Information Society Watch

September 2001, Hubert Schmitz, John Humphrey, Robin Mansell and Daniel Paré

This Policy Briefing is concerned with opportunities and obstacles arising from business-to-business (B2B) e-commerce. Many development institutions hope that its spread will improve trade prospects for producers in developing countries. E-commerce holds enormous promise for producers in poor countries, particularly because of easier access to the markets of rich countries and higher incomes resulting from these new trading opportunities. Many studies and policy documents, however, have underestimated the obstacles to reaping these benefits. It is not just a matter of bridging the 'digital divide' that arises from poor telecommunications infrastructure and lack of computer-related skills. Only with improvements in the transport of material goods and in the institutional arrangements that facilitate trust can e-commerce accelerate economic development (Adapted from authors).

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