UNCTAD-Friedrich-Ebert-Stiftung Workshop

 

 

Good morning, everyone.

 

Before I start, I’d like to express our gratitude to the Friedrich Ebert Stiftung for co-organizing this event with us. This is our third joint conference and we are very pleased to welcome you today.

 

We are here today to explore ways to “unlock the potential for e-commerce for development.”

 

And the power of e-commerce goes beyond expanding trade. It opens opportunities for people. It can transform communities.

 

Do you remember for instance, the case of Dongfeng, the Chinese village?

 

Let me give you an example of what that looks like.

 

A generation ago, the Chinese village of Dongfeng was known mainly for pig farming. But in 2006, a young man from the village was inspired by IKEA, and set up Dongfeng’s first online shop to sell simple assembled furniture.

 

Before the advent of online retailing, there was no furniture industry in the village – let alone the financing or infrastructure needed to support it. But online sales took off. Soon other villagers traded their pitchforks for computers and mobile phones. A furniture assembly and manufacturing industry emerged. And other cottage industries sprouted up. Within 4 years, Dongfeng had 3 hardware accessories factories, 15 logistics and express delivery companies, and 7 computer stores. There are now 400 online shops selling domestically and abroad, with combined annual revenue of $50 million.

 

Dongfeng is an example of the revolutionary power of e-commerce.

 

And its story is only the beginning of a seismic shift. We can only imagine the transformation that cloud computing, 3-D printing, and the Internet of Things will unleash. 

 

The question for us today is: How can we accelerate this transformation and harness it for inclusive development?

 

At UNCTAD, we’ve been working out answers to this question for more than 15 years now. We have long seen tremendous untapped potential in the form of ICTs for developing countries.

 

We are particularly interested in the opportunities that e-commerce offers to SMEs trying to get a foothold in global markets. These are the firms that McKinsey has called the “Micro Multinationals.” They are upending the conventional wisdom that only the largest and most productive MNCs can export. With a laptop and a broadband connection, any entrepreneur can compete in global markets.

 

For many years, e-commerce was slow to pick up outside of the OECD countries. It was seen as a rather elusive opportunity available only to affluent societies.

   

But the mobile revolution has been a game-changer.

 

New online payment systems and online market portals have made e-commerce a reality in countries at all levels of development.

 

China is already the world’s largest market for B2C e-commerce. Brazil and India are among the top 10 B2C markets. And e-commerce is quickly gaining ground in Asia and Africa.

 

But the digital divide is still wide. In the UK, for example, more than 70% of consumers are buying things online; In South Africa and Thailand, less than 5% shop online. And in the least developed countries, the shares are even lower.

 

It’s clear that e-commerce harbors immense potential for economic development. But the benefits will not materialize automatically. If only some of us are in a position to harness new technologies, we may see a widening instead of a narrowing of the digital divide.

 

Technology is at its best when it is inclusive. And it is in this spirit that we are here today.

 

As the World Bank’s recently released World Development Report 2016 stressed, we must face up to twin challenges. First, we need to increase affordable ICT connectivity in the developing world. And second, we need to bolster what the World Bank refers to as “analog complements,” the human capital and physical infrastructure without which ICTs will remain under-exploited.

 

Other international organizations – the World Bank, ITC, UPU, ITU, regional development banks, and the WTO, to name but a few – have all contributed to increasing e-commerce uptake. The problem, as we see it, is that current efforts are fragmented and insufficiently scaled.

 

The purpose of this 2-day meeting is to draft an action plan for an Aid for eTrade initiative – inspired by a paper authored by Kati Suominen – to ratchet up comprehensive support for developing countries.

 

The time for a global effort to secure development gains from e-commerce is now.

 

As you can see, we have invited a select group of people representing key stakeholders in the fields of e-commerce and development. You represent bilateral donors, international organizations, major global enterprises and smaller niche players, and developing countries for whom e-commerce is a priority.

 

We need to incorporate your perspectives to set a realistic goal for a global initiative in this area. In particular, we need to consider several questions:

 

This is not necessarily an easy task. Much will depend on your active involvement in making this workshop a creative and useful endeavor.

 

UNCTAD has shared a background note for the workshop with you, outlining some of the issues in greater detail. Kati will elaborate shortly.

 

Let me now say a few words about the process moving forward.

 

Tomorrow afternoon, we hope to have a draft text for an action plan that can be circulated more widely in a consultation process.

 

From April 18-22, UNCTAD will organize the E-Commerce Week in Geneva. We will spend one full day to test drive the ideas and draft action plan among a wider set of stakeholders – Geneva delegates, the private sector, and international organizations.

 

Then, if the proposal gains traction, we will present the initiative at the UNCTAD Ministerial Conference in Nairobi next July.

 

Dear friends,

 

The story of Dongfeng can be the story of the developing world. With the right policies and support, e-commerce can narrow the digital divide; and also the income divide.

 

We can make technology inclusive. And we can unlock its potential for development.

 

Each of you has a stake in crafting a future Aid for eTrade initiative that responds to the yearnings of people around the world for a better life. My hope is that together we will seize this opportunity.

 

Thanks again to Mr. Schillinger and his team at the Friedrich Ebert Stiftung for co-organizing our workshop today.

 

And now I leave you to the important work ahead.

 

Thank you.