Syllabus Basic Economical Framework Towards

Syllabus · · · Basic Economical Framework Towards the Information Society Educated and skilled population Achievements of the Knowledge Economy Challenges of the Knowledge Economy

Czech Republic - Some Facts l l l Stable political situation All major political parties united behind the priority of EU accession After three years of recession the Czech economy has clearly recovered GDP rose by 3. 1% in 2001 and is expected to rise at the same pace in 2002 Growth has been fuelled by rebounding foreign direct investment, with USD 6. 3 billion invested in 1999 and 4. 6 billion in 2000

Basic Economical Framework l l l Consistent and predictable economic policy Extraordinary degree of currency stability maintained by a strong and independent central bank (Czech National Bank) since 1991 The Czech Republic received the most favourable specific currency risk rating from the Economist Intelligence Unit in the third quarter of 2000. First CEE country in the OECD Member of NATO, fully integrated into other international organisations: WTO, IMF, UNO, EBRD. NON-DISCRIMINATION l INVESTMENT PROTECTION l INTELLECTUAL PROPERTY RIGHTS PROTECTION l – signatory to the Bern, Paris, and Universal Copyright Conventions l REPATRIATION OF PROFITS

Basic Economical Framework Investment Incentives l l An investment incentives package originally approved by Czech government in April 1998 Act on Investment Incentives - in effect since May 1, 2000 – codifies, simplifies and extends the original national incentive scheme INVESTMENT INCENTIVES – COMPATIBILITY WITH THE EU DIRECTIVES l INVESTMENT INCENTIVES FOR STRATEGIC SERVICES l

Legal Environment for Investments NON-DISCRIMINATION YES! 100% FOREIGN OWNERSHIP POSSIBLE YES! FREE ENTRY AND EXIT YES! SUPPORT AND PROTECTION OF INVESTMENTS YES! DOUBLE TAXATION PREVENTION TREATIES YES! FULL CONVERTIBILITY OF CZECH CURRENCY YES! POSSIBILITY TO ACQUIRE REAL ESTATE * YES! INVESTMENT INCENTIVES YES! * THROUGH A LOCAL SUBSIDIARY

Towards the Information Society l 1998 -2000: First Steps towards Coordination of Information and Communication Policy – October 98 - Government Council for State Information Policy – April 99 - National Telecommunications Policy (NTP) – May 99 - State Information Policy (SIP) – May 2000 - SIP Action Plan (AP SIP) – June 2001 - e. Europe+ adopted by government

SIP - Eight Priority Areas I. Information/Digital Literacy II. IT-based Democracy III. Development of Public Administration Information Systems IV. Communications Infrastructure V. Trustworthiness and Security of Information Systems and Personal Data Protection VI. Electronic Commerce VII. Transparent Economic Environment VIII. The Information Society: Stable and Safe

SIP - Legal Framework l l l Personal Data Protection Act Free Access to Information Act Telecommunications Act Electronic Signature Act Public Administration Information Systems Act “The Czech Republic has made good legislative progress in the field of the Information Society. Acts on Technical Products Requirements, Public Administration Information Systems and Electronic Signatures have been in force since 2000, with further alignment to be completed upon accession. Future efforts should concentrate on the effective implementation of the adopted laws and on the transposition of the electronic commerce directive. Certain elements of the electronic signatures law will have to be reviewed. The Office for Personal Data Protection will be in charge of the accreditation and supervision of certification authorities”. EU Commission 2001 Report

Situation in Telecomunications Main processes: v Completion of full liberalization v Strengthening of regulation (Independent National Regulatory Authority) v Full implementation of ONP v Privatisation of government-held property shares of telecommunications operators v Universal service obligation

Educated and skilled population

Educated and skilled population Status by day 31. 12. 2000 The share of state budget expenditures for education system

Educated and skilled population CZECH REPUBLIC: THE SKILLS HUB OF CENTRAL EUROPE l IT SKILLS l LANGUAGE SKILLS l l The Czech education system pays particular attention to language skills. The proportion of secondary-level students studying English is as great in the vocational stream as in the academic stream, and high by European levels at 95 -96%. Many school students also learn German. The Czechs have a secondary level completion rate second only to the USA. In 1999 88% of the Czech labour forces aged 24 -64 had completed higher secondary education, compared to an OECD average of 65%. General education in the Czech Republic rivals the best in the world. The 13 -year-old students attained the best test results in Europe in both mathematics and science in 1995, and in 1998 the proportion of the adult population that had completed secondary education was the highest in Europe.

TECHNOLOGY ACHIEVEMENT Patents granted to residents Internet hosts Mean years of schooling Mobile subscribers (per mil. people) 1998 people) (per 1, 000 people) 2000 (age 15 and above) 2000 (per 1, 000 people) 1999 USA 289 179. 1 12 312 Germany 235 41. 2 10. 2 286 Spain 42 21 7. 3 312 Italy 13 30. 4 7. 2 528 Czech Rep. 28 25 9. 5 189 Hungary 26 21. 2 9. 1 162 Slovakia 24 10. 2 9. 3 171 Greece (. ) 16. 4 8. 7 311 Portugal 6 17. 7 5. 9 468 Poland 30 11. 4 9. 8 102 Country Source: UN Human Development Report 2001, 10 July 2001

The Czech Republic‘s attainments The ECDL l European Computer Driving Licence as an internationally recognized standard of competence for serving in an office Czech Technology Parks l l l Brno – providing support for machinery industry, equipped with modern business premises for technology companies in a business park environment Ostrava – light industry background Prague – establishment under way; will provide institutional support for technology transfers Inflow of knowledge into the CR l l l Participation on international programmes Distance learning programmes Increasing interest in MBA studies, Master and Doctoral programmes Short term attachments of our employees in abroad Consultancies and supra-national firms employing Czech experts Other successes l l Distance learning project 150 PC‘s Technology Centre of the Czech Academy of Sciences - co-operation with SMEs Certificate authorities for e-signatures CESNET

Challenges of the Knowledge Economy Specific strengths of the CR on its way to becoming globally competitive in the knowledge economy: l l l l high proportion of value-added production high investments into ICT infrastructure good potential of skilled people high volume of FDI The greatest weaknesses of the CR: some islands of the KE are ready nation-wide knowledge strategy development missing co-ordination of the KE support activities missing

Challenges of the Knowledge Economy The most difficult challenges the CR faces in the building of the knowledge-based economy: low perception of the value knowledge in all segments l overestimation of the market positioning (by our firms) l low participation on R&D by private companies (SME’s) l low co-operation between academic, entrepreneurial and government sectors l

Towards the knowledge strategy l l l l Restructure and downsize the academies and institutes, and bring in foreign partners De-regulate bureaucratic licensing and taxation machinery to encourage foreign (and domestic) investment Improve legal and regulatory framework affecting business relations, intellectual property rights Private state-owned enterprises operating in the knowledge and technology sector De-monopolize communications sector Introduce computers and Internet connection to schools in rural areas (through the post office), develop rural and urban tele-centers Establish e-government projects Reform the higher education sector; also through distance learning. in progress YES

Thank you for your attention.