1.1 ICT Capacity Building for Small and Micro Enterprises
The AEF recognized that effective use of ICT offers a set of tools to small and micro businesses that are critical to their success in the new economy. It is in this context that the AEF approved US$719,500 to six projects, under the management of six member economies (Australia, Canada, Korea, Mexico, Thailand and the United States), designed to enhance the capacity of small and micro enterprises to use ICT more effectively. The six projects provide a total of in-kind matching contributions equivalent to US$1,140,000.

In May, the AEF made the first installment in the amount of US$215,850 to the approved projects. The projects have been conducting training programs, website building and workshops. The Foundation's progress with these projects was presented at the following APEC meetings: the 18th SME WG, the 3rd Education Ministerial Meeting, the 26th HRD WG and the 2nd Meeting of ESC. At these meetings, the Foundation's leadership and financial support in ICT capacity building of small and micro enterprises was favorably recognized, and member economies were encouraged to strengthen partnerships and cooperation with the APEC Education Foundation.

1.2 Consortium for APEC Cyber Education Cooperation (ACEC)
The third and fourth grant installments in the amount of US$184,000 were made to ACEC in January. ACEC has made significant progress in publishing Cybereducation journal(http://www.acecjournal.org), dispatching ALCoB Internet Volunteers to China and Thailand, and publishing two issues of ALCoBZine targeting K-12 teachers and educators (http://www.alcob.com/new2/new_alcob_zine/9th/alcob_zine_9th.htm). The progress of ACEC was presented at the 3rd APEC Education Ministerial Meeting and the 26th APEC HRD WG Meeting; both expressed their support of the Consortium.

2. The Fourth Meeting of the Board of Governors

The Fourth Meeting of the Board of Governors was held from January 16-17 in Jeju, Korea. Guidelines to oversee the projects approved in 2003 and the Foundation’s work program for 2004 were discussed. The meeting was chaired by Dr. Choong Yong Ahn, Chair of the BOG. Dr. Robert Gard, President Emeritus of the Monterey Institute of International Studies; Professor Zhong-lie Wang of Beijing University; and Dr. Carlos Salazar Silva, Rector of the University of Colima, took part as board members. Government officials from China, Korea and the United States participated in portions of the meeting as observers.

The Board reviewed and approved the Foundation’s work program for 2004, and agreed to attempt to strengthen the Foundation’s role within APEC and encourage APEC member economies to participate more actively in the Foundation’s activities. The Board also decided to exercise closer oversight of the Foundation’s grant programs, and agreed that its focus should continue for now to be on reducing the digital divide and promoting capacity building for disadvantaged groups.

3. Participation in the APEC Activities

3.1 The 3rd APEC Education Ministerial Meeting
At the request of the Board, Dr. Robert Gard, a Governor of the Foundation, attended the third APEC Education Ministerial meeting held in Santiago, Chile, on April 29-30. He met with government officials from member economies and exchanged views on the future course of development for the Foundation. The progress of the AEF and ACEC were favorably reflected in the Education Ministerial Joint Statement

3.2 The 26th Human Resources Development Working Group Meeting
The AEF submitted its progress report to the 26th APEC HRD WG Meeting and EdNet Meeting, held in Jeju, Korea, on May 11-14. The progress of the AEF and ACEC were favorably reflected in the HRD WG Summary Conclusions.

3.3 The 3rd Meeting of APEC Business Advisory Council (ABAC)
At the request of the Board, Dr. Robert Gard, a Governor of the Foundation, attended the third ABAC meeting held in Auckland, New Zealand, on August 18-20, to make contact with potential private sector donors. At this meeting, AEF made useful contacts with private sector executives and other ABAC members for future cooperation in fundraising as well as implementation of grant programs.

4. New Executive Director appointed

Dr. Jaebong Ro, Senior Research Fellow of the Korea Institute for International Economic Policy (KIEP), was appointed Executive Director in June. This is his second term as the Executive Director of the Foundation.