Healthcare systems and government services are at the greatest risk of being hit by the Y2K computer bug, according to a United Nations-created organisation working with Y2K co-ordinators around the world.

The computer glitch results from the practice of storing dates in two-digit form on older computers to save memory space. Unfortunately, some computers might interpret '00' as 1900 instead of 2000, causing system failure or unpredictable behaviour.

There "remains a medium to high risk that localised Y2K-caused errors could adversely affect public health and safety in the early days of January", according to a report on global preparedness by the International Y2K Co-operation Centre.

The health and hospital sector has been slow to address Y2K, according to the report by the International Y2K Co-operation Centre, and "this risk is most pronounced in developing countries and in smaller organisations worldwide".

Limited damage

But overall, the report gave a cautiously optimistic assessment of the world's preparedness.

Computer systems around the world will suffer many errors due to the Y2K computer glitch, but the impact of these errors will be "moderate", according to the report.

"Around the world, the great majority of organisations - including businesses and governments - will experience only limited damage from the Y2K bug," said Bruce W. McConnell, director of the International Y2K Co-operation Centre.

"There will be many Y2K-caused errors, (but) the combined negative effect of these errors will be moderate," Mr McConnell said.

The centre's report predicts few serious Y2K-caused effects in energy, telecommunications, finance, transportation, customs and immigration, food, and water infrastructures.

The report also said that most national defence systems have been fixed and tested around the world, and the report said that there was no threat of an accidental launch of nuclear weapons.

Emergency aid ready

But due to the widespread nature of the problem, countries are preparing for the problem as they would a serious emergency, and "some things will go wrong", the report concluded.

Most of these problems will be dealt with at the national or regional level, but some countries might be overwhelmed.

The World Bank and the United Nations Development Program (UNDP), in cooperation with the G8 and other donor nations, are setting up a network of experts in key sectors to assist national Y2K coordinators in assessing the problem.

The UN is also set to help countries that require long term or expensive technical assistance to obtain funding and provide humanitarian assistance as needed.