e commerce in 3R

e-commerce in three landlocked nations*: 

e-commerce in three landlocked nations* Michael Minges minges@itu.int International Telecommunication Union INET 2000 Developing Countries Networking Symposium 18 July 2000, Yokohama-Japan * The views expressed are those of the author and may not necessarily reflect the opinions of the ITU, its members or the countries profiled in this presentation.

Topics: 

Topics Why e-commerce for developing countries Barriers to e-commerce in developing countries What kind of e-commerce for developing countries e-Strategies

Internet Case Studies: 

Internet Case Studies ITU project to examine diffusion of Internet in developing countries www.itu.int/ti/casestudies

Why e-commerce for developing nations?: 

Why e-commerce for developing nations? Increase sales, generate hard currency, boost employment and welfare Gain expertise in information technology, reduce brain drain & urbanization Lead to better business practices, enhance transparency & efficiency Dhaka Shawl Producer in Nepal collects: US$ 6.60 Consumer in Nepal pays: US$ 11.00 Consumer in USA pays: US$ 77.00 Source: ICIMOD.

Barriers to e-commerce: 

Barriers to e-commerce Economic, social, linguistic Infrastructure Market size e-Business costs Source: World Bank.

Language & Literacy: 

Language & Literacy Source: Ethnologue www.sil.org/ethnologue, UNDP <www.undp.org/hdro>.

Infrastructure: 

Infrastructure

Internet market: 

Internet market

Setting up a web business: 

Setting up a web business

Payment : 

Payment Limited use of credit cards for B2C: Nepal: High income level for credit card, only good in Nepal and India Uganda: Cash-based society Bolivia: Around 200’000 cards (2% of population) Local sites cannot process credit cards

What to sell?: 

What to sell? Understand e-commerce categories ‘Show me the money’ Foreigners Expatriates Develop areas where there are natural advantages Local products and services Travel

e-commerce dimensions: 

e-commerce dimensions

Tourism: 

Tourism * 1998. Source: World Tourism Organization.

Mike’s B2C tourism e-commerce experiences: 

Mike’s B2C tourism e-commerce experiences Hard to locate information Pricing not transparent Could not place reservation from web form ‘Clunky’ compared to big hotel chain websites www.nilehotel.com

Bolivian B2C: 

Bolivian B2C Many developing countries suffer from e-commerce logistical deficiences such as billing & shipping A big barrier is the lack of support for credit card payment One way around this hurdle is to host the site overseas For example Boliva Mall which sells local products aimed at expatriates as well as services such as local flower delivery

Gurkhas & Pashmina: 

Gurkhas & Pashmina www.nepalonline.net/gurkhamanpower www.huikaipashmina.com One of Nepal’s most famous exports is Pashmina shawls. Dozens of web sites advertize Pashmina wool products. However no Nepal located site accepts credit cards. Nepalese Gurkha’s have served as reknowned soldiers abroad for over 200 years. Ex-Gurkha servicemen are leveraging that image and using the Internet to locate overseas jobs for their countrymen.

Selling stamps in Uganda: 

Selling stamps in Uganda Uganda Post Office is advertizing stamps on its web site Many requests from overseas but payment must be made off-line http://www.ugandapost.com/

One group does it all: 

One group does it all In many developing countries, large groups dominate a significant portion of private economy If they can be brought online, significant boost for e-commerce Madhvani Group Uganda Largest private investor Over 20 companies http://www.madhvani.org

Government2Business: 

Government2Business Significant portion of population in Bolivia, Nepal and Uganda is rural Governments should assist e-commerce applications for farmers Product prices, input costs, transport schedules, weather reports M.S. Swaminathan project in southern India

Strategies: 

Strategies Act now not later. Amazon.com did not wait for perfect legal framework! Build professional looking sites with good payment and fulfillment process to make web pages indistinguishable from 1st World sites. Take advantage of free software and applications and support from bi-lateral and multi-lateral agencies. Government should ‘endorse’ directories and develop relevant local applications Be different.

The end: 

The end Selected references ITU Internet Case Study site: www.itu.int/ti/casestudies UNCTAD e-commerce publication: www.unctad.org/ecommerce/building.pdf IDRC e-commerce project for Uganda: www.idrc.ca/reports/read_article_english.cfm?article_num=451 Nepal e-commerce presentation: www.unctad.org/ecommerce/colombo/nepal/sld001.htm eriSign small business e-commerce support: www.internet-trust-services.com/customers/small-business.html