STORY:
Analysts Say Brazil Behind On Y2K

Despite assurances by government, Brazil could expect computer bug problems

Rio de Janeiro is planning to handle a million partygoers on New Year's eve but analysts predict many of those parties face disruption problems related to the computer Y2K bug. Despite governmental assurances that computers operating Brazil's infrastructure will be Y2K compliant, industry analysts believe the South American country will have problems.

The GartnerGroup, a research firm specializing in computer technology is warning that municipal governments in Brazil are behind on compliance in everything from water and electricity supply to emergency services. According to press reports, the GartnerGroup gave Brazil its second highest rating out of four levels, in terms of infrastructure risks but the country poses unique problems because of its size.

"But the highest risk is the government," Lou Marcoccio, the GartnerGroup's Y2K research director tells Reuters. Marcoccio believes tax, vehicle, education, migration and employment records could be affected. The report also says remote areas could suffer basic supply problems and cities could see failures in health care, trade and public security systems.

But airlines, tour operators and the government are spinning another story. The head of Brazil's Y2K task force, Claudia Costin tells Reuters tourists have no reason to be worried and things like gas, telephones, airports, banks and electricity are going to be working. She did concede that Brazil's citizens are more likely to feel the effects of Y2K.

A spokesman for the International Airline Transportation Association says Brazil is working as hard to become compliant as any other country. The IATA expects to release a report on which airports and flight regions are Y2K complaint by September.

Source: Reuters / Detroit Free Press

DATE: 07/19/99

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