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.
