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Designing e-Government for the Poor - Tanzania Development ...

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48<br />

Public key infrastructure initiatives <strong>for</strong> e-Asia<br />

Figure 7. Methods of identification and au<strong>the</strong>ntication<br />

best method of ensuring identification and au<strong>the</strong>ntication. Mr. Hwangbo<br />

provided a brief overview of <strong>the</strong> operation mechanism of a PKI system. He<br />

said that in <strong>the</strong> past, encryption was done through algorithms. However,<br />

algorithm method is not possible <strong>for</strong> cyber transactions. There<strong>for</strong>e, current<br />

encryption mechanisms are based on a key system. In <strong>the</strong> case of <strong>the</strong><br />

Republic of Korea, PKI is divided into two systems: a government PKI,<br />

and national PKI. Such a system includes a certificate authority system that<br />

provides accredited digital certificates ensuring <strong>the</strong> safety of online transactions.<br />

Mr. Hwangbo emphasized that although digital certificate structure<br />

may be different depending on <strong>the</strong> situation of individual country, <strong>the</strong><br />

acceptance of PKI is a must in <strong>the</strong> era of in<strong>for</strong>mation society. However,<br />

successful implementation of a PKI system requires not only technology,<br />

but necessitates legislation and appropriate applications.<br />

Due to time limitations, Mr. Hwangbo very briefly discussed cyber<br />

taxation in e-Asia. He said that <strong>the</strong> Internet has had a significant impact on<br />

tax administration, providing opportunities as well challenges. The challenges<br />

are difficulty of identity, obscure jurisdiction, difficulty of proof,<br />

obscure tax point, move to tax haven, and offshore banking. Such challenges<br />

create a serious dilemma in which tax evasion results in financial<br />

losses <strong>for</strong> a country. In conclusion, Mr. Hwangbo said that it is necessary<br />

to collaborate among Asian countries. In collaboration, proposals <strong>for</strong> relevant<br />

technology should be submitted to <strong>the</strong> Committee on Fiscal Affairs<br />

of OECD. Lastly, test-beds of Asian countries <strong>for</strong> global electronic commerce<br />

need to be established.

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