There are probably several reasons why they have not. As noted earlier, inertia has probably played a role – the survey results suggest that firms adjust their investment targets infrequently and change them slowly. So it is possible that the sharp decline in real interest rates since the global financial crisis may not yet be reflected in company hurdle rates. Uncertainty and risk aversion may also have played a role. In the survey, these were the predominant nonfinancial obstacles to investment (Chart 5). Of the third of firms who said they had invested too little over the 7  past five years, over 80% cited uncertainty as an obstacle. Other studies have also found that increased uncertainty can lead to weak investment. 8  Chart 5: Obstacles to investment over the past five years  (a)  % of businesses 90  Moderate Obstacle Major Obstacle  80 70 60 50 40 30 20 10 0 Internal funds  External funds  Uncertainty  Risk aversion  Cost of finance  Shorttermism  Skill Shortage  Low/slow returns Source: Bank of  England Finance and Investment Decisions survey. (a) Question 8: ‘If your business invested ‘too little’ over the past five years, what were the main obstacles to investing?’. (b) ‘Short-termism’ arises when companies value short-term returns above investment that typically yields returns once a long-term horizon.
16 It is a tool of both access authorization and control. Taking a closer look at the development of public services in various parts of the world, one can get an impression that e-administration is well-present in everyday life, has been wellorganized, thoroughly analyzed, and in a conscious and consistent way improves the quality of public services in highly  10  IVR – Interactive Voice Response – a phone technology that provides the user with an ability to contact a database over the phone with tone dialing function. Thus, the user can obtain requested information from the database or enter relevant data to the database. 11  “Leasership In Customer Service: New Expectations, New Experiences”, op. cit., Ain Järv presentation entitled “e-Economy and e-Government in Estonia” held on January 5, 2006 at the National Bank of Poland. 12  The system was launched in mid 2005 for the customers of the second biggest mobile telephony operator in Finland – Elis. More information can be found at www.pstm.net/article/index.php?articleid=707  13  http://My.eCitizen.gov.sg. 14  “eGovernment In the Member States of the European Union”, IDABC, November 2005. 15  “RFID tracks fever cases in Singapore hospital”, www.pstm.net/article/index.php?articleid=788. 16  “You will not enter without Chip. ID under the Skin,” Gazeta Wyborcza, February 16, 2006. 4  BIS Review 23/2006  developed countries in Europe and North America, whereas in the developing countries of Asia, a higher growth momentum and courage in implementing innovative solutions can be observed.