Information Society Watch

2000, Andrea Goldstein and David O’Connor, OECD Development Centre

In this paper the authors analyse the potential contribution of the Internet and its commercial application to the development process in poor countries. The authors focus on the opportunities e-commerce offers to small-scale entrepreneurs in developing countries and the challenges they face in exploiting e-commerce’s potential. 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. (Adapted from authors)

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