Table 1. Y2K problem-resolving efforts by selected governments*

9. Expenditure on the Y2K problem (see table 2) indicates that both awareness creation work and remediation efforts peaked in 1999, although many governments had started work in 1998 or earlier. The distribution of efforts (in person years) by year was consistent with the reported expenditure. The budget figures for the year 2000 indicate that remediation work was expected to continue in many countries, presumably targeting non-critical systems.
10. Among the governments that provided information on their expenditure and budgets, Australia spent the highest amount on resolving the Y2K problem, followed by Turkey and Hong Kong, China. The data for many countries are not available.
11. The expenditure figures in table 2, as well as the measures of effort exerted shown in table 1, must be interpreted and compared with great caution. Some governments indicated that they did not have a separate budget for the Y2K problem and that the costs were absorbed within existing allocations, typically from annual information technology budgets. Comparison is difficult also because of the differences in treating the cost of fixing non-mission critical systems and the replacement of equipment that was already at the end of its life cycle.

12. The ESCAP questionnaire also asked respondents to relate the Y2K expenditure or budget to the total annual information technology budget. That information was provided by a few governments, but again the figures are not comparable due to varying budgeting methods and to differing concepts as to what constituted Y2K expenditure. For instance, if the information technology budget was small and replacement was the main mode of remediation, the ratio could easily be 100 per cent or higher. The Government of India had given an indication to departments to spend 1-3 per cent of their annual information technology budget on Y2K remediation. Overall, the information provided was not considered suitable for tabulation.

13. In spite of a high level of advance attention, problems were encountered in critical sectors, such as nuclear power plants, the power grid, telephone systems, and banking services and equipment. However, none of the problems was classified as major. The embedded chips caused far fewer problems than anticipated. Consequently, the national emergency centres that had been set up by many governments to monitor the rollover had very little to report. Annex III contains a list of minor problems reported in the ESCAP survey and in other sources. It is likely that the list has a proportionate overrepresentation of Y2K problems in sectors that were subject to prudent monitoring of the incidents.
14. The most typical problem was equipment or software displaying or printing a wrong year for the year 2000, but without any impact on the core functionality of the system. Many organizations were prepared for such incidents and did not consider them as problems. Many system failures or malfunctions were reported without a detailed identification or description of rectification of the problem. In some cases, however, it was indicated that the problem could be fixed quickly.

III. CONCLUSIONS AND ACTION BY THE COMMISSION

15. During the first months of the new century only minor problems were reported and the likelihood of major problems appearing remains small. The governments in the ESCAP region can congratulate themselves for passing the Y2K challenge. The remediation of less important systems continues in many countries. In addition, the systems that were kept in operation by backdating the system clock or that were fixed temporarily will require attention in the future.
16. Although the existence of two-digit years in programming was known in advance, it was difficult to predict how much the remediation would eventually cost. For instance, it was widely anticipated that the unit cost of Y2K programming would rise significantly towards the end of 1999 due to a shortage of competent programmers. In reality, the cost of fixing a line of code dropped because of the emergence of automated tools and alternative fixing methods.
17. The full cost of fixing the Y2K problem will never be known because of estimation difficulties. Apart from the direct programming and replacement expenditure, a comprehensive analysis would need to consider opportunity costs. What were the costs incurred because of non-optimal and premature timing of equipment or software replacement? Were costly mistakes made because of the last minute rush to become Y2K-ready? Would the technological improvements that had to be deferred because of the need to concentrate on Y2K work have made better economic sense? Were the efforts in creating awareness proportionate to the problem? These and other questions would need to be answered before a full analysis of Y2K costs can be made.

18. The eventual success in overcoming the Y2K problem can be attributed to the substantial and persistent efforts to rectify critical systems in countries and sectors that were the most vulnerable. As expected, many small and technologically less advanced members and associate members were largely spared Y2K problems because their computing environments were PC-based and relatively new. Moreover, automation had not penetrated into all aspects of the production and distribution chain.

19. The costs and efforts involved in tackling the Y2K problem, considerable though they certainly were, have been, in the secretariat's view, outweighed by several positive results of a long-term nature:

(a) Better and more productive information technology systems have been put in place. In addition, the importance of setting strict deadlines for information technology projects and of clearly documenting information technology systems was underlined;

(b) Better information technology management tools have been developed. For example, information technology inventory records have been updated, forming a basis for continuous record keeping. The contingency planning experience gained with Y2K will be useful for other types of emergencies. Critical infrastructure protection is likely to receive higher priority than before. Moreover, more attention will almost certainly be paid to careful evaluation during procurement of hardware and software;

(c) Top management became involved in critical information technology issues. Chief executives have been made more aware of the integral role that information technology plays in the organization. Many were for the first time forced to respond to related challenges in a systematic way, having to quantify their information technology problems and their probable impact. The efficient management of high-technology organizational assets was also brought into sharp focus;

(d) Regulatory and monitoring authorities were forced to pay attention to how information is generated, stored, transmitted and protected;

(e) The benefits of information sharing through the Internet were proven regionally and globally.

20. In the light of the small number of Y2K failures and the sharply reduced interest among member and associate member governments in the topic as evidenced by the response to the secretariat's questionnaire, the secretariat proposes that the Commission reconsider the need to follow up on the Y2K issue with a further report to its fifty-seventh session in 2001. The Commission may, instead, wish the secretariat to devote the modest resources that would be utilized for this task to activities which would capitalize on some of the more positive outcomes of the Y2K episode, for the benefit of the developing countries of the region.

 

Annex I

EXCERPT FROM COMMISSION RESOLUTION 55/3

 

The Economic and Social Commission for Asia and the Pacific,

1. Expresses appreciation of the initiative of the Philippines in promoting international cooperation in information technology by sponsoring the Second Global Year 2000 Summit at Manila in March 1999;

2. Urges all members and associate members to take early and effective action to bring their countries to the highest possible level of year 2000 (Y2K) readiness, not only for their own benefit but also to minimize adverse Y2K effects on vital sectors of other countries;

3. Calls upon members and associate members to practise open disclosure policies and enhance the sharing of information across borders with regard to Y2K readiness, best practices, lessons learned, embedded systems, and Y2K failures and successes;

4. Appeals to all members and associate members to forge regional and global cooperation to ensure a timely and effective response to the Y2K challenge and to work together to address the threats that the problem poses globally;

5. Urges all member States to expedite the remediation of their systems to guarantee the continued availability of basic infrastructure services, to use public information channels to urge the private sector to become Y2K-compliant and to disclose its readiness status, and to develop contingency plans to address the possibility of large-scale failures in the public and private sectors;

6. Calls upon all concerned United Nations bodies and specialized agencies, intergovernmental and non-governmental organizations and other members of civil society to enhance and combine their efforts to support regional and national Y2K initiatives;

7. Calls upon the World Bank, the Asian Development Bank and other multilateral organizations to review and increase their level of combined support for national and regional Y2K efforts;

8. Requests the Executive Secretary to report to the Commission annually until the fifty-seventh session on the progress achieved and the difficulties encountered by members and associate members in addressing the Y2K problem;

9. Further requests the Executive Secretary to seek extrabudgetary resources:

(a) To monitor closely actual and potential sources of funding to support the efforts of the developing countries, in particular the least developed and landlocked countries, and the economies in transition, to address the Y2K problem and to facilitate the dissemination of relevant information on those funding possibilities to members and associate members;

(b) To continue to facilitate the exchange of national experience on the Y2K problem, and the sharing of information and expertise available with various members and associate members, including through the use of the Internet, before, on and beyond 1 January 2000;

(c) To collaborate fully with all concerned United Nations bodies and specialized agencies, and intergovernmental and non-governmental organizations, in facilitating the provision of support and technical assistance for members and associate members that find difficulty in addressing the Y2K problem;

(d) To ascertain from United Nations bodies and specialized agencies, by 30 September 1999, the state of Y2K readiness in the region in their respective areas of competence.

Annex II

CENTRAL GOVERNMENT SUPPORT TO THE PRIVATE SECTOR IN ADDRESSING THE YEAR 2000 PROBLEM

Country/area	Form of government support to the private sector
Armenia	Information awareness, methodologies, coordination.
Australia	Established a year 2000 (Y2K) committee to develop a national strategy that primarily focused on small and medium-sized enterprises (SMEs), and funded it with $A 9.75 million over 2.5 years.
Bangladesh	Private sector organizations were invited to the national Y2K advisory committee and its working groups. Private sector organizations were included in a survey identifying information technology resources and Y2K problems. Awareness campaigns were directed to the private sector in the public media. Information and advisory services were provided to private organizations, especially in critical sectors. A list of vulnerable organizations (private and public) was prepared.
Bhutan	Awareness campaign directed to the private sector.
Brunei Darussalam	Sharing of information and best practices with the private sector and ensuring that it is well prepared for Y2K. Establishing a national operations centre for monitoring any problems in the private and public sectors during the Y2K and leap year rollover dates.
China	Organized national Y2K conferences, distributed Y2K materials and provided consulting services.
Hong Kong, China	Close liaison with non-governmental organizations providing essential services to the public. Publicity activities urging local businesses to take early action. Worked closely with a non-profit industry support organization (Hong Kong Productivity Council) that was giving concrete assistance to SMEs in tackling the problem.
India	Private sector business and industry associations were involved in the deliberations of the national Y2K action force and were asked to submit compliance status reports of their corporate members.
Islamic Republic of Iran	Help desk project set up to support private sector enterprises.
Japan	Publicity campaigns using posters, publications, the Internet and the mass media. Consultation centres established nationwide. Low interest financing, debt guarantees, tax measures for SMEs. Stand-by specialists were available for SMEs at the turn of the century in case of emergency. Besides information, the regional centres had legal advice available for SMEs for disputes that might arise from Y2K problems.
Macao, China	Y2K information centre was established to help SMEs tackle Y2K problems.
Maldives	Information disseminated to the private sector. Assistance provided in problem verification and compliance certification.
Pakistan	Private sector organizations invited national seminars, workshops and other activities.
Republic of Korea	Tax deductions on assessment, testing and remediation costs. Financial support to SMEs for Y2K problem-solving. Diagnostic and technical support through field visits to 20,000 SMEs.
Sri Lanka	Meetings and workshops were held with the private sector. Documentaries for television covering the Y2K problem in key sectors were produced and broadcasted in three languages. Sector groups analysed critical industries, monitored remediation progress and assisted in preparing contingency plans. A national help centre was established.
Thailand	Technical seminars were organized and information disseminated. Short-term advisory consultants were made available in some sectors.
Turkey	A task force was created for monitoring the progress in private enterprises.

________________

Source: ESCAP survey on the year 2000 problems in computers and embedded systems: preparations and incidents.

Annex III

YEAR 2000 FAILURES IN THE ESCAP REGION

Country/area	Glitch or failure
Armenia	Visa issuing delayed because of network problems. Problems in generating monthly summary reports in the Revenue Department.
Australia	Telephone outages in southern Australia. Payroll calculated from 1900 at Sybiz Software. PC problems reported by Microsoft Australia. Electric train ticket sales equipment in Sydney registered wrong date. Public transport ticketing system failed in Tasmania and South Australia.
China	A few mid to small businesses' financial systems experienced failure. One hotel in Qingdao reported a problem in its control system for room assignment. Taxi meter failures. ATMs would not dispense cash and had incorrect balance displays. Database problems at the Anning Printing Plant. Savings bank electronic time keeping board malfunctions. Reporting/query system malfunctions at newspaper offices. Date display malfunctions at Sino-Japanese Friendship Hospital. Halian Department Store system malfunctions. State Meteorological Administration computerized monitoring system failed. Peoples Bank internal and interbank email and credit card system failures. Internet time display error at the Ministry of Railways. A short time malfunction of a Global Positioning Systems (GPS) system at a sea broadcasting station. An airline freight system printed date as year 1900.
Hong Kong, China	Wrong date given for a file created in a local area network (LAN) after the millennium rollover; year shown as 2028 instead of 2000. 'Breath-testing' instruments, 18 in total, failed to provide test results after the new year. Improper calculations in Hong Kong Futures Exchange options pricing system. Hospital blood sample analyser equipment date stamp problems. Office automation problems within the Agriculture and Fisheries Department. Miscellaneous glitches reported by about 10 small businesses.
Indonesia	Bank of Indonesia command centre computer malfunctions. Bank Niaga ATMs deny access to customers. Mobile phone billing system failures.
Islamic Republic of Iran	In a hospital in Tabriz Province, a blood gas analyser which was not switched off before rollover changed to 1900 and did not function properly. Embedded system failure in the industry sector.
Japan	Shika Nuclear Power Plant's non-power related computer glitch in its weather monitoring and its reporting system. Glitch in the system providing weather information for small planes/helicopters. Japanese Railway ticket distributing system problems. Japanese electronics firms experienced 50 different problems in various business and plant computer systems. Bicycle parking lot machines malfunction. Fire and emergency systems failures. Government vehicle tax computers malfunctioned. Government residency computers malfunctioned. JR Sakaide Station entrance gate system did not recognize employee passes. Noise monitoring system at New Tokyo International Airport lost data. Tokushima University’s bone density measuring device miscalculated patient ages. Sewage works device malfunction. NTT Mobil Communications phones deleted messages. Matsushita Communications registered mail software malfunctioned. IDO Corporation mobile phones did not display dates. Hokuriku Electric Power Company’s emergency data transmission system malfunctions. Tokyo Electric Power Company experienced problems in data storage and processing systems, detectors, position control rods, and test radiation analysis system. Toyota Motor Company navigation devices malfunction. Ten banks and credit cooperatives experienced bankbook date and ATM data display problems. Onagawa Nuclear Plant electric substation failure. Rokkashomura Nuclear Waste Storage Facility management and monitoring system date malfunction. Twelve small brokerages experience glitches in record-keeping systems. Tokyo Stock Exchange experienced errors in back office system. Tohoku Electric Power Co. gauge to measure sea water problems failed.
Kazakhstan	Ekibastuz Hydroelectric Power Station-2 technology processes have been handled manually since 1 January 2000 because the non-Y2K compliant computers had not been replaced due to the absence of funds. Kazakh Railway Company problems which can be fixed by replacing 20 PCs. In one of the government buildings a Y2K problem occurred in the system that controls air conditioning, elevators, etc. After resetting the date to 1999 the system has been functioning normally.
Macao, China	Vehicle speeding detection system misinterpreted year 2000. Fax on demand system misinterpreted year 2000. Auto-transmission of data failed in an air quality detection system.
Malaysia	Failure of building automation system in the Sibu Hospital and Muar Hospital, causing failure of the air handling unit. Machine in Tung Shin Hospital reported to face problem with dates but machine still functioning. Failure of patient registration system in Machang Hospital. Manual system utilized. Ultrasound machine (model Hitachi EUB 200) in Sultanah Aminah Hospital and (model Aloka) in Muar Hospital faced problem with dates. Blood gas analyser, model Chiron 855-in Alor Setar Hospital printed wrong date during rollover. Blood pressure monitor in Bintulu Hospital showed wrong date and time, though in working order. Several land offices experienced problems in billing system software. Several gas pump display panels displayed wrong dates. Penang Province satellite television went out.
Mongolia	A few railroad ticket counters with outdated computer systems could not function on 3 January 2000.
New Zealand	Mobile computer units in ambulances failed. Auckland University database could not be reset. Unspecified water pumping station problems. Miscellaneous minor power outages in Invercargill and Alexandria. Police computer system outage. Air traffic control system radars were operating, but interconnections were down. Bus pass validating machines would not accept passes. Auckland Airport web site date anomalies.
Pakistan	Computer system malfunction at the Karachi Development Authority. Electric power authority experienced cascading failures in transmission lines in Multan, Faisalabad, Tarbela, and Mangla. Date malfunctions at the Islamabad Stock Exchange.
Papua New Guinea	Police operation command system unable to report police cases online.
Philippines	A few cases of fax machines or other non-critical electronic equipment displaying the wrong date but otherwise functioning well.
Republic of Korea	Apartment building reported heat and hot water loss due to Y2K. One type of medical device (density measurement) failed. Aluminium manufacturing plant affected by Y2K. Graduate certificates dated 1900 at Korea University. Video rental store computers could not accept 2000 dates. Hotel reservation systems malfunction. Production control data exchange problems at Ch’angwon Industrial Complex aluminium manufacturing plant. Bone marrow equipment and patient registration systems malfunctioned at Ansan Severance Hospital and Dongshin Hospital. Automatic broadcast system failed at Bukshim Cable TV requiring manual intervention. Trial summons dated 1900 at Provincial Court.
Russian Federation	Nuclear power plant management system malfunctions. Government system email disruptions. Telephone switch failure in the central Sverdlovsk region and the city of Orenburg. Boiler pump failure caused 8,900 people in the far east to lose heat. Operational control system malfunction in Lenergo Power’s central control room.
Sri Lanka	A hospital electrocardiogram monitoring unit changed its date to 1994 with the rollover. The analysing part of the unit is not compliant and cannot be used. Blood gas analysers and intensive care unit equipment failed at Kandy Hospital. Supermarket point of sale electronic funds transfer system malfunctioned. Bar code scanners not operating correctly at cashing counters.
Tajikistan	Miscellaneous government computer system failures.
Thailand	Meteorological Department satellite date anomalies. Unspecified computer system failures at Loei Hospital. Power plant date malfunctions. Analysis tool displayed erroneous date at Rama Hospital. Tele-banking and cash management system data feed problems at Siam Commercial Bank. Medical equipment and telephone systems printing reports with wrong dates.
Turkey	Some minor Y2K glitches in the health sector were reported, including blood sample analysing machine, patient monitoring equipment, ultrasonic device, tomography device and dialysis machine in a few hospitals. Miscellaneous Y2K glitches experienced by several manufacturing companies. Some cash registers showing the year 1900.
Uzbekistan	Consular department computer failure at Tashkent Airport. Server problem at the Ministry of Interior.
Viet Nam	Isolated telephone switching problems. Small and medium-sized enterprises experienced problems with Novell Net-ware 4.1 operating system.

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Sources: "Y2K aftermath – Crisis averted. Final Committee report. Summary of Committee findings 29 February 2000". The United States Senate Special Committee on the Year 2000 Technology Problem <http://www.senate.gov/~y2k/documents/final.pdf>; "International Y2K glitch report". International Y2K Cooperation Center <http://www.iy2kcc.org/Glitches2000.htm>; and "ESCAP survey on the year 2000 problems in computers and embedded systems: preparations and incidents".