WRITTEN QUESTION E-1449/00

by Wolfgang Kreissl-Dörfler (PSE) to the Commission

(10 May 2000)

Subject: Impact of electronic commerce and the Internet economy on development cooperation

Over the next few years electronic commerce via and on the Internet (e-commerce) will come to play an important role in the world economy. Through the e-Europe initiative the EU has shown that it has recognised the implications of this change and intends to meet the resulting challenges. Likewise, at the Ministerial Conference in Geneva the WTO set up a working party whose remit will focus on the extent to which current WTO rules are applicable to e-commerce.

However, the development-policy implications of the digitalisation of the world economy have been disregarded, or dealt with only cursorily, in the documents drawn up by the WTO working party and in the measures taken by the EU in this connection.

Could the Commission answer the following questions:

1. Is there not an urgent need to shift the emphasis of development cooperation partly towards the establishment or development of electronic infrastructure in order to prevent the further marginalisation of the developing countries on electronic markets?

2. Have plans been drawn up concerning that shift in emphasis, e.g. support for the establishment of electronic trade points, as encouraged and developed by Unctad?

Answer given by Mr Nielson on behalf of the Commission

(6 July 2000)

As the Honourable Member has indicated, the Commission launched, at the recent Lisbon European Council, the e-Europe initiative, an important example for developing digital economic concepts and social inclusion in Europe. In the same spirit, the Commission has suggested to the Group of eight most industrialised countries (G8) launching the e-development initiative at the Okinawa Summit next July 2000. The e-development initiative seeks to promote the dialogue with developing countries aiming at their integration into the global economy. The Commission is prepared to play its part. The Commission has in particular suggested to focus on three key areas: developing infrastructures and improving connectivity, fostering the provision of basic social services and building human capacity, encouraging market friendly policies and ensuring policy coherence.

Indeed the Commission is of the opinion that an information society can take root in developing countries only by looking at a broad spectrum of inter-related issues, electronic trade points being only one of the many aspects.

The Commission is already active operationally in support of an information society in developing countries. In particular the Commission has put in place a major information and communication technologies (ICT) programme for the Mediterranean region. The Euro-Mediterranean information society initiative (Eumedis) encompasses five strategic sectors including e-commerce and technologies for business process re-engineering. On 25 March 2000 a call for proposal for cooperative Euro-Mediterranean projects in the field of e-commerce and technologies for industries was launched (with a total financial coverage of 14 million).

A comparable programme for Asia is on its way and a equivalent effort for Latin America should become operational soon, covering also several areas, e-commerce included.

In May 2000, the Commission signed an agreement for the co-financing of the virtual university for Africa, together with the World Bank and other donors. The virtual university for Africa will deliver teaching via the Internet.

It is anticipated that a G8 e-development initiative will increase the focus and coherence of donor support for ICT initiatives in developing countries.

The new communication technology is not, however, an easy short cut for the poor people in the world. Rather, it represents a must for the administrative and intellectual elites and the emerging business in developing countries if they are to avoid further marginalisation in the process of globalisation. Billions of people have not yet spoken in a telephone and 2,2 billion have no access to electricity.