the wish of 
launching co-operation actions, as soon as possible, covering the whole of the concerned 
fields ranging from basic research to demonstration projects bearing in mind the specific 
needs in the fields of training, awareness building for the users and the reinforcement of 
The research capacity and technological support. 
To this end, the available means of the Fourth Framework Programme that are likely to 
interest the Mediterranean region, would see their impact reinforced by a fast and mass 
commitment without questioning the established balances. 
It appeared desirable that clear and efficient mechanisms be established in order to support 
the activities at the hart of the Euro-Mediterranean partnership according to the Barcelona 
Declaration and in coordination with the tools of the Framework Programme. 
Furthermore, it has been agreed to encourage a bilateral resource mobilisation of the 
European Union's Member States in the neighbouring sectors. 
Finally, a ceratain number of proposals seemed to be particularly important: 
- establishing links between Information Society application projects set up in the 
European Union, and similar projects in Mediterranean partners; 
- promote the constitution of a high capacity' Euro-Mediterranean data: 
transmission backbone using submarine cable infrastructures and existing or future* 
satellites. The World Wide Web (WWW), reinforced by a satellite infrastructure, 
would provide the perfect common tool for the development of "thematic 
communities" and for the realisation of "pi'ot projects" identified by the Follow Up 
Committee for the research issue of the Barcelona dialogue All these activities 
could be the object of a Euro-Mediterranean technological co-operation initiative. 
To this effect :i preparatory workshop will be organised by the end of the current 
year 
• piomoimji the development of v'ieniilic activities of ieseaichcr> and those in 
eh.nue of kvlifioluiiioal development in then countries of origin especially through 
"keep in l«»;ieh" ."serious. 
lui iheui!«>;e. I he pailieipants took n.'le of the Conference of ih«- industrials which 
wa. i:.-!.i !i. • ;•• .'!••: .«fm.i; 
HI To put new technologies at the service of the development of human resources 
niiefen cou rage, through training actions, the establishment cf the Information 
Society 
The participants of the Conference have favourably acknowledged the conclusions of the 
80155615' workshop on education and training (which report U annexed to this document), 
which was held on 2/3rd of May 1996. Moreover, it was maintained that from now on, 
developing strategies will have to be increasingly based on advanced communications and 
information networks and on educational and professional training systems which foster 
lifelong learning, mobility and reconversion. 
Education and training play a fundamental role in those changes brought about by 
innovation technologies which concern both individuals and the economic dynamic. 
Information Society tools contribute to the establishment of new and promising 
educational opportunities, thus providing everyone with complementary and more 
efficient.means to widen their own knowledge and introducing a potential factor of equal 
opportunities. Moreover, they would increase access to information and make it available 
for the greatest number of citizens. 
In this sense it has been reaffirmed the need for strengthening the links between the 
European Union and its Mediterranean partners as far as training and more generally 
cultural and societal aspects are concerned, in order to integrate them in a long-term co­
operation context. It would be advisable to deepen the mutual rethinking of diffusion 
methods and training experiences at a Mediterranean level on the use of Information 
Society tools as well as on the educational techniques which are more appropriate in 
relations to new technologies. 
More specifically, the Italian Presidency noted the interest expressed by the participants 
to: 
- promote co-operational pilote projects in order to give the students, since the primary 
level of education, the basic knowledge for understanding the new technologies and using 
them in their life in a critical and responsible way. 
- intensify' the exchange of experience on educational and training projects which involve 
the use of communication and information technologies, in the fields of primary, 
secondary and university education, initial and continued professional training, adults and 
teacher training. In this perspective, it would be desirable to foresee the creation of a 
Euro-Mediterranean network for the identification of potential partners and for the 
exchange of information. This network might be built on the already existing poles of 
competence. 
- foster initial and continued training in the field of télécommunications and access to 
electronic infbriiKKicwi networks. 
- eiiMite that co>i*per;tfioit. fhtotfct:ii evistnru: uiiti;iiivt::». will have all! :be necessary synergy 
h> kiiplernerit rUeihienancan a^rr/urs- kr^tï «ni te;idim£ jtnd c.<im\ learning, Tints 
*cjM•tsewiins:, a oM pv»iti* of pefcuc^e tor the tkveÎKpttfvrtt of i»*bw .ictioivs These actkws-
wvtftMi Iv fersvivideJ m the tK*ti«*-\tbi ::>•?« at fec^M trct^Mvisship. 
-^~S -
- give special support to the pilot projects which, in the context of existing programmes, 
involve-'putting the application of information technologies at the service of education and 
training (including on-line networks, optical fibres, television channels, also the satellite 
ones, distance learning infrastructures). One of the objectives will be to identify, without 
ignoring either consistency with the existing ones or cultural mediation requirements; 
cheap and feasible optimal models for education and distant training. 
- favourably foster projects concerning the building of awareness and the training of 
teachers and training staff. Indeed, these actions would have the advantage of familiarising 
the users with new technologies and thus allow them to fully integrate the future evolution 
and play an active part in it. 
~-bq_ 
Annex 6 : Regulatory framework of the General Agreement on Trade in Services 
(CATS) 
The Negotiations on basic telecommunications services, held in the GATS framework 
under the auspices of the World Trade Organisation (WTO) in Geneva, started in April 
1994, shortly after the end of the Uaiguay Round. Governments worked to set aside 
national differences on how basic telecommunications might be defined domestically. They 
negotiated on all public and private telecommunications services (local, domestic long­
distance and international). Services covered by this Agreement include voice telephone, 
data transmission, telex, telegraph, facsimile, private leased circuit services (i.e. the sale or 
lease of transmission capacity), provided on a facilities-basis or by resale, and through any 
means of technology (e.g. cable, wireless and satellites). 
Negotiations concluded successfully on February 15, 1997. As a result, 69 governments 
undertook legally binding commitments on access to /and national treatment on 
their respective telecommunications services' markets. Commitments undertaken 
reflect various degrees of liberalisation and development of the sector in the different 
countries, in accordance with the GATS principle of progressive liberalisation. The 
commitments are inscribed in so-called "offers" (Schedules of Specific Commitments on 
Basic Telecommunications). Out of the 55 offers (counting the European Community as 
one), 35 pertain to developing countries. Together the offers account for well over 90% 
of world revenues from telecommunications services. 
The most important result of the Agreement is that the telecommunications services' 
sector is now fully embedded in the WTO multilateral trading system, namely that: 
1. The GATS general obligations and disciplines will apply to it from the date of entry 
into force of the Agreement (1.1.1998): 
• Most-favoured-nation (iMFN) treatment: Each WTO Member shall accord to 
télécommunications services and service suppliers of any other Member treatment no 
less favourable than that it grants to telecom services and service suppliers of any other 
country (i.e. non-discrimination between countries); 
Members wishing to maintain measures inconsistent with the most-favoured-nation 
obligation had the one-off possibility, before the conclusion of the Agreement, to table 
a MFN-exemption. Very few countries have chosen to do so, and the scope of their 
exemptions remains limited.21 
• Transparency (publication / public availability of all relevant information); 
• Domestic regulation: In each telecom services' sector for which a country- has 
undertaken market access commitments, it must ensure that all its measures which 
21 The oul\ permitted exceptions to the M FN principle are: 1) economic integration agreements (such as 
the EC. NAFTA, etc.) provided thc> cover substantially till services sectors; and 2) advantages conferred 
to adjacent countries in order to facilitate the exchange of services limited to contiguous frontier zones. 
-"vru 
affect trade in such services are administered in a non-discriminatory, objective and 
transparent manner. F.g., licensing requirements and technical standards must be 
based on objective and transparent criteria, and cannot act as a disguised market access 
barrier -- unless otherwise specified in the country's offer; 
• Disciplines for monopolies and exclusive service suppliers: Each Member shall 
ensure that any monopoly or exclusive supplier in its territory does not act in a manner 
inconsistent with that Member's MFN obligation and market access commitments. In 
addition, where the monopoly or exclusive supplier competes — either directly or 
through an affiliated company - in the supply of a service which is outside the scope of 
its monopoly or exclusive rights and is part of that Member's market access 
commitments, the monopoly or exclusive supplier is not allowed to abuse its monopoly 
or exclusive right position; 
• Disciplines concerning business practices: Each Member shall, at the request of any 
other Member, enter into consultations with a view to eliminate business practices of 
its service suppliers in case such practices restrain competition and thereby trade in 
services 
The above-described GATS general obligations and disciplines will apply to 
telecommunications services for all four modes of supply — within the limits of each 
country's commitments. Of particular importance in this respect are the cross-border 
supply and the supply through establishment of a commercial presence (foreign 
investment). 
2. The GATS 'Annex on Telecommunications' (entered into force already at the end 
of the Uruguay Round) which provides for: 
• Transparency: Each Member shall ensure that relevant information on conditions 
affecting access to and use of public telecommunications transport networks and 
services is publicly available, including: tariffs, specifications of technical interfaces, 
information on bodies responsible for the preparation and adoption of standards, etc.] 
• Access to and use of public telecommunications transport networks and services: 
The Annex acknowledges the dual role of the telecommunications services' sector, as a 
distinct sector of economic activity and as the underlying transport means for other, 
economic activities. Each Member shall ensure that access to and use of its national 
public telecommunications transport networks and services is granted on reasonable 
and non-discriminatory terms and conditions to any service supplier of any other WTO 
Member. 
3. Additional commitments on the basis of the Reference Paper on regulatory 
principles: countries negotiated a set of regulatory principles specific to the 
telecommunications' sector in order to complement the existing GATS obligations and 
disciplines These principles aim at ensuring more effective market access and national 
treatment commitments -- while accommodating different regulatory environments and 
practices worldwide. They address and set rules on a number of key issues: definitions of 
key concepts (such as 'essential facilities', 'major supplier'); prevention of anti­
competitive practices in telecommunications; interconnection obligations; universal 
service, public availability of licensing criteria; independence of the regulator; and 
allocation and use of scarce resources Out of the 69 countries, 54 undertook additional 
commitments on regulatory principles on the basis of the full Reference Paper, and 10 at 
least on parts of it 
4. Finally and most impoiiantly. Members' commitments on telecommunications services 
will be subjected to the WTO dispute settlement rules and procedures. This will 
guarantee a high level of legal security with respect to implementation of commitments. 
-^ 

ISSN 0254-1475 
COM(97) 351 final 
DOCUMENTS 
EN 16 11 
Catalogue number : CB-CO-97-344-EN-C 
ISBN 92-78-22400-6 
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