The Business and Economic Environment

Use and deployment of information and communication technologies is largely being driven by the private sector. Accordingly, the overall business climate of a community, while affecting diverse development concerns, is of particular importance with regard to Networked Readiness and electronic commerce.

The following factors, often influenced or determined by national policy, should be considered:

• perceived political risk

• predictability of the legal environment

• soundness of economic and monetary policies

• openness to foreign direct investment

• convertibility of local currency

• restrictions on capital laws

• credit card usage

• credit card processing protocols

• access to credit

• entrepreneurial culture

• access to startup capital

• regulations and restrictions on small businesses

Ongoing Public Policy Challenges

There are a number of policy issues surrounding the Internet and electronic commerce whose stages of resolution are not clear, but which must be considered for their profound impact upon Networked Readiness.

In general, policies which ensure legal certainty, security and consumer protection for online transactions and interactions should be enacted. These include the resolution of issues such as transactional security, electronic contract enforceability and the authentication of individuals and documents.

n dealing with issues such as Internet taxation, online privacy and intellectual property rights, the following guidelines should be followed:

• Internet tax policy should neither penalize the online trade of goods and services vis-a vis traditional commerce nor inhibit the growth of electronic commerce.

• Measures should exist that safeguard the privacy of end-users in the community.

• The question of how to address intellectual property rights in a policy framework must be carefully addressed. Words such as speech, property and contract should be appropriately considered in any legal framework.

To resolve all of these issues, an appropriate mix of government regulation, market-based solutions and industry self-regulation should be put in place which considers both consumer and business interests. 

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