MILLENNIUM BUG: OECD WARNS THERE ARE STILL PROBLEMS.

Summary:In a new report released on October 1, the Organisation for Economic Co-operation and Development warns of global economic vulnerabilities to the Year 2000 problem, and urges governments to play a stronger role in promoting international co-operation, awareness, and action to deal with it. Nearly every sector of the economy is vulnerable to Year 2000 malfunctions, but the health care sector, small and medium-sized enterprises and some parts of government itself are particular areas of concern.

The Year 2000 problem stems from computer systems and billions of embedded chips that recognise only the last two digits of any year, leading to misinterpretation of the Year 2000 as 1900. Misreading of the date could lead to data loss or malfunctioning of computers and other electronic devices.

The report, "The Year 2000 problem: Impacts and Actions', highlights the potential economic and sectoral impacts of the "bug", and describes actions that governments are taking to deal with it. In particular, it calls on governments to play a stronger role in addressing the problem economy-wide, and to accelerate their own preparations within the public sector.

Uncertain impact.

Though the extent of disruptions is uncertain, available studies of the costs of achieving compliance, of potential macroeconomic effects, and of the impacts upon the sectors most likely to be affected all indicate that the millennium bug will have significant negative economic impacts in the short term.

Nearly all OECD countries have launched initiatives, created task forces or commissions, or assigned responsibilities within government for addressing the problem. According...