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STAT/SIAP/Y2K/6
9 June 1998

ENGLISH ONLYECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC
STATISTICAL INSTITUTE FOR ASIA AND THE PACIFIC

Workshop on the Year 2000 Problem in Computers and Strategies Issues for National Statististical Offices
18-19 June 1998
Bangkok

Universal Year 2000 Problem

SUMMARY

Serving as an introduction to the Workshop, this paper gives indications about the threat that the year 2000 problem is posing universally. The nature of the problem is summarized and its impact on basic utility services and the financial sector is discussed. The role of ESCAP in creating awareness about the year 2000 problem in the region is reviewed.

The paper does NOT cover the following basic issues that any organization challenged by the year 2000 problem must consider: Year 2000 problem fixing techniques, organizational and project management issues, legal implications and contingency planning. For an introduction on those issues, the Government Computerization Newsletter, December 1997, (http://www.unescap.org/stat/gc/gcnl/gcnl10.asp) may be consulted.

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This paper has been prepared by Mr Ilpo Survo, Programme Officer, ESCAP Statistics Division. It has been issued without formal editing. The opinions expressed in this paper do not necessarily represent the views of the United Nations ESCAP. Mention of firm names and commercial products does not imply the endorsement of the United Nations.
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Contents
  1. THE SIZE AND NATURE OF THE YEAR 2000 PROBLEM
    1. Difficulties in estimating the size of the problem
    2. The nature of the year 2000 problem
    3. Doomsday scenarios in perspective
  2. SELECTED CRITICAL ISSUES
    1. Embedded chips
    2. Electricity supply
  3. THE YEAR 2000 PROBLEM IN GLOBAL SYSTEMS
    1. Financial institutions and financial markets
    2. Telecommunications
    3. Internet
    4. Global Positioning System - a dual rollover problem
  4. ACHIEVING COMPLIANCE
  5. THE ROLE OF ESCAP
    1. Working Group of Statistical Experts
    2. Fifty-fourth session of the Commission
    3. Secretariat's own compliance

Footnotes


I. The size and nature of the Year 2000 problem (1)

a) Difficulties in estimating the size of the problem

Nobody has been able to pinpoint exactly how widespread the year 2000 problem is. It is estimated, however, that there are one trillion lines of date dependent COBOL code and 25 billion embedded chips worldwide. Of the embedded chips, 2 to 5 per cent are estimated to have the problem. It is not easy to identify which lines of code, and especially which chips are faulty. Many analysts and software vendors are ready to admit today that the problem is much worse than they initially thought. For instance Microsoft, after first denying and then maintaining silence about the existence of the year 2000 problem, recently admitted that its software products were not fully compliant(2), and opened a year 2000 Web site (http://www.microsoft.com/year2000/).

There is very little information available about the prevalence of the problem in Asia and the Pacific in general. A few quotes from a handful of countries do not permit an assessment of the overall picture. Awareness seems to be high and work well under way in Australia, Hong Kong (China), New Zealand and Singapore. On the other hand, Japan, with a very large pool of mainframes and custom-made software, has according to foreign analysts made a very slow start. Industry experts quote that the state of (achieving) compliance in Japan is one of the most worrying global year 2000 issues because of the country's importance in global markets (trade and finance). Knowing the region's aggregate exposure would hardly make a difference in resolving the problem, but might help in contingency planning and risk analysis.

Looking at overall year 2000 budgets, private enterprises seem to be taking the problem much more seriously than public sector organizations of the same size(3). Globally, the resolution of the year 2000 problem is estimated to cost $US one trillion, or significantly more than calculated only a few months ago.

(b) The nature of the yea 2000 problem

Affects all sectors. The year 2000 problem affects computer hardware, custom-made and packaged software, operating systems, telecommunications, and of course data themselves. It can shut down power plants and grids (including their backup systems(4)), prevent telecommunications, keep financial institutions closed for extended periods, disturb traffic on land, in the air and sea. Buildings can be left without heating or air conditioning, and lifts may stop(5). Life support systems and other bio-mechanical devices in hospitals can malfunction, and automated industry processes can be halted. Military equipment may malfunction. The list is long and covers practically all economic sectors.

Invisible today and unpredictable. It is estimated that the majority of modern software and equipment would not be seriously affected by the year 2000 problem. Unfortunately, nobody can tell without testing which of the systems will function correctly and which will fail. Even software and equipment manufacturers have been reluctant to give full guarantees for their own products.

Elusive. Year 2000 system failures have different impacts depending on the service or process halted or made erroneous. The detection and fixing of the problem would be fairly simple if the failures were limited to a single point per system. However, many of the year 2000 problems are likely to be multiple point failures, requiring complicated identification and testing methods. Some software, claimed to be year 2000 compliant by the supplier, have failed rigorous testing done by third parties. Only fully-verified systems can be claimed to be compliant.

Nothing new, therefore should have been routinely dealt with. It is rather surprising how large a problem year 2000 conformity is, and how late the world is acting upon it, considering that it is a result of a conscious, rational, and industry-wide decision to save storage and processing capacity(6). The year 2000 problem was encountered for the first time already decades ago in systems looking 30 years ahead. Moreover, analogous computing difficulties have occurred in the past, and will occur in the future, with other dates(7).

Time-consuming and costly to fix. Although the remedies are often technically simple, it can be time consuming to fix all the bugs in a major system. Based on a survey conducted in the United Kingdom, small organizations (less than150 employees) were estimated to require on average 18 months to become compliant, while medium (150-500 employees) and large (more than 500 employees) organizations would take 24 and 30 months respectively. It is not unusual, especially in organizations with a long history of mainframe operations, for applications to be poorly documented, for changes to be more so, and for the staff that did the coding to be no longer available.

Often no alternative fixes. It may be impossible to fix some hardware, which leaves replacement as the only option. For embedded microchips, there are no alternatives to replacement, other than bearing with the nuisance caused by malfunction. Embedded chips are (today in the United States) considered to pose a greater national risk than the computer applications and hardware.

Requires spending without increases in productivity. Achievement of year 2000 compliance increases productivity only very little, and then only because better replacements are installed. Also, long term productivity can suffer as resources are used for intensive year 2000 efforts instead of new IT development (which is deferred).

A matter of urgency. The bottom line is that there is very little time left for awareness campaigns and overtures. Talking about the problem is easy, but working on the solution can be difficult and expensive. Year 2000 projects must be started immediately, and should not be delayed by red tape or resource disputes.

Testing is crucial, difficult and demanding. Year 2000 testing has proved more difficult and more time consuming than initially thought. Most organizations spend more than half of the time of Y2K problem solving in testing, and 75 per cent is not uncommon. Perhaps the greatest difficulty is that testing can seldom be done with a live system. Testing is required to identify the problem and it must be repeated after the fixes are in place. At both ends, testing involves checking the four compliance criteria (see page 10). Especially critical, and laborious, is the future date testing, which requires that data are aged to simulate expected real data inputs (transactions, orders, etc.).

There is no shortage of material about the year 2000 problem and its solutions on the Internet. For instance, the Australian national year 2000 site (http://www.y2k.gov.au) demonstrates a systematic approach by the Government. It emphasizes, among other things, the involvement of top management echelons, systematic scheduling, commitment and progress reporting.

The fact that it is almost impossible to get insurance against year 2000 damage illustrates the uncertainty(8) involved in the year 2000 problem. Those few quoted in the United States, charge annual premiums between 25 and 33 per cent of the face value of the policy. To issue a policy in the first place, insurers want concrete evidence that the organization, its suppliers, and major clients have already undertaken substantive year 2000 remediation efforts. In other words, if no organized effort has been made, no policy can be obtained at any price. The minimum premium was quoted at $325,000 with a $500,000 deductible, and no new policies will be issued after early 1999.

(c) Doomsday scenarios in perspective

Opinions about the impact of the year 2000 problem vary broadly. Almost daily one can read that the scale of the problem is grossly exaggerated and that its impact on individuals would not go much beyond minor annoyances. On the other hand, the nervousness is clearly growing among the industry analysts and managers. That seems a logical outcome: In many organizations laborious investigations and inventories have just been completed and the abundance of work has been revealed. Achieving year 2000 compliance may not be as easy as previously thought, which gives a reason to believe that collaborators are probably in the same position.

An all-round discussion is under way on the Internet forums (Web, and Usenet group comp.software.year-2000) about the impact the year 2000 failures are going to have on various national economies and the global economy. The following are some of the frequently expressed opinions. While many major multinational conglomerates will be able to complete their conversion work in time, some bugs will go undetected. On the other hand, some enterprises will fail to achieve compliance in time. The key question is whether the number of failures will be so significant that (i) it causes a major domino effect that paralyzes economies, and (ii) makes people lose trust in the capability of society and its players (banking systems, logistical and delivery systems, electricity supply, etc.) to recover quickly. Many businesses are expected to be closed for a good part of December 1999 because of the frantic last minute efforts to get ready, or because of effort to minimize the impact on their own business. That alone would make a significant dent in 1999 output(9). Doomsday sayers also predict runs on banks' cash reserves, which stand at around 6 per cent of the stated deposits. A major stock market decline is also being predicted for the months well before the year 2000. Some predict even that public panic is inevitable towards the end of 1999.

So, how to react as an individual citizen? What is a reasonable expectation for the change of the century under current knowledge? Plenty of critical work is under way, especially in technologically advanced countries, and will have been completed in 1999. However, we will probably see delays and mistakes in some financial transactions. Some businesses will have to shorten opening hours, some will need to stay closed until emergency fixes have been put in place. Some daily goods could be temporarily in short supply. There could be local blackouts and brownouts (low voltage), but most of them will not be very long (where the power grid is well-established). Telephone calls may not be possible to all destinations, and the fixing of telephone systems may take some time. Some systems programmed to follow working weeks (e.g. backup systems) will continue to operate in a weekday mode on Saturday, 1 January 2000 and switch to the weekend mode only on Thursday, 6 January 2000 (1 January 1900 was a Monday).

Eventually, life will return to normal as the remaining year 2000 problems are fixed and faulty systems are replaced. However, for some systems and for some organizations, the problem may be fatal and force them out of business. Therefore, if anybody needs to panic, it is the management of organizations which have not even started to address their own situation.

Of mission-critical systems that must be fixed, the smallest ESCAP member and associate member economies may have none, other small ones may have tens, a large number of countries have hundreds, and the large or technologically advanced countries have thousands. Those numbers are of course much higher if pure PC applications are included. It is the last opportunity to start working on the solutions. The noncompetitive nature of year 2000 problem offers opportunities for cooperation between various organizations, including in the private sector.

II. SELECTED CRITICAL ISSUES

(a) Embedded chips

The range of equipment and systems using embedded systems is immense, and includes such domains as manufacturing and process control systems, building management, communications, office facilities, and home electronics. While the majority of embedded systems do not involve time and date in their operations, it is not always obvious which are at risk. For instance, systems may have unused date and time functions that could still cause failures. All equipment and systems which contain embedded systems must therefore be considered at risk until proved otherwise (see for instance http://www.iee.org.uk/2000risk/updates/update02.htm#apndx_k).

The Gartner Group has warned that at least 10 per cent of mission-critical systems in health care organizations will fail because of the year 2000 problem. An inventory by a major hospital in the United States found out that three out of every ten pieces of biomedical equipment would fail. Hewlett-Packard, a major medical equipment supplier, has admitted that some of its products will not work without a fix. Some of the noncompliant equipment may have been purchased as recently as in 1995.

Noncompliant chips may cause shutdowns of machinery or equipment. While it will be possible to restart many of them, some might require manufacturers' service to replace the noncompliant chips or upgrade their erasable programmable read-only memories (EPROM).

Modern cars have 10-80 embedded chips, especially in electronic engine management systems and convenience systems. However, the manufacturers are giving assurances that even the most advanced cars would not be affected as the chips measure time intervals, e.g. time passed since the previous service rather than absolute dates. A more serious impact to the car owner is thought to come from the noncompliance of invoice payment, ordering and other logistic systems of dealers and service points.

(b) Electricity supply

Electricity supply is the most crucial infrastructure service that has a relatively high exposure to the year 2000 problem. Power plants and grids contain a large number of embedded systems, and many are associated with dates. Power transmission and distribution are highly automated and controlled by computers. Nuclear plants have in addition multiple safety systems which could force a shut down if suspicious date values are recorded. Should power generation or the grid fail, buildings would be left without heating or airconditioning, water supply would cease, and telephones would most likely stop operating. It seems that many electricity generating and distribution companies (and authorities) have taken the year 2000 problem seriously by starting their preparations relatively early compared to many other sectors.

III. THE YEAR 2000 PROBLEM IN GLOBAL SYSTEMS

The secretariat would have preferred to present a picture about general year 2000 exposure and preparedness in the region. Unfortunately, information is available from only a few countries and it was too patchy for any meaningful quantitative analysis(10). Instead, selected global systems are reviewed with regard to the prevalence and impact of the problem and the state of remediation work.

(a) Financial institutions and financial markets

International (and national) financial transactions today depend on computers and networks to the extent that it is impossible to revert to manual operations if their computers or communications go down. Global financial transactions amount to several trillions of dollars a day.

The year 2000 problem poses a very significant risk of disruption to the operations of financial institutions and financial markets. Therefore, financial institutions worldwide are committing large resources to become year 2000 compliant in time. Apart from the workability of their own internal systems, they must address external systems with other financial institutions, clients, counterparts and information vendors. Awareness of the seriousness and scope of the problem is in general high, but varies considerably across markets and institutions worldwide. One of the largest challenges is the compliance of interbank or inter broker/dealer transactions which cannot be conveniently tested because of different individual remediation schedules and because of the requirement of not disrupting normal international transactions. It is therefore not surprising that many national regulatory authorities supervising and monitoring banking and securities trade have taken a strong interest in achieving sectoral compliance. Those authorities are typically providing procedural recommendations, committing their members to deadlines, demanding progress reports, and making the year 2000 inspections part of their regular examination cycles.

Since the problem could be foreseen a long time ago and can invariable be fixed given sufficient time, year 2000 failures make an ideal target for law suits. Therefore, an audit of legal implications should be a standard part of preparations and contingency planning in any organization supplying goods or providing services. Law makers have imposed especially strict liability on financial institutions, which in many circumstances can be held liable even if they are not at fault. For instance in the United States, banks are liable for checks mistakenly bounced by them, and for consequential damages suffered by the clients.

International efforts in achieving year 2000 compliance in the financial sector are being coordinated by the Joint year 2000 Council, constituted by representatives of the Basle Committee on Banking Supervision, the Committee on Payment and Settlement Systems (CPSS), the International Association of Insurance Supervisors (IAIS), and the International Organization of Securities Commissions (IOSCO). The Bank for International Settlements (BIS) provides the secretariat for the Council. (See http://www.bis.org/press/p980519.htm)

A paper by the Basle Committee on Banking Supervision, "The year 2000 - A Challenge for Financial Institutions and Bank Supervisors" (http://www.bis.org/publ/bcbs31.htm) provides an overview of issues in the banking sector, especially emphasizing the role of banking supervisors' in promoting awareness, establishing targets and benchmarks for the industry, and even in using proactive supervisory pressures. A document by the Bank of England, "Financial Sector Preparations for the year 2000" (http://www.bankofengland.co.uk/y2t0598.pdf) describes the multitude of issues that must be addressed at national level to achieve compliance in the finance sector

There is also another global coordinating body, the Global 2000 Co-ordinating Group, formed by several members of the global financial community, to facilitate efforts by the global financial community to improve the readiness of institutions to meet the challenges created by the year 2000 (http://www.global2k.com)

Following the instructions from the Bank of International Settlements, the Bank of Thailand has instructed 15 local commercial banks to tackle the year 2000 problem. The deadline for running fully compliant systems is mid-1999. That would allow a few months live testing before the turn of the century. Banks not following the established schedule would be barred from dealing with other banks around the world. It is obvious that such blacklisting would make their banking operations very difficult, and worse, could have a domino effect among enterprises throughout the country, and beyond. The Bank of Thailand says that it will try to fix its own systems by the end of 1998 and use the first six months of 1999 for testing.

(b) Telecommunications

In the telecommunication sector, the Inter Carrier Testing Subgroup of the International Telecommunication Union (ITU) year 2000 Task Force has identified the key risks as relating to inter-carrier compliance(11) (http://www.itu.org/y2k/minutes1.htm). The Subgroup will attempt to produce a definitive set of statements that will assist the ITU, its members and their customers to establish what is practicable and recommended when seeking end-to-end assurances for year 2000 compliance. The Subgroup was particularly concerned over the lack of knowledge on the year 2000 issue in developing countries, as they buy new technology but do not often have the skills even for normal maintenance. The interconnection between new and old technology is also a problem, and not only in developing countries. Issues related to radio based communications also needed to be addressed, especially in the Pacific.

(c) Internet

The year 2000 Working Group of the Internet Engineering Task Force (IETF) conducted an investigation into the year 2000 problem as it regards Internet related protocols in the following areas: "Autoconfiguration" , "Directory Services", "Disk Sharing", "Games and Chat (IRC)" ,"Information Services and File Transfer (e.g. FTP, HTTP)", "Network and Transport Layer", "Electronic Mail (SMTP, IMAP, POP, MIME, X.400 to SMTP interaction)", "Network Time Protocol", "Name Serving (DNS)", "Network Management", "News", "Real Time Services", "Routing", "Security", and "Virtual Terminal". (See details in draft http://www.ietf.org/internet-drafts/draft-ietf-2000-issue-02.txt of March 1998).

Although investigations are still not complete, the Working Group found in general little reason for concern with regards to the functionality of the protocols. A few minor cases of older implementations still using two digit years (e.g. RFC 850) were discovered, but almost all Internet protocols were given a clean bill of health. Several cases of ''period'' problems were discussed where a time field would ''roll over'' as the size of field was reached(12). Those limitations would be removed in new revisions.

The compliance of the Internet protocols does not mean that individual users, or their Internet service providers, could not experience serious problems with their hardware and software respectively (other than protocols), or that there could not be other year 2000 problems with network connections (e.g. in LANs or telecommunications). However, in the light of the year 2000 compliance of the Internet protocols (which are crucial for data interchange) it is currently thought that key parts of the Internet would remain operational at the turn of the century.

(d) Global Positioning System - a dual rollover problem

According to the United States Department of Defense, the Global Positioning System (GPS) would have malfunctioned due to year 2000 code problems without the repairs that are under way (http://208.228.76.74/gcn/1997/april14/dod.htm).

Without additional fixes, the GPS would also suffer from another date related rollover problem. The "end of week problem" would occur 132 days prior to year 2000 (at 0000 hrs UTC, 22 August 1999). It arises from the fact that the GPS time count, which started at midnight 5/6 January 1980 and which is counting weeks, will reach the ceiling number 1023 (2^10=1024) and turn to 0000. Many GPS receivers in ships and air crafts would then operate as if it was 6 January 1980, which could affect the accuracy of navigation.

It is reported that all generations of the 24 GPS satellites in orbit are unaffected by the two problems. Some satellite support system software are not year 2000 compliant and are scheduled to be replaced or repaired. The operational GPS control system operates on a legacy mainframe system and is affected by the year 2000 problem. The year 2000 repairs are expected to be completed by the end of 1998. Some handheld GPS receivers, mostly older models, are not year 2000 compliant. As there is no way to test the receivers, users are encouraged to contact the manufacturer to determine if the two problems occur in their devices and affect navigation. (See a list of manufacturers at http://www.navcen.uscg.mil/gps/geninfo/y2k/gpsmanufacturers/manufacturers.html, and some compliant receivers at http://www.laafb.af.mil/SMC/CZ/homepage/y2000/comply.htm).

IV. ACHIEVING COMPLIANCE

Exposure to the year 2000 problem depends of course on the existence of software, hardware and embedded systems that use two-digit dates. The following gives indications about the kind of organizations that have low and high exposure to the year 2000 problem.

Factors that reduce (but do not eliminate) Y2K problem exposure Indications of Y2K problem exposure
Small organization Large organization
Low rate of computerization IT intensive working environment
IT development started in full force less than five years ago Long computerization history, application development started in the 1980s or earlier
Low rate of electronic technology in buildings Modern and convenient office environment
PC-based computing Use of mainframe computers, client-server technology in general (studies show that most new mainframes run old applications)
Use of latest operating systems Old operating systems; use of several operating systems
Use of latest off-the-shelf software Custom-made applications
New PCs and LAN equipment Large stock of old PCs
Low dependence on telecommunications Business based on telecommmunications
Low rate of electronic transactions with collaborators and clients Electronic exchange of data and information
Systems are of recent development, and developed with latest development tools Applications are old and poorly documented
Staff responsible for development of systems are no longer with the organization
Haphazard and poorly documented data backup strategies and systems

Falling in the left column does not mean that the organization could not encounter year 2000 problems. The chances for the occurrence of the year 2000 problem are many. To be able to say with a high probability that the component is not affected by dates, all of the following criteria should be met (taken from http://www.iee.org.uk/2000risk/updates/update02.htm):

  1. There is no real-time clock hardware.
  2. Timers do not use a difference in dates to calculate a time.
  3. There is no battery backing for the processor or memory. This point should not be taken as sufficient evidence in itself as some chips maintain information (and potentially therefore date information) even though there is no visible means of power.
  4. There is no access to internal or external non-volatile devices, such as disks and tapes.
  5. The date is not available (known) at the Operating System layer.
  6. The application language contains no constructs or libraries that use or manipulate dates.
  7. There is no external date interface from clocks or over communications lines.
  8. The operator never sets a date in the system.
  9. The operator never sees any dates (on input or output).

If the last three conditions (g, h, i, the detection of which do not require deeper technological knowledge) are true and if the system concerned has also low potential impact on the operations of the organization, the risk from that system may be deemed low, and further investigations could be given a low priority. However, as the year 2000 problem is often invisible (especially in embedded systems), systems whose failures have potentially greater impact would need to be assigned a high testing priority.

Year 2000 conformity means that neither the performance nor the functionality is affected by dates prior to, during and after the year 2000. Full conformity means that

No value for (current) date will cause any interruption in operation.

Date-based functionality must behave consistently for dates prior to, during and after the year 2000.

In all interfaces and data storage, the century in any date must be specified either explicitly or by unambiguous algorithms or inferencing rules.

Year 2000 must be recognised as a leap year (29/2/2000 and 366 days in the year 2000).

(Source: British Standards Institution Committee BDD/1/-/3, DISC PD2000-1: A definition of year 2000 conformity requirements, http://www.iee.org.uk/2000risk/guide/year2k98.htm)

V. THE ROLE OF ESCAP

The tenth session of the Working Group of Statistical Experts (WGSE) in November 1997 was the first ESCAP meeting to consider the implications of the year 2000 problem in the region. After hearing threatening scenarios on the one hand, and large-scale resource mobilization by some advanced statistical offices on the other, the Working Group recommended taking the topic up at a higher level, the annual Commission session (held in April 1998). The current Workshop on the year 2000 Problem in Computers and Strategic Issues for National Statistical Offices is another follow-up event to the WGSE meeting. The recommendations of the WGSE and the 54th session of the Commission are extracted below for easy reference and possible recapitulation and refinement by the Workshop.

The ESCAP secretariat has been creating awareness through the Government Computerization Newsletter and its Web site. However, it does not have operational resources to assist members and associate members in a more tangible way, such as by providing advisory services or responding to individual technological questions.

(a) Working Group of Statistical Experts

The Working Group of Statistical Experts, a subsidiary body of the ESCAP Committee on Statistics, recommended at its tenth session in November 1997 that NSOs identify the implications of year 2000 failures in of any of their systems in order to prioritize which of the mission-critical applications should be fixed first. Having reviewed the serious technological and managerial challenges that all countries in the region were facing within a very short time, and having compared them to scarce resources and low awareness, especially in developing countries, the Working Group requested:

  1. The secretariat and the Bureau of the Committee on Statistics to create awareness through the Commission session in April 1998 that the year 2000 problem posed a real, serious and potentially economically hurting threat to the governments in the region and that they needed to allocate resources urgently to tackle the problem;
  2. The chairperson, secretariat and the members of the United Nations Statistical Commission from the region to raise the issue in the forthcoming session;
  3. The secretariat to create awareness of the year 2000 problem in the countries of the region by compiling and disseminating information through its publications and web site; such information should use non-technical language and be disseminated widely;
  4. The secretariat and the NSOs to facilitate the sharing of experience in the region, especially from the governments and NSOs that had tackled the problem with some success and comprehensiveness;
  5. The secretariat to approach the donor on the possibility of including the year 2000 issue on the agenda of the planned seminar on IT applications, and hold it in early 1998;
  6. The secretariat to investigate if meetings on the year 2000 issue could be held soon outside the standard project funding cycle;
  7. SIAP to investigate if it could organize a training event in early 1998 on the year 2000 issue.

The Working Group cautioned NSOs not to wait for information on other countries' experiences, since those countries were far from completing their own solutions.

(b) Fifty-fourth session of the Commission

The Commission expressed, in its fifty-fourth session in April 1998, a deep concern about the predicted disruptions that the year 2000 problem in computers and embedded chips was likely to cause at the national, regional and global levels. Noting the slow start made by many countries of the region in tackling the problem, it urged all governments to make its resolution a high priority. The Commission recognized that the problem was not restricted to statistics, but also affected infrastructure services such as electricity supply and telecommunications, as well as banking and other systems. The Commission emphasized that it was the responsibility of top level management to initiate organization-wide action to address the issue. For identification and resolution of the problem, the Commission recommended the use of multidisciplinary teams that periodically reported on progress to high-level management.

As an immediate measure, the Commission recommended that organizations demand guarantees from suppliers that all new software and equipment were year 2000 compliant. The Commission advised all organizations to make contingency plans in case of failure of their own systems or of external or foreign systems that they were increasingly dependent on. Given the urgency of the situation, the impending high work volume in fixing existing systems meant that mission-critical applications had to be given the highest priority. The Commission warned that any delays were likely to increase the modification cost and make the timely resolution of the problem very difficult, as the required skills were already in short supply.

The Commission endorsed the recommendations of the Working Group of Statistical Experts in regard to the year 2000 problem. While recognizing that the problem could only be solved at the level of each organization, the Commission encouraged all members to share their experiences in resolving the year 2000 problem and asked the secretariat to facilitate such regional cooperation.

(c) Secretariat's own compliance

The ESCAP secretariat recognizes that its own systems are not immune from the year 2000 problem, and has therefore been addressing the issue across the spectrum of its computer hardware, software and databases, telephone systems, lifts, building automation systems, card-key systems, etc. A year 2000 coordinator has been designated from among the staff of the Electronic Services Section, and technical information about testing PCs has been distributed to the divisions.

The United Nations as a whole is in transition to a comprehensive system-wide management information system (United Nations Integrated Management information System, IMIS) for accounts, payroll, personnel, etc., processing. The development of IMIS is undertaken centrally at the United Nations Headquarters, and they provide updates as required for the already-installed software at ESCAP and other major duty stations, and advise on the need to upgrade the hardware and operating systems for the host computers. The software modules already installed and those to be installed prior to the end of century are fully year 2000 compatible. The hardware on which IMIS runs is certified to be year 2000 compliant.

There is, however, some delay in the schedule with regard to the installation of the next major modules of IMIS, namely for payroll and accounts, and ESCAP's legacy payroll and accounting systems, which are known to bear the year 2000 problem, would continue in operation instead. Their COBOL code would need to be fixed, which work will be done by using in-house knowledge. The only problem is that computer programming staff are already performing many other assignments as a result of the already very tight resource situation in the ESCAP secretariat. Another concern arises from the drastic cut in ESCAP's 1998 hardware and software replacement budget, which will delay the replacement of noncompliant equipment and software.

The ESCAP Statistical Information System, a client-server system based on Sybase and Powerbuilder is said by its developer to be fully compatible, as it is fairly recent development. However, it has not yet been tested.

Footnotes:

1. The year 2000 problem in computer hardware and software and embedded chips refers to their inability to handle (read, process, write) year 2000 related date information (year, week day, leap year) correctly. The problem stems from the long-standing programming practice of using only the two last digits to represent year information.

2. MS Windows 95 and early applications made for that environment, such as MS Office 95 have minor date related problems while the very latest releases are fully compliant. Access 2.0, Word 5.0 for DOS, and Office v. 4.3 are not compliant.

3. According to Cap Gemini, budgets dedicated to resolving the year 2000 crisis in public sector organizations [in the United Kingdom] were only one fifth of those found in private organizations of comparable size.

4. Modern uninterruptible power supplies (UPS) contain a lot of software that manages the power supply process.

5. Apart from containing programs controlling the movement, lifts monitor the time passed since the last maintenance. If that period surpasses a set limit, the lift will be bought to the ground floor or basement and halted. Similar logic is used to ensure maintenance in many other devices, including medical devices.

6. That decision looks rational even today as the total cost of fixing it is estimated to be less than the benefits already gained by two-digit coding.

7. See http://www.iee.org.uk/2000risk/updates/apxb0598.htm for a long list of dates that could cause difficulties in computers and embedded systems.

8. Note the difference between uncertainty and risk. Insurances are normally available against risks whose probability can be estimated.

9. Monthly economic time series will be in great demand for 1999-2000, immediately as they become available, and long afterwards.

10. The Workshop will be in a position to make such an analysis in one sector and perhaps give some indications about governments' overall preparedness.

11. They were the element management around the transport layer, time synchronisation between networks, billing and settlement systems, IPC interfaces , C7 signalling, invoicing over the network (GSM), calling cards, GSM, and international freephone calls.

12. In particular, there are several protocols, which have 32 bit, signed integer representations of the number of seconds since January 1, 1970 which will turn negative at Tuesday, 19 January 2038, 03:14:07 hrs GMT.


   
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