Saturday, October 3, 2020

Experts stress public-private cooperation to expand e-commerce in South Asia

Kathmandu, Oct. 1

Experts from across South Asia have said that the region needs a strong public-private cooperation to develop quality infrastructure and enhance skill in people to expand e-commerce services.

"When internet access itself is limited and quality of infrastructure and logistics is questionable, expansion of e-commerce in much of South Asia will require significant public-private cooperation in important areas including skilling people," they said in a virtual meeting titled “Future of e-commerce in South Asia” organized by South Asia Watch on Trade, Economics and Environment (SAWTEE).

According to them, while e-commerce has been flourishing in the developed countries for several years, the COVID-19 pandemic has pushed the developing ones, including in South Asia, with far small e-commerce footprint to embrace digital commerce.

Dr. Ratnakar Adhikari, Executive Director of Enhanced Integrated Framework (EIF) Secretariat at the World Trade Organisation, emphasized that South Asia region holds tremendous potential for ecommerce but also faces critical challenges—primarily, inadequate regulatory arrangements, poor infrastructure, and dearth of skills.

"Such challenges should be resolved through collective efforts, policy support and through building an environment of trust," he said.

He also highlighted the importance of trade facilitation and logistics for the development of e-commerce ecosystem.

Shandana Gulzar Khan, Member of the National Assembly of Pakistan, suggested how, due to a host of regulatory weaknesses, e-commerce firms in Pakistan faced taxation-related hurdles.

Delivering a keynote address in the programme, she observed that although e-commerce offered opportunities for small suppliers, there was real possibility of elite capture in the rapidly evolving digital trade given that good quality internet access in Pakistan remained constrained while the skill deficits remained unaddressed.

She said that policymakers needed to look into the least common denominator when it comes to facilitating e-commerce so that it does not end up serving only the elites.

Shamika N. Sirimanne, Director of Division on Technology and Logistics, United Nations Conference on Trade and Development (UNCTAD), suggested that the key issues in expansion of e-commerce in the region were quality of logistics and internet affordability.

Cross-border trade, which is an important component in e-commerce, continues to face major supply chain inefficiencies due to lack of digitization, she said.

According to her, digital customs, supply chain areas like couriers and postal services and electronic payments should be in priority.

Promod Chhetri, General Manager of Royal Securities Exchange of Bhutan, suggested that while COVID-19 pushed switching to digital marketplaces, e-commerce firms in Bhutan found it difficult to handle orders, at least initially.

He discussed the rationale and efforts in enabling Bhutanese farmers to sell potatoes online via commodity exchange. Doing this not only entailed educating farmers and traders but also automating the grading of potatoes, Chhetri remarked.      

Deepali Gotadke, Founder and Business Owner of Web Dreams, an e-commerce firm in Hubli, Karnataka, suggested that smooth and low-cost electronic payments, including international payments, would be critical if e-commerce was to expand in the region.

She also emphasized how the knowledge intensive nature of digital trade made e-commerce difficult to be accessed by small businesses.

Surakchya Adhikari, Co-founder and Chief Operating Officer of Thulo.com, Kathmandu, said that inadequate availability of merchandize and delivery-related difficulties owing to the lockdown regulations were the principal obstacles.

Published in The Rising Nepal daily on 3 October 2020. 

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