Joint Facilitation Meeting on WSIS Action Lines C7 on e-Business E -COMMERCE AS A KEY FACILITATOR FOR SME COMPETITIVENESS 22 May 2008, ITU Ms. Cécile Barayre-El Shami Economic Affairs Officer ICT Policy and Analysis Unit Science, Technology and ICT Branch Division on Technology and Logistics Building a legal framework for the information economy

ICT policy framework for the information economy Creating a favourable environment for SMEs: ICT infrastructure development Legal and regulatory framework Human capacity E-business and economic environment E-government ICT-related trade and investment policies Technological innovation

WSIS target: all countries have a national ICT strategy by : how many developing countries have adopted an ICT strategy or master plan? National ICT strategy 181 developing and transition countries and territories surveyed by UNCTAD

Source: UNCTAD (2006) UNCTAD survey on national ICT master plans in developing countries No information available 36 countries are designing an ICT plan (20%) 80 countries have adopted an ICT plan (44%)

ICT and law reform WHY? To ensure trust between commercial partners To comply with other countries’ legislation To facilitate the conduct of domestic and international trade To offer legal protection for users and providers of e-commerce services

ICT and law reform HOW TO? Involve all relevant Ministries to define priority areas for reform Consider existing e-commerce laws (UNCITRAL ML and convention, other countries’ legislation) and regional/international harmonisation Make an inventory of the legislation that need to be adapted Consult with stakeholders to present and discuss the draft legal framework

Challenges the lack of human resources the lack of public awareness about the scope and application of the law and its benefits consumers' lack of trust in the security of e- commerce transactions and privacy protection the difficulty in setting up the technical infrastructure the different legal, social and economic systems of countries in a particular region

UNCTAD’s program on ICT and law reform  UNCTAD builds capacity with legal issues related to ICTs (training course, workshops)  UNCTAD assists countries and regions (Latin America, ASEAN, EAC, UEMOA) in the preparation of hamonized legal frameworks

UNCTAD survey on legislation relating to ICT in developing countries Out of the 32 responses, 20 countries have adapted their legislation to e-commerce and 8 were in the process of doing so Priority given to e-transactions, information security law, consumer protection, IPRs, ISP’s liability, privacy, dispute resolution and e-contracting

UNCTAD survey on legislation relating to ICT in developing countries INTERNATIONAL AND REGIONAL HARMONISATION 20 countries have considered UNCITRAL Model law on e-commerce; 25 the ML on e-signature and 11 the Convention on e-contracting 8 countries based their legislation on the EU directive on e-commerce and on other instruments adopted by European countries, India, Singapore, and the United Arab Emirates.

UNCTAD survey on legislation relating to ICT in developing countries The adoption of a legal framework has helped expand business opportunities and attract FDI. Examples:  The Republic of Korea: e-commerce transactions in 2005 rose 14.1% over 2004  El Salvador: new trade opportunities for products and services over the Internet  Cambodia: conduct of trade in the region facilitated

UNCTAD survey on legislation relating to ICT in developing countries Next challenge: Enforcement Need to build capacities of legal professionals (seminars, training programs, diploma) Ex: Chile, Cuba, Ecuador, Sri Lanka, the Philippines Need to accompany legal reform by a broader reform on the information economy to create awareness of e-commerce opportunities and build trust

Joint Facilitation Meeting on WSIS Action Lines C7 on e-Business E -COMMERCE AS A KEY FACILITATOR FOR SME COMPETITIVENESS 22 May 2008, ITU measuring-ict.unctad.org Thank you