T.R.A.D.E. Working Papers 4

EXECUTIVE SUMMARY (excerpt)

The double face of Electronic Commerce, one promising and the other threatening, is certain to become a part of the economic life of all developing countries as humanity finds itself catapulted into the world of global electronic networks. Since the achievement and maintenance of equitable economic growth is an integral part of the development strategies of these countries, the impact of eCommerce, both positive and negative, is a key policy issue. Developing countries need to understand, assess, assimilate and use this technology to their gain, while protecting their basic interests and guarding against the possible ills.

As eCommerce growth becomes more and more significant, developing countries will need not just to understand, but in fact to engage in it. Not only for realizing its potential of growth for their trade and industry but also as a means of survival in the new world of eCommerce-based trade and business. Their ability to do so will depend on several factors, most important of which will be their infrastructure, both physical (the telecommunication network), as well as the financial and legal framework, including a business and trade environment conducive to eCommerce. It will also depend on the availability and price of hardware (computers, routers, switches etc.) and software, as well as the human resource and education standards of the country.

ECommerce is a useful tool for the transfer of information as well as for commercial transactions. These two main functions raise several different issues of pricing, taxation, quality and standards. This paper seeks to address several of the important implications from the perspective of the South.

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