Whether it is in processes, products or markets, exporters who do not keep up with technological innovations in their field may fall behind. A solid investment strategy in “e”, however, can help SMEs enter new markets and overcome or sidestep many traditional obstacles they face while competing internationally.

To increase exports and improve national competitiveness, developing countries need specific e-trade strategies that go beyond the issue of access.

Small firms in developing countries can be more competitive using ICTs — by participating in new export sectors, streamlining business activities and linking with trade development partners more effectively. This article provides recommendations to firms and governments on integrating ICTs for trade.

Interview with Vinod K. Aggarwal, University of California at Berkeley

To create conditions for innovation, governments should promote e-literacy and capital markets as well as set the right legal and technological infrastructure in place.

Chambers of commerce can play active roles in promoting the use of information and communications technologies, as the example of the Brazilian Chamber of E-commerce — Camara-e.net — shows.

Today, multinationals are partnering with governments and local groups to provide seed money and skills, and to improve the policy environment for small firms to take off with technology.

National strategies need to concentrate on real e-issues facing small firms, so that they can benefit from information and communications technologies.

In keeping with the preoccupations of the Doha Development Agenda, ITC focused its annual Executive Forum debate on the theme “Business for Development: Implications for Export Strategy-makers”, and moved the event from its traditional home of Montreux, Switzerland to Cancún, Mexico.

Legal framework
• Create trust in the mechanics of e-trade (electronic signatures, copyrights, consumer protection, consumer privacy, dispute resolution).
• Reinforce international competitiveness (tax laws).
• Don’t overregulate: overregulation creates technological bias and unforeseen barriers.
• Work internationally: e-commerce is by nature without borders and harmonizing national laws is critical.

Too few firms in developing countries are taking advantage of new technologies which can help them export better. In this article, ITC focuses on what developing countries can do to shift their attention from the “Digital Divide” to the “Digital Dividend”.

Barbados was one of the first sugar-based agrarian economies to diversify into the provision of back office operations. The Government’s strategy to develop Barbados as an offshore financial centre started after research had been completed to establish the best way that Barbados could leverage its highly educated workforce of English mother tongue, its proximity to the United States and Canada, and its traditional links with the United Kingdom.

The conclusions drawn from the Executive Forum helped ITC to crystallize its thinking on how to assist its clients to understand, develop and apply the new information and communication technologies and associated business practices to international trade. The following are key elements from ITC’s strategy.

Tips on Canada’s e-strategy, services and partnerships, presented during ITC’s e-mail discussions on export development in the digital economy.

Once again, ITC presents trade development perspectives shaped by the impact of information and communication technology. This issue reports conclusions from “Executive Forum 2000: Export Development in the Digital Economy”, the resulting ITC e-trade strategy and how ITC is putting it into practice.

What are business executives in developing countries and trade development officials saying about e-trade? Below is a “sampler” – a taste of the individual views expressed during the Executive Forum process. For more views, see the Executive Forum web site, which contains e-discussions, e-briefs, interviews and an online version of the book emanating from the Executive Forum 2000.

Ghana’s e-challenge

Ghana’s national strategy is to promote export development aggressively, primarily in non-traditional export sectors. The Ghana Export Promotion Council (GEPC) coordinates the implementation of this strategy. One of Council’s strategic objectives is that all registered Ghanaian exporters should become e-competent by 2003.

The case of Malta shows how a national trade promotion organization can help SMEs take advantage of the Internet to boost exports.

In Malta, trade promotion necessarily starts with creating visibility for the country. Due to its small size, foreign investors and potential commercial partners do not see or hear enough about Malta to appreciate its potential as a supplier of goods and services. Few people know that Malta manufactures and exports a broad spectrum of products ranging from sophisticated industrial equipment and semi-conductors to general consumer goods such as giftware and furniture, to management and financial services. Few know that Malta’s export-per-capita ratio exceeds that of some of the most developed economies.

Are Australian firms ready to use the Internet as a means to join the global economy? And what lessons can be learned for developing countries from the Australian experience, especially for small firms located in rural areas?

To reach global markets through Internet, businesses need to adopt a sound business strategy, coupled with flexibility to question traditional practices. This is the real challenge for businesses using the Internet, no matter where they are located.

Most organizations do not use the Internet to buy goods and services—yet. ITC’s trend-trackers in international purchasing and supply management expect this to change, however, as Internet use becomes more widespread. Companies and governments in developing countries and economies in transition should take a second look at using the Internet to save time and money on purchases, and build better relations with suppliers.

How can importers and exporters in developing countries best take advantage of the Internet? A wealth of information exists on the rapid evolution and the benefits of the Internet. Less exists on how to sift through this information for the practical lessons and tips for exporting and importing firms, as well as trade support institutions.