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Information and Communication Technologies in International
Trade, Investment and Sustainable Development
-- a Commonwealth Perspective
Discussions in the Working Groups
Workshop delegates met in three working groups to examine more
closely the implications of their discussions on;
The results of their discussions are included in the following pages.
1. Deliberations of the Working Group
on the Role of Government
The Working Group agreed that national governments carried many
responsibilities for the promotion of the application of Information
and Communication Technologies. The group summarized them
in the following way:
Policy and Framework
Governments need to undertake the establishment of the regulatory
framework which would enable the full application of ICTs.
This would mean concern for:
Promotion of full transparency A flexible system Open access Assurance of privacy and data protection Security Protection of intellectual property rights Provision of universal access
Development of Strategic Direction
Governments should lead in the development of the strategy
which would be followed in the implementation of the ICT. For
example, when concerned with international trade and investment,
this would require:
Application of the national trade policy Improvement of national competitiveness Protection of the consumer Dissemination of the benefits as widely as possible Development of an open architecture to permit widespread
use for trade, business and technology Improvement of the quality and management of statistical
information relevant to international trade, and investment
It was seen to be important for any government to take a structured
approach to the development of a national policy and framework
for application of Information and Communication Technologies. The structure proposed was the following;
Develop a Strategy for a National Information Society
It was agreed that a primary role of government was the definition
of a national strategy for ICT but one which would fit into
the relevant international, regional and sub-regional contexts.
It was agreed that there was a clear need for a Commonwealth
Information Society (similar to the Global Information Society)
which would bring gather information on current activities and
understandings within the Commonwealth and beyond as a support
to national governments in the development of national strategies.
It was foreseen that COMNET-IT would have the major role
in such a development. The development of a national strategy
must involve all the relevant stakeholders, including both public
and private sectors, civil society, academia and labour. It
must apply to all the appropriate sectors in which ICT can play
a role, including especially health, education, social services
and access to government programs and services. Included within
that list of sectors would be international trade and investment.
Develop a Common Framework for the Application of ICTs
In the development of a sub-strategy for each of the sectors
of application, including international trade and investment,
it is important to develop a common framework to promote understanding
and to encourage the creation of a streamlined and integrated
service. The Working group recommended the use of a model similar
to the one developed by Canada and described as the Infrastructure
Services Model. The use of such a model imposes a logic
and discipline in the development of the required infrastructure,
and provides for a common language among the various stakeholders.
Develop the Mission for ICTs in support of International
Trade and Investment
It is the role of government to develop, in partnership with
the economic stakeholders in the country, the mission allocated
for ICTs in support of trade and investment. This would require
the definition of goals and strategies to achieve those goals.
Undertake the Development of the ICT Strategic Plan for
International Trade & Investment
Under the leadership of the government, an ICT strategic plan
should be developed in support of international trade &
investment. The working group suggested that this effort would
include such actions as a baseline assessment of strengths
and weaknesses, a classification of needs and resources, the
targeting of specific objectives and the likely aggregation
of potential users. Earlier in this document, a schematic
entitled the ICT Development Model has been included
to support such planning.
In the design of this Plan, it will be essential for government
to identify strategic alliances, and promote understanding for
a variety of issues, such as:
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How will Economic Commerce work? What are the business
processes involved?
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What will be the technical standards which are applied?
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What legal issues are involved ? Do they require the
development of new and flexible policy frameworks?
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What provision will be required for change management
in the introduction of electronic commerce?
A most important element of the Strategic Plan will be the
identification of financial resources that are required
for its implementation. Funding will need to be found, and investment
encouraged.
Finally, the government role should be to coordinate and direct
an Implementation Strategy which would involve;
Introduce the concept through a Pilot phase
Evaluate the Pilot operation and make suggested changes
Roll-out the full program
Maintain an on-going evaluation of the program
2. Deliberations of the Working Group
on the Role of Trade Promotion Organizations (TPOs)
Trade Promotion Organizations (TPOs) were defined by the group
to include a large number of organizations which act as catalysts
of trade, including;
National Trade Promotion Agencies Chambers of Commerce and Industry Trade Points Boards of Trade Export Promotion Councils Industrial Organizations and/or councils
The working group made the following recommendations:
With reference to the accumulation and dissemination of trade information, TPOs should adopt internationally accepted standards, in order to secure system compatibility, and to facilitate data interchange (e.g. EDIFACT of the UNECE/CEFACT, the ETO format of UNCTAD, the COMREG of ITC, etc.) Efforts should be made to increase awareness of these standards and to assist TPOs’ in their application.
It is important to recognize the need to validate the data on business opportunities which is inputted into electronic databases. The TPO should be at the centre of this validation process.
Level 1. TPOs should be responsible for recognizing and validating
the identity of the provider of the information
Level 2. TPOs should ensure the accuracy of the data itself.
It was recommended that a survey of all Commonwealth countries
be undertaken by a TPO in each country under the coordination
of the Commonwealth Secretariat. Such a survey would have as
its objectives:
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To identify and describe sources of trade information
at the national level
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To assess the needs for technical assistance for such
TPOs with the intent of promoting data transparency
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To ensure, where possible, the harmonisation of data collection,
processing and dissemination at the national level
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To design and implement projects of cooperation to facilitate
data exchange at the regional and Commonwealth level.
The working group recognized the work already underway in this
regard under the leadership of the Export Marketing and Industrial
Development Division of the Commonwealth Secretariat in
the further development of COMBINET, a network of Commonwealth
Chambers of Commerce.
It was proposed that a "Commonwealth Seal of Approval"
should be developed, issued and monitored for quality control
of electronic trade opportunities. Such certification would
be provided to TPOs by an accredited Commonwealth body.
Education and training programmes should be organized
to create awareness among the TPOs of the use of ICTs which
would be appropriate to trade development. Such programmes should
include the training of trainers, specialized seminars, fellowships
and computer-base training materials. Again, the group recognized
the work being supported by the EMID of the Commonwealth Secretariat
in the provision of such training opportunities for Chambers
of Commerce and Industry.
3. Deliberations of the Working Group
on Facilitation of SMEs to use ICTs
The group agreed that assisting the SME sector in any country
to obtain the maximum benefit from globalization was an important
goal. Although there could be differences in national definition
of what was a small and/or medium enterprise, there was broad
agreement that the growth and development of such enterprises
was important to all countries, especially with regard to employment
and job creation.
The group used the proposed Infrastructure Services Model
as a template for discussion of the possible facilitation models
for SMEs. The idea was that if one could first define the business
drivers which would be required for SME development, it would
then be possible to identify both programme delivery methods and
applications to serve the small and medium business community.
Discussion then centred on the identification of the proposed business drivers of importance to the SME. It was agreed that these included:
The development of human capability Trade and market information and opportunity matching Investment and joint venture development Availability of supporting infrastructure services (banking,
transport, etc.)
There was also some, but not universal agreement that:
were other important business drivers that should be included
in the set.
Returning then to the Infrastructure Services Model, the
group then reviewed each of the proposed building blocks of the
model as to their ability to serve the business drivers, and to
their necessity in the delivery of programmes which would meet
the needs of the SME sector.
The conclusions reached in this assessment included:
The Internet;
Was a challenge to the traditional telecom model in most
countries, but
It represented a unique opportunity for SMEs to gain access
to the drivers proposed above
Governments needed to recognize this fact in the development
of national economic and telecommunication policies, as SMEs
would both require access to Internet at competitive rates,
and would demand such
Programmes needed to be designed for specific delivery over
the Internet but which met national objectives and served
national characteristics
Distributed Computing
Given the current pricing trends for personal computers, it
was agreed that the concept of distributed computing services
was an unlikely candidate for long term development, and proposed
that effort should be concentrated on the development of human
capabilities within the SME sector around the PC and the Internet.
However, it was also agreed that such activities as centralized
data banks and shared servers could be useful in the short and
medium term
Development of Specific Programmes (the Business Drivers)
for National and Sectoral Demands
The Working Group’s analysis showed that the specific
programmes needed to promote the involvement of the SME in the
use of ICT, must be developed on both a national, and
a sectoral basis. For example, the identification of
trade opportunities for the sector in any one country would
need to reflect the capabilities and strengths of the sector
in that country; whereas the development of human resources
for the tourism sector would require different programmes from
that needed in the furniture sector. Thus governments should
be encouraged to recognize this need for diversity in information
to be accessed. The place to begin in the development of any
plan for the use of ICTs with SMEs will be to undertake a demand
analysis; but with careful recognition of the different needs
of each business sector.
Technology Used will depend on Sectoral Capabilities
The needs for ICT in any single SME will vary according to
the type of business and its location. In some sectors, there
will be no need for on-line capabilities, whereas the customer
needs serviced by other firms may require such a capability.
When it can be demonstrated that the ICT meets the needs the
SME has, it will have ready use.
A Cross-sectoral ICT policy (vision) is necessary
Experience in most countries shows that the most cost effective
way of applying ICTs in any society is to undertake the preparation
of a cross-sectoral ICT policy and then to promote its
acceptance over the medium term. Thus, such sectors as health,
education, governance, demography, agriculture etc., should
all be part of such a cross-sectoral policy.
This does not mean that support of the SME sector’s access
to on-line services needs to await the development of such a
policy, but the development over the near term of such a policy
is important to limit costs to the enterprise in the future.
Supporting Infrastructure for access by the SME to ICT is
an essential issue
One of the very reasons for SMEs to want access to ICTs is
the infrastructure itself. The example of County of Kent County
in the UK was given. Recently, many businesses in the County
experienced long delays in gaining access to the Internet; this
fact provided government with an added perceived need to develop
a new infrastructure which would speed such access. Thus an
Intranet network was created with subsidiary servers which would
hold data of general importance, and which the firms could access
without getting directly onto the Internet. Having created such
a network (or Intranet), SMEs gain access to the Intranet both
for the information and to speed access to the Internet.
Other technologies are available to support SMEs
It should also be noted that there are many other technologies
which can be devoted to the support of SMEs other than the PC
and a modem. These include the mobile phone, the fax machine
and radio and television receivers. All of these can provide
important support to the enterprise in serving an expanding
market, and may be less costly in both financial and human resource
terms than moving directly to the PC and a modem.
Case Studies:
The working group then focussed their attention on the following
2 case studies to determine how ICTs could best be adapted to
their needs.
Single person craft company in rural Africa.
The business drivers for such a firm included ways to expand
sales and to reduce raw material costs.
The first step would be to acquire a mobile phone which
would be linked to a tele-centre in a regional centre. In
that centre, the Association of the exporters of the craft
would establish a centre (or focus) of expertise which itself
would have wider access to data and the Internet, and would
act as the e-mail address for all members of the exporter
Association. Sales orders would arrive at the tele-centre
and be routed to the exporter via the mobile phone; raw material
prices would be gathered by the centre for the information
of all members.
Such an infrastructure would include:
Basic fixed and mobile network Telephony and internet Distributed computing (in the Association) at the tele-centre Trade, marketing and sales programs
The next step as the firm expanded might be the use of its
own telephony services (fax and telephone equipment).
The story was told of a builder in the County of Kent who
spent several hours every morning calling suppliers of building
materials in a search for the best prices. When introduced
to the computer, he recognized that a better way to record
such data was to use the computer’s database and spreadsheet
capabilities. This led him to the creation of a regional information
service – on a database infrastructure- which he then
sold as to others within the region, his service becoming
an added revenue source for his business.
The infrastructure to support such an effort would include:
The group noted that since some applications of ICTs did
not demand literacy, (but depending on visual data), non-literate
SMEs could be assisted, and might be introduced onto the world
market through the effect of ICTs.
Use of the Many Actors offering support services
SMEs can be assisted in the use of ICTs by the support which
their Chambers, Associations and national governments have given
to the creation of world-wide networks of information and communication.
Thus such facilities as:
COMBINET UNCTAD/Trade Points The Global Network of the ICC through the national Chambers
of Commerce – especially including the G77 Chambers
of Commerce Trade Information Network UNCTAD/ITC UN and its regional commissions (Africa. Europe, Asia and
Latin America) Local ministry support
can be used to deliver support to the SMEs through a top-down
process. Governments need to consider the application of
all the new players and actors into the mix of service offered
to the SMEs.
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