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UN Releases E-Commerce and Development Report 2003
On November 20, 2003, the United Nations Conference on Trade and Development released the 2003 edition of the E-Commerce and Development Report (ECDR 2003). The ECDR 2003 provides information about developments in the area of information and communications technologies (ICT) and e-commerce, with an emphasis on developing countries. It critically reviews the latest developments in ICT and the knowledge economy, examines their implication for developing countries and provides a basis for making decisions by policy makers in the field of ICT and e-business.
The following is a summary of the main topics covered in the ECDR 2003:
1. Recent Internet trends: access, usage and business application - The ECDR 2003 provides that, since 2001, e-business budgets have increased by as much as 11%. Most online users and shoppers are from developed countries and in areas with access to broadband. The ECDR 2003 states that the development and adoption of ICT by developing countries has been limited for many reasons including the lack of awareness of ICT, insufficient telecommunications infrastructure and Internet connectivity and expensive access. The ECDR 2003 also stresses the importance of security and protection against Internet-generated risks. It also discusses the development of web services, which allow automated interaction over the Internet between computers managing different business processes, and stresses the importance of interoperability of web services on competing platforms.
2. ICT, the Internet and Economic Performance - The ECDR 2003 suggests that we may be entering a period of an ICT-based world economy. However, it recognizes that this conclusion is based on available evidence on productivity gains from the use of ICT in a small group of developed countries and that as such, it may not be accurate. Nonetheless, the ECDR 2003 recommends that developing countries and all governments take the initiative to increase the availability and awareness of ICT and promote collaboration between the public and private sector in moving forward in the use of ICT.
3.ICT Strategies for Development - The ECDR 2003 recognizes that since the late 1990s many developing countries have launched their own national ICT programs and strategies and presents Thailand's national ICT strategy as an example. The ECDR 2003 introduces a model framework for the formulation of a national ICT strategy, outlining all concerned sectors and policy areas. It also makes a series of recommendations to governments of both developing and developed countries to play a proactive role in the development of ICT, but suggests that an ICT strategy that combines public intervention with private-sector initiative in a mutually supportive manner is the only viable option.
4. Free and Open-source Software: Implications for ICT Policy and Development - The ECDR 2003 recommends that developing countries consider adopting and facilitating the growth of free and open-source software (FOSS) as a means to bridge the digital divide. The ECDR 2003 argues that opening the source code to the public allows collaborative development in software production, easier integration with other programs, customization of the software to meet various user requirements and improvement to security issues. The ECDR 2003 also suggests that FOSS can have an anti-monopolistic effect on the IT market and industry in a country and globally. The ECDR 2003 recommends that developing countries take action and implement policies to facilitate development in this area.
5. Business Process Outsourcing Services for Economic Development - The ECDR 2003 reports that the market for business process outsourcing (BPO) is expanding, with almost half the Fortune 500 companies known to be outsourcing services. Most of these companies are located in the U.S. and in Europe. However, countries such as India, Bangladesh, Brazil, China, the Philippines, Russia, Singapore and Vietnam are also providing BPO services. The ECDR 2003 identifies a number of factors that are critical for the success of BPOs and urges developing counties to ensure that these factors are present in order to attract BPO services in their country.
6. Marketing Developing Country Agricultural Exports via the Internet - The ECDR 2003 recognizes that the use of the Internet by producers can reduce the number of intermediaries and allow producers to reach global markets at reduced transaction costs and hence improve producers' earnings. The Internet is already being used for this purpose in a number of developed countries. The ECDR 2003, however, recognizes that the use of Internet to market agricultural commodities in developing countries is relatively new and faces a number of obstacles created by market domination by large multinational companies. It urges governments, international organizations and donors to provide the support and trust required to establish online marketing ventures so as to avoid such obstacles. The ECDR 2003 also recommends the creation of cooperatives and trade associations by farmers to create the critical mass for supporting online marketing.
Apart from the above, the Report notes the challenges posed by spam to the growth of the Internet and ecommerce. In particular, it discusses the "serious dimensions" of the problems posed by spam.
For more information, see:
http://www.unctad.org/en/docs/ecdr2003_en.pdf
http://www.unctad.org/Templates/StartPage.asp?intItemID=2629&lang=1