Financing E-Commerce While Fighting Poverty Asavin Chintakananda Senior Advisor, Asian Development Bank Manila, Philippines

Overview Poverty Reduction and E-CommercePoverty Reduction and E-Commerce Fostering E-CommerceFostering E-Commerce ADB’s Financial InstrumentsADB’s Financial Instruments

The Poverty Problem 70% of the world’s poor live in the region 900 million people survive on less than $1 per day Many are not sharing in Asia’s progress

ADB’s Poverty Reduction Strategy Pro-poor, sustainable economic growth Social development Good governance

Why would a multilateral development bank committed to poverty reduction in Asia and the Pacific consider E-commerce a worthwhile investment?

The Internet is dramatically changing the way goods and services are produced, delivered, sold and purchased.The Internet is dramatically changing the way goods and services are produced, delivered, sold and purchased. Internet technologies have the potential to empower small and medium size business enterprises (SMEs).Internet technologies have the potential to empower small and medium size business enterprises (SMEs). The potential benefits of e-commerce for the developing world are immense. Any company can enter global markets where size and location have become rather irrelevant.The potential benefits of e-commerce for the developing world are immense. Any company can enter global markets where size and location have become rather irrelevant. Why E- Commerce is Important

Economic growth is the engine of poverty reduction, trade can be enhanced usingEconomic growth is the engine of poverty reduction, trade can be enhanced usingE-commerce Promotes transparency and governance by giving more opportunities for competitionPromotes transparency and governance by giving more opportunities for competition Benefits of inclusion in the global economy are as high as the risks of exclusionBenefits of inclusion in the global economy are as high as the risks of exclusion How Will Developing E-Commerce Reduce Poverty in Asia and the Pacific?

Non-involvement in E-commerce is not an option for developing countries, but obstacles exist

Fostering E-Commerce Right conditions must exist for e-commerce to grow and thrive: Strong policy framework Skilled workforce Infrastructure and access Awareness and trust

How is ADB Helping?

By providing the technical assistance and financing to build the foundation for successful E-commerce implementation through...

Financial Instruments Loans Technical Assistance Special Funds Private Sector Investment

Loans Over $1.5 billion loans in Information and Communication Technology

Major Loan Activity Greater Mekong Subregion - Fiber Optic Greater Mekong Subregion - Fiber Optic Telecoms Backbone, 2003 Telecoms Backbone, 2003 Maldives – Information Technology Maldives – Information Technology Development and Strengthening Public Development and Strengthening Public Accounting, 2001 Accounting, 2001

Technical Assistance Over $40 million for education, capacity building and ICT projects

Current TA Projects GMS – Cross Border Trade and Investment for SME DevelopmentGMS – Cross Border Trade and Investment for SME Development Bangladesh – SME Development and Export ExpansionBangladesh – SME Development and Export Expansion Nepal –ICT for Financial Service ImprovementNepal –ICT for Financial Service Improvement Sri Lanka – School Computerization and Computer LiteracySri Lanka – School Computerization and Computer Literacy

Enhancing the Involvement of Private Sector Organizations in the Process of Economic Cooperation in the Greater Mekong SubregionEnhancing the Involvement of Private Sector Organizations in the Process of Economic Cooperation in the Greater Mekong Subregion E-Legal Challenges in Asia: Cyber Law Training SeminarE-Legal Challenges in Asia: Cyber Law Training Seminar Trade Policy and Legal Framework in MongoliaTrade Policy and Legal Framework in Mongolia Annual Asia Development ForumAnnual Asia Development Forum Current TA Projects

Special Funds Japan Fund for Information and Communication TechnologyJapan Fund for Information and Communication Technology - $10 million grant fund for innovative applications of ICT Japan Fund for Poverty ReductionJapan Fund for Poverty Reduction - $290 million grant fund to pilot innovative, participatory and direct poverty reduction projects related to ADB loans

Fighting Poverty While Promoting E-Commerce Marketing Bamboo Products - Philippines Microenterprise Furniture Manufacturers - Indonesia Silk Production in Northern Viet Nam

Private Sector Investment Helping governments to create enabling conditions for business.Helping governments to create enabling conditions for business. Generating business opportunities in ADB- financed public sector projects.Generating business opportunities in ADB- financed public sector projects. Catalyzing private investments through direct financing, credit enhancements, and risk mitigation instruments.Catalyzing private investments through direct financing, credit enhancements, and risk mitigation instruments.

Investments Under Consideration Electronic payment systems forElectronic payment systems fore-commerce Wireless computer networksWireless computer networks

GrameenPhone Good Business Can Mean Good Development Provides Village Payphone services to over Provides Village Payphone services to over 20,000 villages 20,000 villages Generating employment, trade, innovationGenerating employment, trade, innovation ADB investment of $18.3 million and 3% equity million and 3% equity stake stake

A Look At GrameenPhone

Thank You