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Abstract - E-COMMERCE FOR DEVELOPMENT: PROSPECTS AND POLICY ISSUES
| Guest post by: OECD Development Centre |
Article Overview: In this paper, we analyse the potential contribution of the Internet and its commercial application to the development process in poor countries. In historical perspective, the Internet has diffused at a far faster rate than earlier generations of communications technology: from 1990 to early 2000, the estimated number of Internet users grew more than tenfold to roughly 300 million, affecting the way in which people communicate with each other, acquire information, learn, do business, and interact culturally. Our particular focus is on the opportunities e-commerce offers to small-scale entrepreneurs in developing countries and the challenges they face in exploiting e-commerce’s potential.
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Free Download - BIBLIOGRAPHY - E-COMMERCE FOR DEVELOPMENT: PROSPECTS AND POLICY ISSUES By OECD Development Centre |
Abstract - E-COMMERCE FOR DEVELOPMENT: PROSPECTS AND POLICY ISSUES
In this paper, we analyse the potential contribution of the Internet and its commercial
application to the development process in poor countries. In historical perspective, the
Internet has diffused at a far faster rate than earlier generations of communications
technology: from 1990 to early 2000, the estimated number of Internet users grew more
than tenfold to roughly 300 million, affecting the way in which people communicate with
each other, acquire information, learn, do business, and interact culturally. Our particular
focus is on the opportunities e-commerce offers to small-scale entrepreneurs in developing
countries and the challenges they face in exploiting e-commerce’s potential.
There is a risk that a “digital divide” will emerge, reinforcing existing income and
wealth inequalities within and between countries. Yet, a major potential benefit of
globalisation is the freer movement of technology, including information and communication
technology (ICT), across borders. In principle, ICT can have a levelling effect, giving poor
countries and poor people access to markets, information, and other resources that would
otherwise have been inaccessible.
The evidence of real benefits is still scattered and anecdotal and the obstacles to
affordable access remain formidable, but e-commerce does present real opportunities to
small entrepreneurs in developing countries. The need to overcome infrastructural
bottlenecks in telecommunications, transport, and logistics must be addressed in parallel
with the governance aspects of e-commerce, including consumer protection, security of
transactions, privacy of records, and intellectual property. While as far as possible the
extension of the telecom and Internet infrastructure in developing countries can be left to
private investors, official development assistance (ODA) may be able to leverage private
investments. With respect to legal and regulatory issues, capacity building via ODA can
assist the participation of developing countries in negotiations and discussions that are
shaping global rules and protocols governing e-commerce. Finally, thinking “outside the
envelope” is needed with ODA, just as it is with private ventures in this age of e-novation.
There may, for example, be scope for initiatives targeted specifically at small e-ntrepreneurs
in poor countries, as with support for their individual or collective participation in Webbased
online rating schemes or with publicly-sponsored portals for small producers’ wares
to overcome barriers to trust. Information asymmetries persist in the information age.
OECD DEVELOPMENT CENTRE
Working Paper No. 164
E-COMMERCE FOR DEVELOPMENT: PROSPECTS AND POLICY ISSUES
by
Andrea Goldstein and David O’Connor
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About the Author: OECD Development Centre RSS for OECD's articles - Visit OECD's website Click here to visit OECD's website   IIIc Linking into B2B Supply Chains ECOMMERCE AND SMALL ENTREPRENEURS IIIb ECommerce and Primary Commodity Markets ECOMMERCE AND SMALL ENTREPRENEURS IIIa B2C ECommerce ECOMMERCE AND SMALL ENTREPRENEURS I INTERNET AND THE DIGITAL ECONOMY IIId ECommerce in the Service Sector ECOMMERCE AND SMALL ENTREPRENEURS |
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