JOB/GC/133  
 
21 July 2017  
(17-4001) Page: 1/2 
General Council  Original: English  
 
WORK PROGRAMME ON EL ECTRONIC COMMERCE  
REPORT OF PANEL DISC USSION ON "DIGITAL I NDUSTRIAL POLICY AND  DEVELOPMENT"  
Communication from the African Group  
The following communication, dated 20 July 2017, is being circulated at the request of the 
delegation of R wanda.  
 
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1.1.  The African Group organized  a Panel Discussion entitled "Digital Industrial Policy and 
Development " for all WTO Members on 29 June 2017, in Room W. Specific topics for discussion 
included scoping the digital divide, industrial pol icy and catching -up in the digital economy, as well 
as perspectives on the importance of digital rights.  
1.2.  The Panel Discussion set out the depth of the challenges  facing developing countries , 
regarding the digital divide, particularly for those Members str iving to industrialize .  
1.3.  At this Panel Discussion, it became apparent that as much as a digital transformation is 
underway, and that digital technologies and specific technical solutions are emerging, many of 
these will seriously disrupt economies around t he world. While the world is getting more 
connected, international bandwidth is unequally distributed and that most developing and least 
developed countries continue to lag far behind. According to the ITU, more than half of the world 's 
population is not u sing the Internet, notably 75% of people in Africa.  
1.4.  The world is confronted with the reality of a deep, persistent and widening digital divide. If 
this is not addressed, it will drive further technology, income and infrastructural divides. The Panel 
Discu ssion also highlighted the extremely high market concentration levels existing in the current 
global e -commerce space - evident both in terms of how e -commerce trade is distributed across 
the global economy, and in terms of the number of firms that dominat e this space, notably in 
terms of market capitalization.  
1.5.  Developing countries need to look beyond the possible benefits of digital solutions, and to 
start assessing the impact that the lack of digital and technological capabilities would have in 
cementing  and widening the technology divide.  
1.6.  The Panel Discussion was also framed to identify the types of national measures that some 
Members have employed to build their national capabilities and to place them in positions of 
leadership in global e -commerce tod ay. We have learned that while Members paths towards 
achieving global leadership in the digital economy have not been identical, they do require active 
policies and deliberate efforts to develop the necessary infrastructure and to manage digital flows 
that enable national digital catch -up.  
1.7.  Another lesson is that digital integration needs to be preceded by building national 
capabilities through what may be termed digital industrial policy. Even though there is no single, 
theoretical policy or approach that can be prescribed, the conclusion drawn is that Members ' have 
used the policy space to create, nurture, and develop their domestic industries, either through 
"smart industrial policy tools " or "powerful protectionist tools " that nurture this development. F or JOB/GC/133  
 
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  instance, it was highlighted that some countries have used policy tools such as data localization 
requirements, internet filtering, and technology transfer requirements (i.e. disclosure of source 
code) to promote domestic digital firms and allow them to  catch -up with the leading multinational 
firms.    
1.8.  It was noted that attempts to introduce a "digital trade agenda " in the WTO multilateral 
framework will constrain the ability of governments to implement industrial policy and catch -up. 
Hence, in the long -term, trading developmental policy space in this area could pose a serious 
threat for developing countries, and attempts to curtail this policy space would prevent developing 
countries from building the capacities, and skills to close the widening technolo gical gap.  
1.9.  What also emerged at the Panel Discussion is the importance of digital rights, in particular 
"data". Data has been described as the raw material of the digital economy; it is the "new oil " of 
the future. There is value embedded in the control, management, and flow of data, and the way 
developing countries treat it will determine which development path they take in the digital age. 
For instance, it was highlighted that currently, citizens ' data is being given away for free, and this 
data is being used for the commercial benefit of the largest digital firms. Developing countries 
must therefore start thinking of how to also use this raw material for their own economic 
advantage.  
1.10.   Another lesson drawn from the Panel Discussion is that a balance must be sought on the 
international agenda on issues pertaining to electronic commerce, Internet governance and ICT 
policy. In other words, the role of the WTO should be carefully examined vis-à-vis the rol e of many 
other international organizations  that bear responsibility, competence and policy authority over 
certain issues being proposed for WTO oversight. These issues include, and are not limited to 
spam, e -authentication, e -signatures, and consumer prot ection.  
1.11.   In conclusion, the Panel Discussion emphasized that:  
 The digital divide is not getting smaller, and is in fact likely to persist;  
 Policy space is paramount for Members who want to develop their digital industrial policy;  
 A thorough assessment is  required, particularly for developing countries, to assess the 
opportunities and threats that digital transformation will bring;  
 The asymmetrical nature in the global digital economy points to a need to focus on equity 
and not only efficiency if inclusiv e and sustainable growth is to be achieved;  
 The implications of the Fourth Industrial Revolution will be far -reaching, and it is critical to 
consider all policy options for countries that are striving to industrialize .  
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