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Achieving the Benefits of Connectivity and Global E-Commerce. Catherine L. Mann Institute for International Economics <CLMann@IIE.com> UNCTAD Experts Meeting July 2002. NEW BUSINESSES. OLD BUSINESS. GEOGRAPHY. TIME. Old Business. New Business New Consumers, & Government. DATA.

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achieving the benefits of connectivity and global e commerce

Achieving the Benefits of Connectivity and Global E-Commerce

Catherine L. Mann

Institute for International Economics

<CLMann@IIE.com>

UNCTAD Experts Meeting

July 2002

Institute for International Economics

slide2

NEW

BUSINESSES

OLD

BUSINESS

GEOGRAPHY

TIME

Old Business

New Business

New Consumers,

& Government

DATA

  • Process: Doing old things (inventory, accounting) better
  • Product: New products & services contingent on Internet
  • Markets: Global, information rich, network benefits

Stages of Innovation and Uptake: Countries are at different points

Institute for International Economics

potential of e commerce
Potential of E-Commerce
  • Productivity and Growth
    • Real, large, and not just for the first-mover
  • Trade concentration of e-commerce
    • Global value chain, from textiles to tourism
  • Development potential
    • Rural access to health, education

A commitment to e-commerce is a commitment to growth, trade, and economic development

Institute for International Economics

complementary e commerce strategies

Structural Policies,

Networked ICTs,

Human Resources

Projects

Growth

of selected

sector

Productivity growth

from ICT-assisted

transformation

throughout

economy

Change in productivity

(potential growth of GDP)

Complementary E-commerce Strategies

Institute for International Economics

slide5

Finance

Telecom

Distribution

Legal

Access

E-Commerce Infrastructures

  • Monopoly problem
  • Technology solution
  • No credit card
  • Security
  • Int’l reserves
  • Multi-Model
  • Customs

Electronic

Commerce

  • Contracts
  • Signature
  • Certification
  • Community-based
  • Non-PC
  • Not English

Unleash private innovation to aid policy reforms.

Use the ‘e’ in e-commerce to support the ‘c’ in e-commerce

implications for trade competitiveness
Implications for Trade Competitiveness

Institute for International Economics

entrepreneurship beyond top down policy reform
Entrepreneurship:Beyond Top-Down Policy Reform
  • Build awareness at the local level
  • Promote existing community leaders & entrepreneurs
  • Access and incubators within communities serve community interests and build on community strengths
  • Government intervention shapes the environment
  • Pilot project successes can be copied
  • Projects do not become fiscal ‘sinks’
  • Technology parks incubate not ‘hot-house

Institute for International Economics

government as leader a litmus test for policy reform
Government as Leader:A Litmus Test for Policy Reform
  • Appoint a Visionary
    • Use E-commerce goal to promote domestic reforms and ensure extension of E-commerce to rural, health, education goals
  • Create an inter-agency public-private team to transform activities of gov’t
    • Start with customs, taxes, procurement for efficiency and transparency

Institute for International Economics

to conclude
To Conclude
  • Transformation is the outcome of E-commerce
    • Yields productivity benefits
    • Improves trade competitiveness
  • Structural policy reforms
    • Shape the environment where transformation takes place
    • Are tougher to do than technology policy
    • Require domestic commitment and leadership
    • Need complementary local entrepreneurship
  • Consequences of differential progress?
    • A widening productivity gap between reformers and non-reformers
    • A challenge to the goal of shared prosperity

Institute for International Economics