World Export Development Forum (WEDF)








 

Brainstorming Consultation:  ProgrammeParticipants  |  Summary   |  Interviews


 

Thursday, 13 July 2000: morning session

Co-ordinating an Effective National Response: Strategies for Creating the Right Environment

>> Voices from the Brainstorming: Day 2

 

The focus:

The focus of this session was on four questions:

  • What are the elements of a suitable national environment for the development of e-competency and e-commerce capability within the business sector?
  • What are the principal constraints to be overcome?
  • Are there universally applicable solutions?
  • Can a checklist of best practice be developed for the national export strategy-maker?

The role of the export strategy-maker

Initial discussion focused on the fact that the export strategy-maker has really very little authority in creating the right environment for e-competency and the development of e-commerce capability within the business sector. Strategy-makers from other ministries, such as telecommunications, finance, and education, are the principal decision-makers on questions that often in their minds, have little obvious (or immediate) connection to export performance. Yet the decisions they take can be crucial for their impact on the export strategy-makers' priorities of maintaining international competitiveness in the short term and progressively improving export performance over the longer term.

It was agreed that the challenges facing the export strategy-maker are therefore:

  • to be included in the decision-making process;
  • to emphasize the fundamental importance of e-commerce capability within the export sector to broader national objectives (economic and social);
  • to influence decisions in favour of a proactive and cost-effective approach to e-competency development within the export sector;
  • and to ensure that this priority is reflected in the strategies of all concerned ministries.

To play such a role, the export strategy-maker must be familiar with the full cross-section of issues which confront colleagues in other ministries; issues as diverse as competition policy, privatization of public services (i.e. telecomm); foreign direct investment; revenue and taxation; and school curricula.

Common constraints

It was emphasized that while each developing or transition economy may have its own specific shortcomings in creating an optimal national environment for the development of e-commerce capability, most confront a set of common constraints.

While technology and money are the two most obvious common constraints to achieving the optimal environment for the growth of e-commerce capacity, it was agreed that, in the final analysis, these represent two sides of the same coin. In the first instance, the need is for innovative solutions, whether public- or private-sector led. The creation of a basic telecommunications infrastructure and Internet services is certainly the first step. However, there can be a tendency among strategy-makers to postpone decisions due to the constantly evolving technology.

Technology leap-frogging

Technology leap-frogging is certainly desirable but strategy-makers should not wait until the next generation of technology emerges before they act.

On the issue of establishing the required infrastructure on the national level, several participants argued that given the costs involved a more targeted regional approach is best in the vast majority of developing countries. Infrastructure should be established first in commercial/production centres, they suggested. An extension of this view was that infrastructure should target those geographic regions where export-businesses are "clustered".

Once the infrastructure is in place, an optimal environment would require the availability of inexpensive computer hardware and software, wide and unrestricted access to Internet at inexpensive rates, reliable electric power, and a banking system supportive of entrepreneurship, several brainstormers added. Others noted that creating the means to participate in e-commerce is one thing, but establishing the "culture" within the business community to actually take advantage of such an environment is quite another matter. This is the constraint facing all countries -- developed and developing.

While government-supported programmes in developed countries can effectively address the issue of general awareness and companies can afford to retain private consultancy firms to advise them on organizing themselves on an "e-business" basis, developing countries generally confront a more pronounced "awareness and cultural constraint" and have significantly fewer funds to deal with it. It was suggested that in the majority of developing countries, the public sector strategy-maker must take the lead initially and maintain the effort over the long term. It is a question not only of promoting general awareness through formal education (the long-term solution), but of proactive promotion of "organizational and cultural change" within the business sector and of civil society at large (the short- and medium-term solution). Within civil society,  informal approaches to education and familiarity often work best: one proven example being that of installing a computer in the grounds of a temple and encouraging the children "play" with it. Partnerships with entrepreneurial non-governmental organizations have been successful in this area.

The consensus was that while there are several common constraints, there are no standard solutions. The only rules of thumb were to address the fundamentals first. Establish adequate technology in the immediate term, and ensure that all the other elements of an optimal environment are addressed in a manner consistent with the circumstances of the country.

Best practice

Though noting it was unlikely that there were standard solutions to most of the common constraints, the brainstormers did endorse the suggestion that it was possible to establish a standard checklist of "best practice" of what has to be done to ensure the right environment for the development of e-competency and e-commerce capacity.

Top of page   |  Back