Attachment 4: Proceedings
Welcoming Remarks by Mr. Omar Halim, Executive
Director of NAM CSSTC
Recognising that technical cooperation among developing countries can be an
important catalyst for South-South cooperation, the Heads of State and
Government of the Non-Aligned Movement (NAM) endorsed the establishment of
the NAM Centre for South-South Technical Cooperation (NAM CSTC) during their
eleventh Summit, held at Cartagena, Colombia, in 1995. Meanwhile, at the
tenth NAM Summit, held at Jakarta in 1992, NAM member countries has decided
that NAM CSSTC programmes should focus on integrated and equitable
people-centred development. At their twelfth NAM Summit in Durban in 1998,
the Heads of State and government declared that the eradication of poverty,
through sustained and accelerated economic growth, should become a major
objective of NAM member countries during the twenty-first century.
Consequently, the NAM CSSTC will give the highest priority to projects that
facilitate the exchange of information and experience; promote technical
cooperation among NAM member countries and assist, wherever possible, these
countries in their efforts to reduce or eliminate poverty.
Together
with the rest of the world, NAM member countries - the majority of which are
among the poorest members of the international community – have to face the
impact of globalization and the rapid advanced of technology. These
phenomena provide both opportunities and challenges for developing
countries. Furthermore, the small and medium enterprises (SMEs) comprise the
vast majority of enterprises, and provide employment opportunities to the
overwhelming proportion of the labour force, in developing countries.
At this juncture, therefore, NAM
CSSTC feels that there is a strong rationale to organize an expert group
meeting to discuss the role of SMEs in people-centred development and the
potential of information and communication technology in increasing the
efficincy of production and preparedness of SMEs in facing the rapid process
of globalization.
The
meeting, which is jointly organized by NAM CSSTC and the ministry of
Industry and Primary Resources of Brunei Darussalam and financed by the
government of Brunei Darussalam, was perceived with this objective in mind.
It is further hoped that, this meeting could be followed by future projects
that could assist interested SMEs in NAM member countries to advance their
capacity in participating and competing in the international markets. In
this way, a broader-based development process in NAM member countries will
have been advanced.
With the
encouragement of Ministry of Industry and Primary Resources, Government of
Brunei Darussalam, NAM CSSTC is convinced that the meeting will meet its
objectives.
Finally,
on behalf of the Board of Directors of the NAM CSST, I should like to
express our deep appreciation to the Government of Brunei Darussalam for
their unrelenting assistance and support in rendering this project to a
success.
Opening Remarks by Dato Paduka Abdul Rahman Haji Ibrahim,
Permanent Secretary Ministry of Industry and Primary Resources, Brunei
Darussalam
Global
competitiveness is an important issue that many countries and businesses are
grappling with as the new economy becomes pervasive everyday. The small and
medium enterprises of many developing countries and especially those in the
Non-Aligned Movement must certainly address the issues of business and
investment competitiveness in order that they would survive in the local and
global markets.
It is
therefore my distinct and privilege honour to greet you on this Workshop on
NAM SMEs with the theme “Promoting Sustainable Growth and Competitiveness of
NAM’S SMEs IN GLOBALISED MERKET THROUGH E-COMMERCE” organized jointly by the
NAM Centre for South-South Technical Cooperation and the Ministry of
Industry and Primary Resources. I believe this workshop is very timely and
relevant to help NAM’s SMEs find some common grounds and propose relevant
action measures that would help them turn in potentials of e-commerce into
golden business opportunities.
The
workshop today will give the participants not only the chance to listen to
the distinguished experts but also the rare opportunity to share experience
and common concerns with one another. With the active involvement of
everyone, the objectives of this workshop would certainly be realized.
It is my
sincere hope that the partnership between the various government agencies
and leaders of SMEs from the Non-Aligned Movement will contribute to
workable e-commerce policies and programmes that would truly benefit the
SMEs in our respective countries.
I would
like to especially acknowledge the NAM Centre for South-South Technical
Cooperation for co-sponsoring this seminar with our ministry and the
organizing committee for the successful holding of this workshop.
Let me
wish all of you every success in your delibertations.
The
Rapporteurs’ Notes
Paper 1 – E-Commerce and its
Role in SME development
The main points of Mr. Ang’s presentation:
§
Defining e-commerce and its place in the
scheme of e-business, its direct benefits in terms of cost reduction,
improving efficiency and market outreach for all enterprises especially SMEs.
§
The dot.com meltdown proved that business
performance is still based on sound business principles.
§
There is a tremendous opportunities for
e-commerce as the number of internet users worldwide will continue to
expand.
§
SMEs need to prepare themselves to take on
the opportunities that has arisen from the changes brought about by internet
technologies. Cost of internet access and infrastructure is bound to decline
and this will benefit SMEs.
§
Role of government is to produce
legislation conducive to growth of e-commerce that is consistent
internationally.
§
There are relatively cheap ready-made
packages offered by e-commerce service providers that can jumpstart SMEs
into e-commerce, such as Alibaba and MyOHQ.
§
Other ideas that encourage the use of
e-commerce by SMEs-
o
Customising industry specific portals to
suit SMEs in different trades will allow for building sizeable trading
communities
o
Strengthen the security and authentication
system to encourage trust in the transaction
o
Government should go on line to encourage
SMEs and other clients to go on line. Considers government as a key driver
for the economy to go on line.
The main points of Mr. Tallae’s
presentation are as follows:
§
Governments must recognize the important
role of e-commerce in promoting trade and investment and should be committed
in supporting its adoption, utilization and development through appropriate
fiscal and legal policies.
§
Pakistan’s experience in this area
includes:
o
Strengthening government R & D
infrastructure – manpower, scholarships, libraries, laboratories, schools,
universities
o
Enhancing Linkage between government R & D
and private sector industries
o
Investments in venture capital
o
Creation of Technology Cluster Councils
consisting of private and public sector that provide services to SMEs such
as training, product development, consultancy and quality improvement.
o
Creation of a Standards and Quality Control
Authority and National Accreditation Council for certification purposes
§
His ideas on mechanisms that could enhance
NAM co-operation includes the formation of an expert’s committee to draft
project documents that would address the various issues related to promoting
the rapid adoption and use of e-commerce by NAM countries.
Paper
3. Vietnam’s SMEs in the Globalised Market: Access to Finance and
Infrastructure
Some key points need to be
highlighted from the paper presented by Nyugen Thi Thien of Vietnam
1. Vietnam
potential to Advance in the globalize market
·
Low labour cost.
·
Huge local markets for theirs products.
·
Well-skilled workers.
·
Increased access to new IT
·
Well established professional and skill
training system
2. Vietnam’s
SMEs-Difficulties and constraints in accessing to infrastructures.
·
Social/political perceptions towards
privates’ enterprises are not positive that results in discrimination
against them.
·
Unstable business environment that
increases risks.
·
Poor business infrastructure and market
support to SMEs.
·
Increasing competition pressure from larger
firms and outside.
3.
Strategies and programme
+ Macro
economic policies:
·
Terminating the discrimination against
private sector in accessing to resources as compared to SOEs.
·
Removing provisions and regulations that
restrict SMEs in expanding their business, access to finance and
infrastructures.
+
Institutional measures.
·
Promoting of the development of EPZ
·
Development of infrastructure services
·
Centre of trade information
+
Competitiveness promotion:
·
Policy measures relating to
inputs include tax/tariff exemption/reduction; Decreasing input prices of
raw materials and brought-in services, including business support services;
reducing capital costs/interest rates; providing more access to credit
support; removing monopoly of public services providers.
·
Output related policy measures include Credit
support for production for export and export business; Support to insurance
transportation of goods.
·
Reducing tariff on imported
information technology/equipment.
+ Quality improvement
promotion policy measures:
Skill
training and knowledge improvement for workers, managers through improvement
of training facilities, trainers and hence the training quality.
Introduction of new developments and technologies, including information
technologies.
Some
important points need to be highlighted are in the areas of SMEs barriers to
Growth, access to infrastructures issues and Development mechanism for NAM
co-operations.
Paper
4 UNCITRAL’s Model E-Commerce Law – Issues for Adoption and Formulation
§
Pg Kasmirhan referred the participants to
the following documents:
o
UNCITRAL Model Law on Electronic Commerce
with Guide to Enactment (1996 with additional article adopted in 1998)
o
ASEAN Electronic Commerce Legislation
Comparison Table (dated 1 Dec 2000)
o
E-ASEAN Reference Framework for Electronic
Commerce Legal Infrastructure (ASEAN Secretariat 2001)
§
He discussed in lengths some of the major
issues related to the various legal issues on electronic transactions and
the recognition that each countries must adhere to their own legal framework
but at the same time conform to some international standards when dealing
with cross border transactions.
§
He indicated that ASEAN countries have
advanced its efforts to harmonise their respective e-commerce law to that of
UNCITRAL in terms of scope, definition of electronic signature/digital
signature, definition of electronic record/data messages, effect of
electronic signatures and others.
Paper 5 – Striking a Balance
between Governance and Business Growth – Experiences and Best Practices
Ms Mapp’s salient points are as follows:
§
Government’s challenge on e-commerce is the
creation of structural changes that will increase the competitiveness of the
country.
§
The experience of a group of rural women in
Panama, which made use of information and communication technologies to
improve their operations and market their craft industry world wide,
indicates that leadership, human capacity building activities and
perseverance are important ingredients in the success of their business
venture.
§
The legislation in many governments around
the world have not kept up with the rapid changes in the evolving world of
virtual business. Many are now embarking on initiatives that aim to strike a
balance between governance and business growth.
§
Cited the experience of Panama in
formulating its Law No. 43 issued on 31 July 31 2001, that define and
regulate the following:
o
electronic document and signatures
o
entities that certifies electronic commerce
and the interchange of documents
§
The purpose of such law is to minimize the
risk of fraud in electronic transactions and promote business growth.
Paper 6. Kedai Online: Putting Information
Technology To Work For Cooperative’s Retail & Distribution Networks
The
speaker, Mr. Dharma Setiawan Basri, the President Director of PT. Jaring
Kedai Nusantara, Indonesia emphasized several key strategic issues that
critically important for consideration in establishing a successful on-line
trading transactions over the networks especially with particular references
to cooperative’s retail and distribution systems.
Some of
the key learning points shared with fellow members and participants of the
workshop are:
Evaluating pros and cons of e-commerce through the experiences of others
Determining KSFs leading to the success of e-commerce in retail and
wholesale sectors
Focusing on the strategic intent of the business i.e. vision/mission,
goals/objectives and strategies to be applied
Knowing the players/clients in the Digital Market Place
Identifying the major elements of marketing particularly on:
q
Market opportunity
to be exploited
q
Service and
Product to be offered
q
Value proposition
q
Strategic
alliances
The relevance of the above was
emphasized through Indonesian experience on KEDAI Online Business Model that
strategically designed for Consumer Package Goods Industry of Indonesia.
Other
important points that also being emphasized and needs further considerations
are:
q
Logistic cost is very dominant
q
Payment system. The norms of using US
Dollars as a currency exchange terms for international transactions is
suggested for the NAMs members to review. A Gold-based Currency System is
proposed as an alternative to the existing one.
Paper 7. Issues And
Strategies of Implementing E-Commerce HRD Programmes
The important points from Dr Boris’s
papers are:
§
Briefly discussed globalisation by citing
its positive and negative impacts for developing countries, the reasons
behind them and the social risks
§
The main issues of globalisation that
impacts on relationships between countries and peoples:
o
North – South Polarisation and Center
periphery
o
Intensification of antagonisms between
globalising economic bases and state sovereignity
o
Aggravation of conflict between
multinational companies and local firms
o
Slow development of political and legal
superstructures within globalising system.
§
The main resources of the new economy that
is driven by information technologies are knowledge, human potential and
internet.
§
After reiterating the importance of
e-commerce in the new economy, he indicated that human resource is a key
factor in e – business. Personnel should be mobile, flexible, competent,
hardworking and efficient.
§
Cited initiatives of some countries in the
areas of access to telecommunication infrastructures, e-management,
information security, human investments, conditions for e-business
development (tax incentives, etc.)
§
Concluded presentation by posing several
questions that participants can discuss in the workshop sessions
Paper 8. Competitiveness and Use Of Internet And
E-Commerce In The Peruvian SMEs – Focusing on Human Resources
Ms Silivia’s main points
are:
§
After explaining briefly the
characteristics of Peruvian SMEs and profile of internet use in Peru, the
main barriers to internet and e-commerce use in Peru was discussed.
o
Economic barriers
o
Social barriers
o
Cultural barriers including lack of e-skill
o
Technological barriers
§
Peru outlined seven areas where SMEs will
require support to be competitive in the new economy and discussed briefly
each point and what initiatives the public and private sector, either
separately or collaboratively, had taken to promote or improve the use of
e-commerce in Peru. These ranges from introducing banking services to the
creation of a Commission for the enlargement of Internet Use and an
Institute of Electronic Commerce.
§
The main points of the private sector’s
proposal to improve internet access and use of e-commerce were categorized
according tp stakeholders.
o
Government
o
Unions
o
Companies
§
Cited Peru’s efforts in the area of
improving Human Resource in ICT as part of a US $ 43.7 million 5-year
project called HUASCARAN. Part of the project will include the provision of
around 11,000 PCs to several secondary schools in the urban areas of Peru.
§
Government’s support in the areas of
access, regulatory environment, financing and education is important in the
development of strategies and implementation of effective actions.
Paper 9. Small and Medium Scale Enterprises (SMEs)
In Ghana and The Use Of E-Commerce In Fast Tracking Their Development -
Potential And Challenges
Ms Angela’s main points:
§
E-commerce may not be feasible for many
SMEs in Ghana, but a few benefit from using e-commerce particularly those
exploring niche or export markets. These high flyers need to be supported.
§
For the vast majority of SMEs who cannot
afford the setup cost, intervention through ICT is by provision of more
relevant and up to date information. Models for effective information
delivery need to be explored.
§
Ghana’s policy to support SME development
includes emphasis on science and technology, improving linkages between
agriculture and manufacturing, better coordination among institutions
providing SME support services, establishment of public-private companies to
support development of private enterprises, encouraging foreign direct
investments and international trade. These require an ICT framework that is
being developed.
§
ICT utilization is increasing as
electricity and phone line coverage also expands.
§
Utilisation of SMEs in Ghana is very
limited, with lack of capital to purchase equipment as most critical
limiting factor. Others constraints especially in the rural areas are poor
communication links, electricity, lack of credit cards, transportation and
relevance of information form remote sources.
§
Potential for ICT use by SMEs remains
bright as government has recognized the important role of private sector as
engine of economic growth and has instituted policies and programs that
support SMEs. Some of these initiatives include
o
Support to formation of network or clusters
of SMEs
o
UNECA/ECA initiative on prospects for
implementation of e-commerce
o
Reform of school system to develop
technical and productive skills to support industrial development.
Paper 10. Role Of
E-Commerce In The Development Of Small And Medium Enterprises (SMEs) In
Nepal
Main points:
§
Nepal also sees SMEs as an important player
in poverty alleviation and enhancement of employment as they constitute
around 98% of around 3,600 manufacturing establishments. The bulk of these
SMEs are in the rural areas.
§
ISPs exist in Nepal, but internet
utilization is mostly by private sector banks and financial institutions,
NGOs. There are around 100,000 users (2001 estimates), but the level of
penetration of e-commerce is almost non-existent, except for “pashmina”
traders.
§
There are existing websites on handicraft
products, but these needs to be further improved in terms of poor user
interface, information, payment mechanism and export formalities.
§
The development of e-commerce and SMEs are
constrained by the
o
Limited information particularly those
related to marketing or expanding of market opportunities
o
Lack of managerial skills of owners, labour
policies and laws that encourage the availability of competent employees and
their retention by SMEs.
o
Policies or Programs that support the
formation of strategic alliances, resource sharing, subcontracting
arrangements between large and small companies; access to financing, cyber
laws, taxation
o
Short supply of the telecommunication
infrastructure to support IT requirements
§
Current efforts to improve the situation
includes the formulation of IT policy that aims to put Nepal in the global
IT map within the next 5 years.
Paper 11. Promoting
Sustainable Growth And Competitiveness Of NAM’s SMEs In A Globalized Market
Through E-Commerce : Burundi Case
Main points:
§
In 1986, Burundi’s government has
instituted institutional, legislative as well as administrative measures
that are aimed towards the development of the private sector as the
cornerstone of development.
§
These measures have resulted in a slow but
steady economic growth until 1992. This growth was dominated by primary
products and not by the manufactured goods. Since the crisis of 1993, growth
has declined particularly in the manufacturing sector.
§
SMEs in Burundi are faced by constraints
which are interrelated or interconnected:
o
Weak domestic and regional market situation
o
High production cost factors (imported raw
materials for manufacturing, unskilled local labour force, electricity,
telecommunication)
o
Inadequate transport infrastructure and
dependence on external exchanges as it is landlocked geographically
o
Limited access to finance or financial
guarantees
o
High Duties and Social costs (risk to
labour, old age or disability pension)
§
Prospects for Burundi remain high due to
the effort of regional integration (Common Market for Eastern and Southern
African Countries, COMESA).
§
Burundi realizes the benefits of internet
technology and e-commerce in economic growth. It is upgrading its
telecommunication infrastructure for better bandwidth, reliability and
connectivity either through private sector investment in a liberalized
telecommunication industry or with assistance from UNDP. The latter also
includes HRD activities.
§
Recommendations that can contribute to
development of internet include formulation of policies that promote
training, affordable assess cost to service and reduction of duties on
computer equipment, monitor the developments in e-commerce.
Paper 12. Uganda’s ICT Profile
And An Emerging E-Commerce Network For SMEs
Main points:
§
Liberalisation of the telecommunication
sector has increased the telephone density in Uganda. Target is for all 52
districts of Uganda to have points of service by 2003.
§
A National ICT policy, which is being
prepared, is expected to be completed by June 2002. Sector specific ICT
policies are also being prepared.
§
Recognises the benefits of e-commerce in
trade and industry growth and international aid agencies are helping Uganda
create an environment for commerce to flourish
§
Recognises the role of Micro (ME) as well
as Small Entrepreneurs (SE) in the socio economy of the country where they
provide employment to around 10 % of its 24 million population.
§
Constraints faced by ME and SE include:
o
Lack of standardization and quality control
o
Lack of business skills and computer skills
o
Lack of access to credit as well as
marketing
§
Constraints are being addressed by
interventions by government in collaboration with international aid
agencies, NGOs, public and private sectors.
§
One such initiative is the UIP, which is
joint project between UNIDO and the government. It’s main objective is to
build institutional capacities for the development of MSEs and investment
promotion through technology and information networking in support od
agro-based industrial development.
§
One of its subcomponent is the
establishment of a commercial information network that will support MSMEs in
their need for information. The Uganda Business Information Network was
incorporated in September 2000 and is expected to be launched ib January
2002. A company whose shareholders include public/private sector is a profit
making undertaking that is expected to be self-sustaining within 2 years of
operation.
§
Indicated that Uganda’s UBINnet.com could
be part of a NAM wide e-commerce network.
Paper 13.
National Situation of Small and Medium Enterprises in
Zambia and Their e-Commerce Readiness
Main points:
§
Support services for SMEs have evolved both
in terms of form and substance since the mid 1970s. From an NGO run Village
Industry Service Organisation, services to SMEs were taken over by a
government body, the Small Industries Development Organisation (SIDO), which
was established in 1982. This body had successes in its broad range of
services to SMEs such as training, undertaking feasibility studies, business
counseling, and marketing. To offer better services including financial
support services to SMEs, SIDO was replaced by the Small Enterprises
Development Board (SEBD) in 1996.
§
Zambia has 5 ISPs. While Zambia recognises
the importance in national developments it is faced with several constraints
which includes:
o
Absence of a national IT policy
o
High cost of access to internet and
computer equipment
o
Low density of telephone connectivity
o
Security to handle on-line payments, very
few people with credit cards.
o
Legal and Regulatory Environment needs to
be strengthened.
o
Awareness and skills needs to be promoted.
§
Zambia’s priority is the development of a
national IT policy that covers the whole range of issues and sectors in the
socio-economy that includes e-commerce. Its current effort in e-commerce is
for the establishment of a forum on e-commerce development and this is being
spearheaded by the Ministry of Commerce, Trade and Industry.
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