PUT YOUR SIGNATURE

2011 promises to be a landmark year in the development of information and communication technology (ICT) in Azerbaijan. There are so many projects planned for implementation this year, but we will mention just one of them. 2011 will see the launch of the 'electronic signature' here - a significant project by any measure, which will give a powerful impetus to the development of the Internet, electronic documentation and 'electronic government' in general. This will have a positively impact on the work of state bodies and will make our lives much easier... But first things first.

Anticipating change

What is an electronic digital signature (EDS)? According to Wikipedia, it is an "attribute of an electronic document that allows us to establish the absence of distorted information in an electronic document from the moment the EDS is formed, and to check whether a signature belongs to the holder of the EDS key certificate. The value of the attribute is in the cryptographic transformation of information using the EDS private key."

Here's another definition: "An electronic signature means a sequence of characters produced by creating a main document with special software. If the main document is sent, a digital signature is added to it. This ensures the constancy of authorship and data in the document. The e-signature becomes invalid in the event of any change to the main document. The e-signature cannot be forged. Documents signed by hand and digitally shall be considered equivalent."

You will agree that such a definition means nothing to the man in the street, because what is important for us is what real benefits an e-signature brings, compared with the familiar hand-written signature, and how it can make our lives easier.

The main advantage of the EDS is that it will be the basis for the operation of the e-government to be created in Azerbaijan. Paper documents will gradually be replaced by electronic ones. In addition, advanced information technology will be used in the provision of a number of public services. Ideally, the e-signature will end the necessity for personal contact with officials.

Examples of the use of the EDS in Azerbaijan are already available. For example, in March 2010, the Ministry of Economic Development fully licensed the Microsoft software being used. The activities envisaged by the agreement relate to the introduction of e-governance at the ministry, which includes 'e-documentation', personnel management, finance and procurement, management of state investment etc. With the implementation of this project, the use of e-signatures in the ministry's corporative information system began in Azerbaijan for the first time.

Another example is the receipt of electronic tax declarations from taxpayers who have received a code and password from the tax authorities.

It is expected that a similar system will be introduced not only by the Ministry of Taxes, but also by the State Social Security Fund (SSSF). In particular, the fund will adopt an automated system for receiving reports from businesses and private entrepreneurs in the second quarter of this year. However, it has not yet been specified how electronic reports will be submitted to the State Social Security Fund and whether an electronic signature will be used to this end. Presumably, the Fund will give every entrepreneur a password and an access code whereby taxpayers will be able to enter their accounts, as is the case with the Ministry of Taxes. Fund staff are already generating reports electronically, but taxpayers do not have personal access to the system yet.

Moreover, the presence of the e-signature will eliminate the need for the personal presence of representatives of organizations or private entrepreneurs in registering with the State Social Security Fund and the Ministry of Taxes.

The customs authorities also anticipate changes. In the long-term, the State Customs Committee (SCC) of Azerbaijan will provide services via the internet. Currently, the SCC says, "the introduction of such services has been delayed for reasons of information security".

Nevertheless, the SCC uses the 'single window' principle when checking goods and vehicles passing through checkpoints. It also uses an 'Electronic Customs' system, currently only for customs brokers services. The State Committee plans to improve the mechanism for electronic declarations, i.e. to expand access to the programme. This will be possible once the e-signature is in wide use.

According to Aydin Aliyev, chairman of the SCC, the introduction of the e-signature is part of the 'Electronic Customs' project. He says that the introduction of the digital signature is planned for the next few years. But the introduction of electronic documentation throughout the customs system should be completed by the end of this year, or early next year.

In addition, e-signatures will also be used in the State Students Admission Commission (SSAC) as part of improvements to the system for 'Electronic applications'. According to SSAC head Maleyka Abbaszada, "as soon as the Ministry of Communications and Information Technology of Azerbaijan introduced the e-signature, the SSAC will use it in the system 'Electronic applications'."

"Thanks to the use of electronic signatures, it will no longer be necessary to approve the documents submitted by an applicant to the commission in order to issue documents," Abbaszada said.

Currently, the 'Electronic applications' system makes extensive use of the Interior Ministry's database. Data from identity cards are automatically included in applications. In future, the same principle will be used in issuing school leaving certificates. "When the Ministry of Education establishes a database for school leaving certificates, we will include it in our system," said the SSAC chief.

How much will the signature cost?

As can be seen, ministries and other government agencies aim to accelerate the introduction of the EDS and, in fact, these innovations will affect the entire structure of government. They will also affect the private sector, which is no less interested in further accelerating the processes of business registration and management, including taxation and other issues. In addition, the use of e-signatures will give a powerful impetus to the fight against corruption.

But there are several questions: when will the first e-signature be issued and how much will it cost?

In October 2008, the results of a tender for the establishment of a National Public Key Infrastructure for the application of e-signatures were made public. They were announced by the Information and Computing Centre of the Ministry of Communications and Information Technology (MCIT) in accordance with the law 'On state procurement'. The winner of the tender was a consortium of the companies Ultra, Azerin and Microsoft-Azerbaijan.

The pilot version of the 'Electronic signature' project, which is being implemented in accordance with the law 'On the electronic signature and electronic document', was launched on 14 April 2009. There was a demonstration of the possibilities of this system and the rules for the preparation and use of cards with an electronic-digital signature for legal entities and individuals. The use of cards in separate working scenarios was also demonstrated for clarity.

The creation of a national centre to issue certificates of EDS keys, including testing the system, is valued at $3 million. It is planned that issuing digital signatures will involve three centres, two of which will provide services to public and private entities, while the third will be a parent centre.

Microsoft-Azerbaijan notes that the project is nearing completion.

According to Ali Abbasov, Minister of Communications and Information Technology "the project will enter its implementation stage in the second half of 2011".

In turn, Isfandiyar Aliyev, head of the department for strategic planning and scientific potential at the MCIT, said that the infrastructure for issuing electronic-digital signatures is fully in place, but "work on developing a legal framework and valuation services for e-mail certificates is still ongoing". He said that he commercial launch of the system is scheduled for September this year.

Aliyev also noted that the issuing of digital signatures "depends on completion of the e-government portal; work on this is also ongoing".

The population will also be provided with certificates of EDS keys to exchange information and to submit applications and appeals to government agencies under the 'Electronic Government' project.

The cost of the EDS will be determined by user category, that is to say it will be different for the public, for private companies, state enterprises and government agencies.

Incidentally, in neighbouring Russia, the market value of the EDS ranges from 300 to 3,000 roubles ($10 to 100) per key per year. The lowest price is for ordinary people. In Azerbaijan, the cost of the forthcoming e-signature has not been disclosed yet, but very low and very high prices (about 80 manats for ordinary people) are mentioned. In the future, according to international practice, the EDS will be free.

But despite certain costs, we receive quite tangible benefits. According to the president of the Azerbaijan Internet Forum, Osman Gunduz, international practice shows that the introduction of e-signatures by the establishment of the practice of 'electronic documentation' will reduce costs to the population and the private sector for documentation and correspondence, including business correspondence, by approximately 20-25 per cent. That is, the introduction of the e-signature will benefit all - both the state and its people.

As can be seen, the EDS has many benefits. In the future, the system will enable the development of e-banking in the country and will become a platform for the development of e-commerce. Further, the e-signature is directly related to the issuing of biometric passports, which should appear in 2012...

Enumerating the advantages of the EDS project could take a very long time. In conclusion, we would note that in Azerbaijan today you can get information on the activities of state institutions via the Internet. The use of electronic payments for public utilities, communications services etc. is growing now. There are many other positive examples of the introduction of elements of e-government, but the fact remains: the first digital signature should have been issued in Azerbaijan back in 2009, but it was postponed to 2010. Its implementation has been delayed, although a number of CIS countries, including Russia, Ukraine, Belarus and Uzbekistan, have already introduced e-signatures. In Europe, more than 70 per cent of the population actively uses them. The EDS is widely used in Estonia and Latvia - countries that do not have oil revenues. Thus Azerbaijan, which is one of the leaders of the region's oil and gas industry and which initiates transnational projects, not only in energy but also in the IT sector, has every chance of joining the honourable list of countries in which documents are signed in a way familiar in many countries - with the help of a digital signature. In this way, Azerbaijan will further strengthen its position in the ICT sector and will push for greater integration into the global information world.