Saturday, December 6, 2008

Internet power 'fails the poor'-I

But even if these more advanced technologies were in place, the report still deemed it unlikely that big buyers would forge important business relationships without some sort of personal contact.

"People in international trade want ongoing relationships, the build-up of trust and quality," Mr Humphrey said, stressing that the idea of a mass-take up of e-commerce trading had been a misconception.

Niche success

There are, of course, some shiny examples of newfound trading partners that have met courtesy of the world wide web.

A small trading company in Nairobi, for example, is selling macadamia nuts to Switzerland, carrots to Romania and oranges to Ukraine.

And an international avocado buyer in Chile has stumbled across a new supply source in South Africa, thanks to the power of the search engine.

But such success stories are likely to be confined to niche markets and remain small fry in terms of global trade, Mr Humphrey said.

Hard sell?

One worry is that software and telecoms suppliers are continuing to over-hype the power of the internet, encouraging developing countries to invest in fancy equipment they do not really need.

"There is still a big push from IT suppliers and telecoms companies to sell and developing countries are still susceptible to the hype, although a degree of cynicism is beginning to creep in," Ms Mansell said.

Improving e-commerce infrastructure in poor countries is still important, the report argues, but in order to maintain relationships rather than generate them.

That means that the more sophisticated technology needed to operate online trading platforms is often not necessary.

"E-commerce should follow the business opportunities rather than trying to create them," said Ms Mansell.

The most likely scenario for trading over the internet, she says, is not an open marketplace but a place where buyers invite offers from selected sellers.

"And that relies on personal contact and relationships having been established," she says.


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