Professional Documents
Culture Documents
FORUM
Issue 2 INTERNATIONAL TRADE
The digital
economy
MESSAGE FROM
Transforming lives
through e-solutions
ARANCHA GONZÁLEZ, Executive Director, International Trade Centre
E
ver since the World Wide Web was estimated to be well below 2% suggesting
conceived at CERN on the Franco- there is a vast untapped potential in this area.
Swiss border and released into the The International Trade Centre’s (ITC)
public domain in 1993, the internet has work in this area addresses the policy dimen-
continued to spin out new opportunities sions of e-commerce, the infrastructure
for information and commerce. News has needed to make the digital economy work,
become instant, we can stream films and and supporting on the ground e-solutions
music, and in many parts of the world we transactions. E-commerce – B2C and B2B conditions: all of which appears at first
can buy whatever we want from online – will play a key role in eliminating poverty highly opaque and beyond the capacity of
retailers. and achieving Goal 1 of the 2030 Agenda small firms operating out of developing
Online retailing – or e-commerce – for Sustainable Development. E-commerce countries. And yet once these compliance
has become a huge market, with global makes it easier for small and medium-sized issues are solved the world of e-commerce
business-to-consumer (B2C) transactions enterprises (SMEs) in developing countries begins to open up: financial transactions
expected to total more than US$ 1.5 trillion to trade across borders. become easier and accounts can be opened
in 2016. The global business-to-business Easier, however, does not equal per- on the world’s biggest marketplaces.
(B2B) e-commerce market is even big- fect. Many challenges remain. A recent Through this exercise we are building
ger, and is expected to be worth close to ITC report, Bringing SMEs onto the e-Com- trust between potential buyers and sell-
US$7 trillion by 2020. merce Highway, identified four major chal- ers. By allowing people to touch, feel and
While some of the most celebrated lenges for developing countries to succeed taste products, and confirm they are of high
e-commerce successes are based in devel- in the world of online retail: establishing an quality, these customers and sellers become
oped countries, companies in developing online presence for business, international ambassadors for greater online trade from
countries are rapidly catching up. Alibaba, e-payments, international delivery and after- developing countries.
the Chinese online retailing giant, was sale services. Step by step, we are tapping the poten-
founded just over a decade ago and is today To help developing countries and their tial of e-commerce to ensure that SMEs in
eclipsing many of the traditional online SMEs improve their e-commerce capacities, developing countries can play a greater part
retailers in terms of sales (see pages 16-17). ITC has teamed up with a range of partners, in this sea-change in global commerce.
In all developing countries, e-commerce including large players such as eBay and Bringing developing country SMEs onto
holds tremendous promise for spurring eco- DHL, as well as smaller specialised firms the e-commerce highway will also speed up
nomic growth and creating new opportuni- in related fields, such as legal advisory ser- development and bring us closer to eliminat-
ties. One only has to look at how Rwanda vices. In the past year we organized a series ing poverty.
is working to create digital platforms to mar- of pop-up stores – dubbed e-Com Souks – in
ket and sell products ‘made in Rwanda’ to Switzerland and Rwanda to raise awareness
understand that the size of economy of land- about goods made in developing countries
locked countries need not hinder moving in such as Cote d’Ivoire, Ethiopia, Morocco,
the direction of digital solutions. By 2018, Senegal and Syria (see page 31-32). And at
Latin America B2B e-commerce is expected the end of June, we organized an e-Com-
to grow to around US$ 90 billion and Afri- merce Caravan that travelled from these
ca’s B2C e-commerce market is destined to countries to Geneva and Zurich.
hit US$ 50 billion. Despite those figures, A major challenge is to overcome the
Latin America’s is just over 4%, and Africa’s complexities of handling duties and taxes
share of the global e-commerce market is and complying with local fiscal and legal
| 12
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intracen.org Cover photo:
ITC / Shutterstock.com
Reprints
Articles from this
magazine may be
freely reprinted, with
attribution to the author
and to International Trade SPECIAL REPORT
Forum, ITC. A copy of
the reproduced article
would be appreciated. MAKING E-COMMERCE WORK FOR ALL ...............................................14
Copyrighted photos may Marcos Vaena, Chief, Enterprise Competitiveness, International Trade Centre
not be reproduced.
CROSS-BORDER E-COMMERCE HELPS SMEs
REACH GLOBAL MARKETS .......................................................................16
Shi Dongwei, Vice President, Alibaba Group
|8
THE FACES BEHIND THE PROJECTS
ANALYSIS
© Shutterstock.com
ITC IN ACTION
| 22
SRI LANKA SWEETENS ITS OFFERINGS OF FRUITS,
VEGETABLES FOR EXPORT.......................................................................35
Susanna Pak, Staff Writer, International Trade Centre
© Laurena Arribat / ITC
| 33 | 35
SPECIAL REPORT PUBLICATIONS
IN LINE WITH GOING ONLINE: USING E-COMMERCE RESOURCES ON TRADE AND EXPORT DEVELOPMENT......................38
TO TAP NEW MARKETS..............................................................................30
Susanna Pak, Staff Writer, International Trade Centre
News Brief
Business leaders call for WTO to address pressing issues for business community
Business leaders on 30 May met with the World on trade-related matters. The Trade Dia-
© WTO
Trade Organization (WTO) at its Geneva logues event brought together over 60 busi-
headquarters to discuss how to better address ness leaders to discuss the challenges and
current needs of the global business commu- opportunities they face in conducting trade
nity. Among several things, they urged the operations and to discuss how the WTO can
WTO to look at how to improve e-commerce, help in dealing with them. The attendees were
establish rules to better facilitate services and from small and large enterprises, from devel-
investment flows, and enhance the support for oped and developing countries and from a
micro, small and medium-sized enterprises. variety of sectors. The event was held at the
The event was a part of Trade Dialogues, request of the International Chamber of Com-
a new WTO initiative aimed at providing merce (ICC) and the B20 group of leading
stakeholders from the business community independent business associations from G20
with the opportunity to discuss their concerns economies. It was facilitated by the WTO.
© ITC
commitments are down
While support for programmes targeted at for LCDs, with 55% now being offered in the
assisting poorer countries to expand their form of loans rather than in grants. An expla-
participation in global trade continues to be nation for the drop in commitments could
provided, funding for trade facilitation and be that several donors are in the process
least developed countries (LDCs) fell in 2014, of revising their Aid for Trade strategies.
according to the Organisation for Economic The European Union will not have a new
Co-operation and Development (OECD). strategy ready before the beginning of 2017.
The OECD said during an Aid for Trade On the other hand, actual disbursements
session of the Committee on Trade Develop- of total aid commitments have had continued
ment on 25 May that contributions for trade growth every year of between 5% and 10%. doing so due to the United Nations Sustain-
facilitation support fell from US$ 613 million Aid commitments for private sector develop- able Development Goals, which encour-
in 2013 to US$ 362m in 2014, a decline of more ment, in particular for energy generation and age partnerships with the private sector.
than 40%. The OECD also said the terms of productive capacity building, have risen the The OECD said that LDCs still receive the
support had become less accommodating last couple of years and are likely to continue highest amount of aid per capita.
Countries (LDCs) that took place in Turkey Climate Change. New initiatives such as the
in late May. establishment of a governing council for the
The three-day meeting, co-organized Technology Bank for LDCs to support their
by the Government of Turkey and the United access to and increased use of science,
Nations Office of the High Representative for technology and innovation were launched.
the Least Developed Countries, Landlocked Other initiatives and programmes focused
Developing Countries and Small Island on enhancing LDC access to duty-free and
Developing States, reviewed the progress of quota-free markets and offer favourable con-
48 LDCs in sustainable development since ditions that ensures that more exports items
the adoption of the IPoA in 2011. qualify for preferential treatment. Increased
A call for greater support and concrete Several of the suggestions for new imple- commitments to boost Aid for Trade and
actions for the world’s most vulnerable mentations were based on actions items from enhance the role of the UN in supporting
nations were among the outcomes of the the 2030 Agenda, the Addis Ababa Action LDCs to attract higher inflows of foreign
Midterm Review of the Istanbul Programme Agenda, the Sendai Framework for Disaster direct investment were also emphasized.
Trade plays a major part for any country that wants to raise
its standards and lift its population out of poverty
© UNIDO
MARGINALIZED
Landlocked, remote and small economies
are marginalized by costs that tend to reflect
geography, not capacity. Producers in low- The total amount of development aid Chinese-funded project will cut transport
income countries are often competitive at reached a new high in 2015. Despite con- costs in half, increase regional trade and
the farm and factory gate but are usually tinuing economic woes in many OECD improve access to port and global trade for
priced out of the international market. More countries and the refugee crisis in Europe, four landlocked East African countries.
often than not this is a result of cumbersome total aid reached US$ 131.6 billion. Addi- The same factors that contribute to
border procedures, poor infrastructure, tional development aid from China, Arab higher trade costs also inhibit regional
a lack of finance and complex standards. states and Latin American countries helped integration. In just five years, exports from
It was in response to these issues that make that achievement possible Colombia, Mexico and the Central Ameri-
the Organisation for Economic Co-operation can countries increased by 50% as a result
and Development (OECD) and the World FOREIGN DIRECT INVESTMENT of regional efforts to improve infrastructure
Trade Organization (WTO) launched the Aid At the same time foreign direct investment and regulatory frameworks.
for Trade initiative 10 years ago. Its impact is five times greater than development Trade initiatives are most effective
of has been largely positive: firms have been assistance. However, even more private when developing countries work together
enabled to develop new products, increase investments are needed for clean energy, and donors support their efforts. Cutting
exports and cut costs. manufacturing plants and greener agricul- costs through trade facilitation and Aid for
Aid for Trade has helped create jobs, ture. Some US$ 20 billion is expected to be Trade will contribute to better and faster
improve workers’ skills and working condi- invested around the world every year over development.
tions, and led to improved environmental the next 15 years. No doubt, billions of dol- Building capacity for trade is an ongo-
performance. A 2013 OECD study showed lars spent on development assistance each ing process. We are the first generation in
that US$ 1 invested in Aid for Trade gener- year will have a greater impact if coupled human history with the knowledge and
ates US$ 8 worth of trade for all developing with private investments in green develop- resources to end poverty and promote sus-
countries and US$ 20 for low income coun- ment and trade in poor countries. tainable development. We need to make
tries. The same study showed that female Almost a million Africans join the sure that aid money is invested in develop-
workers are empowered by trade liberaliza- labour market every month and only private ing countries in a sustainable way. But the
tion, which often leads to more work places investment can provide the jobs needed. best thing we can do for people and the
for women. These are impressive returns on Development assistance can be used to planet is to identify and copy policies that
investment. reduce risk and mobilize private invest- actually improve lives.
Development aid is also an important ments. Guarantees, soft loans and equity
Note: Since this article was written, Erik Solheim has
source of funding for least developed coun- investments funded by development aid can
been appointed Executive Director of the United
tries. However, economic growth alone will help attract investors to Ethiopia’s growing Nations Environment Programme.
not be enough to eradicate poverty even if textile industry.
all African countries grew Chinese-style at The beginning of a new railway con-
10% for the next 15 years. To end poverty necting landlocked Burundi, Rwanda, South 1. Ethiopia is rapidly becoming an attractive location for
we need specific policies targeting the most Sudan and Uganda with the Kenyan port manufacturing as a result of competitive labour costs.
vulnerable countries and people. town of Mombasa is a great example. The 2. Shanghai seen at night from the Huangpu River.
No country is an island
NEVEN MIMICA, European Commissioner for International Cooperation and Development
© EC / Seyllou Diallo
A
t a time of globalization and rapidly jobs in developing countries and making sustainable development. Through Trade for
changing economies, the European it a vital ally in the fight against poverty. All, the EU seeks to support development
Union (EU) can only be as strong as its The EU has been assessing how it by enabling countries to better integrate into
partners, which is why well-founded trade can improve its trade relationships with regional and global value chains.
relationships are of crucial importance. countries worldwide and engage the pri- The new strategy will allow us to revisit
However, if we want to continue to alleviate vate sector. To address this challenge, the trade negotiations and to develop the means
poverty, eliminate hunger, improve work- European Commission in October 2015 to put those principles into practice. It allows
ing conditions and boost economic growth launched a new trade strategy – Trade for new initiatives and opportunities in Africa,
worldwide, we need to direct our focus to for All – a new approach to make Euro- the Asia-Pacific region and Latin America.
developing countries. pean trade policy more effective and more European cooperation is crucial in
Leaving no one behind is at the core transparent. improving trade in developing countries.
of the Sustainable Development Goals and As the biggest economy, trade player and
this objective can only be achieved if we TRADE FOR ALL investor in the world, it is critical that the
fully use the potential of trade to support For developing countries, the strategy EU continues to support developing coun-
sustainable economic growth. The pri- aims to transform trade agreements and tries as partners on their path to sustainable
vate sector is a driving force for economic trade preference programmes into efficient development, economic success and inde-
growth, providing approximately 90% of tools to promote fair and ethical trade and pendence.
© EC / Fiona Goodall
cooperation is funded by a number of
sources. Up until 2011 its Aid for Trade
commitments amounted to some €18.7
billion (US$21.2 billion). These funds
have been allocated through geographical
instruments such as the European Devel-
opment Fund (in the African, Caribbean
and Pacific countries), the Development
Cooperation Instrument (in Asia, Latin
America and South Africa), and the Euro-
pean Neighbourhood and Partnership
Instrument (in the neighbouring regions
of the EU).
In addition, a number of thematic pro-
grammes have been implemented which
focused on addressing issues other than geo-
graphical cooperation. In short, the EU and
its member states remain collectively, and
by a large margin, the world’s most signifi- Sri Lanka is another country with which
cant Aid for Trade donor. The EU’s trade support for developing the EU has longstanding development coop-
countries goes beyond sheer financial eration. This was reinforced by announcing
PREFERENTIAL ACCESS aid. There is a long and fruitful new support programmes. One of them
The EU’s trade support for developing
tradition of granting preferential will be a €8m trade-related technical assis-
access to exports from developing
countries goes beyond sheer financial tance project to stimulate inclusive trade-
countries to European markets.
aid. There is a long and fruitful tradition led growth and regional integration. Such
of granting preferential access to exports assistance will facilitate Sri Lankan integra-
from developing countries to European The EU has a long-term cooperation tion into regional and global trading systems
markets. This encourages specific types of with the African, Caribbean and Pacific and help the country develop more efficient
exports, stimulating economic activity and (ACP) countries, which received total of trade policies, improve competitiveness and
development. €247 million for trade and private-sector comply with international standards.
This approach has proven beneficial development through the 10th European These projects represent but a quick
to developing countries, according to the Development Fund (EDF). EU collaboration look behind the curtain of long-lasting EU
2015 study ‘Assessment of economic ben- with ACP countries continues under the trade partnerships and commitments to
efits generated by the EU trade regimes 11th EDF, through which the EU supports developing countries. Supporting develop-
towards developing countries’, which regional programmes with €3.3 billion, ing countries on their path to sustainable
looked at the economic benefits generated largely targeted to support regional eco- economies is not only a matter of financial
by the EU trade regimes for developing nomic integration. Another €600m are set assistance, it is a solid pillar in consolidating
countries. The study confirms that the EU aside for intra-ACP support to private-sector partnerships that will benefit both sides for
market is crucial for developing countries, development and investment. years to come.
with 42% of total imports from develop- A telling example is Paraguay. The EU The ongoing preparations to revise
ing countries to the EU27 in 2012. It also will support the South American country the European Consensus on Development
reveals that the EU is the largest market for with €168m in the 2014-2020 period, of Policy and to redesign our relationship with
imports from the least developed countries which €20m were allocated to private-sec- the African, Caribbean and Pacific countries
(LDCs), with 60% of total imports from the tor development and trade. This support is offer an opportunity to further improve the
LDCs going to the EU. meant to increase economic diversification coherence between development and trade
The study reveals a double positive and foster inclusive growth, in particular policy. We should seize this opportunity to
impact of EU trade policy towards develop- to support government efforts to create keep what is working and change what can
ing countries, which showed a significant a competitive private sector by support- be improved.
increase in their exports as well as in their ing small and medium-sized enterprises
economic diversification. It comes perhaps with strong export potential. In addition,
as no surprise that this is even stronger for we are also assisting Paraguay’s economic 1. A youngster hones his electrical skills at an EU-funded
LDCs, one of the reasons the EU’s Agenda integration to improve its external trade project for street children in Dakar, Senegal.
for Change targets the most needy countries performance by simplifying customs pro- 2. European Commissioner for International Cooperation
while focusing on sectors with the biggest cedures and overcoming technical barriers and Development Neven Mimica visits Vanuatu
potential impact. to trade. Agricultural Research and Technical Centre.
T
he rise of affordable and accessible shortcuts. Some attempt to bypass foreign
technology has transformed con- ownership or payment restrictions by rely-
sumer behaviour in recent years. ing on banking arrangements of family or
Engaging in online transactions is today friends. Novice firms often ship their prod-
commonplace across the world. From ucts with no regard to fiscal or legal require-
checking your bank account balance ments in the target market.
to paying bills and ordering groceries, These shortcuts result in disappoint-
e-commerce has transformed the way ingly short-lived trade as public authori-
consumers and businesses engage with ties and platforms move to shut down the
each other. For the citizens of developed business and customers reject goods deliv-
countries e-commerce is becoming busi- ered with unanticipated taxes and duties,
ness as usual. Online retail is estimated by destroying any profitability and reputation
the Centre for Retail Research to account the small firm may have had.
for 13% of consumer spending in the These apparently simple barriers are
United States of America, around 10% in compounded by a lack of affordable technol-
Europe and much more in some countries. ogies, services and affordable international
Business-to-business sales are estimated to transportation, resulting in the low levels
be as much as fifteen times as large. of presence of African firms in international
By any measure e-commerce is big e-commerce.
business. For example, by 2018 Africa’s A recent publication by the Interna-
e-commerce market is projected to soar to tional Trade Centre (ITC), International
US$ 50 billion from US$ 8 billion in 2013. e-Commerce in Africa: The Way Forward,
It also represents a major change in the provides additional references on the com-
way trade is conducted and offers great mon concerns faced by African SMEs as
potential to contribute to the Sustainable well as key recommendations on actions
Development Goals. However, developing by both the public and private sectors to
countries are not yet taking full advan- help overcome some of these barriers.
tage of this opportunity. For instance, best
estimates put the current share of African STRONGER TOGETHER
enterprises in international e-commerce Working individually, small enterprises are
below 2%, a share which could and should at a cost disadvantage. By bringing them
be much higher. together it is possible to eliminate or alle-
viate a number of barriers. We have seen
E-COMMERCE instances where this has been used very
MISPERCEPTIONS effectively to open up new possibilities for
Contrary to the perception that all e-com- vendors in Africa: ITC is supporting the
merce markets are open, African small and establishment of collectively owned and
medium-sized enterprises (SMEs) are often managed structures as a foundation of our
© Shutterstock.com
simply barred from listing products or sign- work to promote greater participation of
ing up to payment solutions on international SMEs from developing countries in cross-
platforms. Many therefore take ill-advised border e-commerce.
© Shutterstock.com
share international transportation
costs by consolidating outbound
shipments and gaining leverage
for negotiating more attractive
transportation rates..
© Christopher Penler
J
unpu is a small village of 3,000 resi- through more than 3,000 online stores oper- 10% of the population is engaged in online
dents in China’s southern province ated from the village. The village also has retailing and generating at least 10 million
of Guangdong, which was very poor a ‘Taobao Academy’ providing training to yuan (US$ 41.5 million) annually in online
before the fast development of e-commerce aspiring young people who have just started sales. E-commerce has brought tremendous
in China. Today, more than two-thirds of their online businesses. changes to these rural areas, many of which
the residents make their living on Taobao, This phenomenon is not limited to were previously isolated from urban markets
China’s largest e-commerce site, selling Junpu. By the end of 2015 China had some because of the lack of channels to advertise
local produces and other popular products 780 Junpu-style ’Taobao villages’ across the and deliver local products to consumers.
to domestic and international customers country, which is defined as any place where Through Taobao’s integrated solutions, the
UNDERESTIMATED MARKET
Cross-border e-commerce is perhaps the
fastest growing segment of global trade, Trade Platform, or e-WTP, in the context
growing from practically zero two decades As market conditions and regulatory of the G20 to facilitate the public-private
ago to an estimated US$ 1.92 trillion glob- framework improve, cross-border dialogue with the policy makers for better
ally by the end of 2016. This is only a frac- e-commerce has the potential business environment for SMEs engaged in
tion compared with the size of the domestic to become a prominent form of cross-border e-commerce.
international trade.
e-commerce markets in many countries. For As Jack Ma, the founder of Alibaba
instance, online retail now accounts for 13% Group, has said, the company only does well
of consumer spending in the United States provides SMEs operating on its e-commerce when the SMEs on its platforms do well. As
of America and around 10% in Europe. In platforms with microloans. To help increase the group globalizes, it is taking its commit-
China, domestic e-commerce was estimated trust between suppliers and buyers, the com- ment to SMEs growth beyond China’s bor-
at US$ 2.8 trillion in 2015. As market con- pany launched a free product called Trade ders. Junpu’s Taobao Academy now regularly
ditions and regulatory framework improve, Assurance. According to the previous authen- receives delegations from foreign countries to
cross-border e-commerce has the potential tic trade records, Alibaba could provide an provide trainings to SMEs around the world
to become a prominent form of international amount of assurance up to US$ 1 million for on how to do business on Taobao. The group
trade, particularly for the consumer prod- the Chinese suppliers on its platforms. If the has recently launched a SMILE (small and
ucts with diverse demands. supplier fails to ship the products on time or medium industries leveraging export) plat-
the product quality does not meet the stand- form in India that provides trading solutions
EASY BUSINESS ards set in the contract, Alibaba will directly such as financing, logistics, inspections and
Alibaba Group, which owns Taobao, oper- refund the payment made by the buyers certifications, and training for SMEs.
ates with a mission: make it easy to do busi- within the amount of trade assurance. This Cross-border e-commerce is the future
ness anywhere. Small and medium-sized can provide a lot of confidence and protec- of the global trade and Alibaba stands ready
enterprises (SMEs) have always been at tion to the overseas buyers. to help SMEs catch that wave and expand
the heart of Alibaba’s operations. It strives Alibaba’s vision is to build the future business globally.
to make international business for SMEs as infrastructure of commerce. In coming dec-
simple and cost-efficient as possible. It has ades the company will contribute towards
built a comprehensive ecosystem for SME building a global e-commerce market with-
e-commerce and the services cover virtually out boundaries. Therefore, it is actively
all key areas essential for SMEs, including pushing for better policies for global trade.
financing options, payment, shipping, deliv- The implementation of the Trade Facilitation
ery choices and logistics solutions. Agreement by the World Trade Organization
Alibaba strives to help SMEs to scale up and its members will significantly reduce the 1. Alibaba’s shares began trading on the New York Stock
Exchange in 2014.
and grow. For instance, to help overcome trade costs for SMEs. Alibaba is also calling
2. What shall we buy today?
challenges of access to finance, Alibaba for the establishment of an Electronic World
S
ince the birth of the World Wide Web
in 1990 the world has witnessed the
beginning of an extraordinary fourth
wave of industrialization. Information and
communication technologies (ICTs) from
computers and smartphones to mobile apps,
networked smart sensors, web-enabled
drones and cars now pervade the personal
and professional lives of those living in the
industrialized world.
At the International Telecommunica-
tions Union (ITU), the United Nations spe-
cialized agency for ICTs, we celebrate the
fact that more than 3.2 billion people are
connected to previously unimaginable pos-
T
he battle against unemployment con- Increasing labour productivity has been The Global Opportunity Report, by
tinues to rage and nowhere more so the focus of policymakers and business leaders DNV GL, the United Nations Global Com-
than in developing economies. There is alike for decades. The aim is to produce more pact and Sustainia, shows leaders around
good reason for that. For example, in Africa goods and services with fewer hours worked. the world view unemployment as the most
more youths will enter the labour market Innovations also tend to focus on increasing pressing global risk – but when presented
in the next 15 years than in the rest of the labour productivity and as a result we are rac- with 15 different opportunities for cor-
world combined. Systemic change is needed ing towards an era we could define as ‘post- porate action the majority of respondents
to reverse the trend of jobless growth by job.’ Robots and machines demand no salary; rated opportunities for job creation as those
shifting focus from labour to resource pro- only electricity is needed for their work. In with the most promising impacts potential.
ductivity to re-design employment markets short, business has been incentivized to elimi- It points to a readiness to re-think business for
fit for the 21st century. nate jobs when we need them more than ever. job creation. The recently published Sustainia
OFF-GRID SOLUTIONS
Half the global population could be best served
with pay-as-you-go solar technology for energy
instead of grid-based services. This certainly
applies to Africa, where consumers at the bot-
tom of the income pyramid are best served by
off-grid solutions. An example of a company
providing this kind of opportunity is M-Kopa,
an East Africa-based enterprise delivering off-
grid solar energy to financially vulnerable com-
munities. Household solar kits are acquired for
a US$ 30 deposit. After 365 daily payments for LOCAL FABRIC, LOCAL SKILLS creation. It is shifting productivity from
less than the daily cost of kerosene, the buyer African cities are expanding at an almost labour to resources. Using more labour
owns their own solar system and becomes his unmatched rate. However, almost 200 mil- and equipping people with relevant skills
or her own energy producer. lion people live in slums and with an annual requires more designers and supervisors
The business model of M-Kopa is labour urbanization rate of 4%, that number is on-site, which can increase construction
intensive because once consumers acquire likely to rise. It suggests there is an urgent costs. Policymakers need to step in and
ownership of their solar kit, the relation- need to re-think construction and urban enable these businesses to create jobs by
ship between M-Kopa and the consumer planning as untapped tools for job creation incentivizing hiring and increasing the
shifts from product to service. Consum- and sustainable production. costs of harmful natural resources use. In
ers are offered around-the-clock assistance Another example is the Mass Design short, it requires systemic change.
with their solar kits, which consequently Group, a company based in the United
demands high labour inputs. This business States of America and Rwanda that is aim- FROM BUSINESS TO SYSTEM
model is trickling up from Africa to Europe, ing to improve people’s lives through archi- If we are to achieve the SDGs, we need
with even IKEA, the Swedish furniture tecture and by employing mainly local staff, business models that require high inputs
giant, offering off-grid household solar kits. both skilled and unskilled. Unskilled people of labour, which is good news for the bat-
Currently M-Kopa operates in Eastern receive training, providing them with mar- tle against unemployment. Businesses such
Africa and in Ghana in Western Africa. How- ketable skills, while skilled workers are given as M-Kopa and Mass Design Group are
ever, a major barrier to expansion is the lack an opportunity to improve their crafts. Mass already shifting productivity from labour to
of mobile connectivity and mobile banking Design Group is part of the ‘lo-fab,’ or locally resources, which is true for all forms of cir-
options for businesses to unlock access to fabricated, movement and is using mainly cular business models as well. A shift from
consumers by enabling them to pay the daily local inputs for the construction, which linear to circular production requires labor-
rates and user charges. A greater degree of reduces the need for transportation around intensive business models, such as research
digitalization of the economy can help drive the globe and thereby reduces emissions. It and development, repair, maintenance and
job creation. also enables local ideas and innovation during recycling. Policymakers everywhere need
Providers such as BlueTown, a Danish the design and construction processes. to support these businesses already leading
company offering communications solutions The end of a construction project is, the way by incentivizing the increased use
across developing countries, can pave the in many ways, a beginning. That is true of labour and the reduced use of planetary
way by connecting the unconnected through especially since all impacts are evaluated resources.
local masts, delivering wi-fi to off-grid com- and the local workers involved are equipped
munities. Clusters between off-grid energy with new skills, tools and know-how. Mass
firms, connectivity providers, mobile banking Design Group is good example of a busi- 1. A shop-owner lights up an M-Kopa solar lamp.
concerns and microcredit institutions can be ness developing synergies between Sustain- 2. Could home-based solar systems help speed up
a motor for sustainable job creation. able Development Goals (SDGs) and job the digitalization of Africa?
S
ince its creation 20 years ago eBay has
been a significant force in promoting
© Fabian Staechelin
countries is booming, online selling
on international e-commerce platforms
has yet to take off.
ENABLING ENTREPRENEURS
While local e-commerce is a big step forward
for the national economy, local businesses
have yet to take advantage of the benefits of
cross-border e-commerce. A meeting at the
Rwandan Ministry of Commerce involving
30 small businesses showed that they all
cared for reaching a larger customer base but
lacked the skills and knowledge to run an
online storefront and serve foreign markets.
A recent pilot project run in the Ger-
man town of Mönchengladbach can serve €2.5 million (US$ 2.8m) in additional sales. in a unique position to accelerate the trend
as a model for the public and private sectors Most importantly, the majority of them towards a more inclusive global trading
to join forces to help small businesses realise engaged in exports, reaching customers in system – creating trade impact for good.
cross-border trade opportunities. 79 countries.
Mönchengladbach’s private-sector devel- This model is applicable to developing Hanne Melin contributed to this article. This article
presents the views of the author and should not be
opment authority turned to eBay in early countries in one form or another. The craft attributed to eBay.
2015 for help on an e-commerce pilot aim- of selling online is very similar around the
ing to bring local businesses online. Within world. The added challenge in developing
a short period of time 77 brick-and-mortar countries is dealing with customs, getting * Of the US$ 83 billion worth of merchandise traded on
eBay in 2015, 75% came from business sellers.
stores were recruited, including a pharmacy, the merchandise shipped timely and collect-
** https://www.ebaymainstreet.com/sites/default/files/
a shoe shop and an electronics reseller. eBay’s ing payments from foreign customers.
eBay_Commerce-3-for-Development.pdf, page 9is
merchant development team assisted these It is crucial, therefore, that entrepre-
businesses with establishing an online pres- neurs get appropriate support. I am excited
ence and advised them on marketing their to see the International Trade Centre (ITC)
1. Online platforms such as eBay are opening up new
products to local as well as foreign custom- developing a programme to assist small opportunities for people to trade across borders more
ers. The results were encouraging: within businesses and entrepreneurs in exporting easily.
six months the participating businesses online. By joining forces with the right part- 2. E-commerce has helped Lyce finalize sales of US$ 6,700
sold a total of 65,000 articles generating€ ners from the private sector, ITC puts itself to customers in the US.
Q: How long have you been selling Q: What is your main export destination?
on eBay? A: United States, European Union, Russia.
A: 11 months.
Q: In your view, what are the biggest challenges when
Q: What type of goods do you sell? selling internationally?
A: Tribal Masks. A: PayPal doesn’t allow Rwanda based accounts to receive
payments.
Q: How many people do you employ?
A: One. Q: What are the key things that eBay should do to help you
sell internationally? Can eBay talk to PayPal to allow
Q: What is your sales volume so far?
Rwandans accounts to receive payments? How do you
A: US$ 6,700.
manage getting payments to Rwanda anyways?
Q: What platforms do you sell A: I have opened a PayPal account in Kenya. From there I can
on next to eBay? withdraw cash to Equity Bank (a Kenyan bank) and have it sent
A: None. to my Rwandan mobile money account. Transfer fees for this
are high. It would be much easier if I could withdraw money
Q: What % of your sales are international?
directly from PayPal in Rwanda.
A: 100%.
© SawaSawa
investment in Kenyan IT companies. series of projects funded by the Dutch Centre
‘When we got into e-commerce it really for the Promotion of Imports from developing
helped us grow our company,’ said Sarah countries (CBI). In Kenya, the project seeks to
Murugi, chief executive of Nairobi-based enhance the export competitiveness of Ken-
SawaSawa, which offers custom software yan information, technology and information
development and infrastructure. ‘We were technology enabled services companies. The E-commerce has also brought chal-
able to expand our clients’ geographical direct private-sector partner is Kenya Infor- lenges. These include protecting goods,
reach and our client base. With the interna- mation Technology & Outsourcing Society services and trademarks; sharing knowledge
tional digital tools of e-commerce, our busi- (KITOS), of which SawaSawa is a member. about how payments are made; reassuring
ness operations are all digitized and 90% are ITC also works with the Kenya ICT Authority clients about security; and proving expertise
automated.’ at government level. to foreign markets. Murugi says the key is
That means higher sales and income ITC is setting up an exporter directory to continually reinvent ways to overcome
because operational costs have dropped with an e-commerce function, which will e-commerce cross-trade barriers, such as
and the company has added customers in enhance the visibility of SawaSawa and forming favourable partnerships, improving
Europe, the Americas, Asia and Oceania. other participating companies. Potential cus- networking and brand-exposure strategies,
International business has grown well over tomers will find useful details online about and participating in dialogues that concern
60%, Murugi said, particularly for services Kenyan small and medium-sized enterprises SMEs and e-commerce trade.
that generate recurring revenue. (SMEs) and can ask for an electronic quo- ‘Once you open up your products and
‘When it comes to e-commerce, you tation. This platform will be hosted on the services, you face the challenge of proving
don’t have to be physically hired in an KITOS website. your expertise to foreign markets,’ she said.
office,’ she explained. ‘As long as you have Digitizing the e-commerce structure ‘Competition is stiff - you always have to be
a skill set you just have to make yourself has helped break down barriers confronting on top of your game, make sure your sys-
visible online, provide a proper platform to women entrepreneurs, Murugi said. tems are working flawlessly and that they’re
engage clients wherever they are and voila, ‘We operate in a patriarchal society easy to use. A great deal of work goes into
you create a job for yourself.’ where men are dominant and there are still maintaining an e-commerce business.’
stereotypes that women don’t understand
DIGITAL BOOM technology,’ she said. ‘Digitizing means cli-
SawaSawa’s domain-name registration activi- ents never have to know your gender. It’s
ties illustrate the importance of e-commerce. leveled the playing field and reduced patriar-
Initially, the company had registered about chy in business. We’re now able to operate
100 domain names, which translates into in areas where there is less discrimination 1. SawaSawa is one the 33 companies ITC work with in
customers. But once the digital boom took towards women.’ ‘Silicon Savannah’.
T
here is a clear understanding among The latest success story is in India, tested way to simultaneously boost growth
Africa’s more rapidly developing eco- which a short while ago was more or less in while strengthening the foundation for
nomic players that technology must the same stage that many African countries future success. Many countries are well on
be brought centre stage in order to continue are in today – on the cusp of major success. their way to making information and com-
the pace of progress. Wildly successful over the past 20 years, munications technologies (ICT) a core com-
Thriving start-up scenes in Kigali, Nai- India has grown its tech industry to a value ponent of their long-term growth strategies.
robi and Lagos are excellent examples of the worth more than US$ 80 billion, directly At the World Economic Forum Sum-
promise that entrepreneurship and techno- and indirectly employing more than 10 mil- mit on Africa, Rwanda showcased the major
logical development offer to both strengthen lion people. steps it has taken to make ICT a central ele-
the economy and serve the needs of their Channelling technological innovation ment of our future development. Below are
populations. to strengthen a wider economy is a tried and a few key factors that we have identified
© Shutterstock.com
In the future, farmers are likely to consult other devices than their
mobile phones when deciding on which seeds to sow and when
D
igitalization is fascinating. Just as This data might be collected by self- Should the tomato be deprived of water
we’ve been spellbound by our piloted multicopters, or other drones, a tiny bit longer so that it develops the
smartphones in recent years, watch- which examine the state of the field perfect flavour? Does Daisy the cow’s
ing funny videos and sharing pictures of according to empirical formulas and effec- temperature indicate that insemination
adorable cats, in the future young farmers tively provide specific cultivation tips for should wait until the afternoon? Can the
are likely to don digital glasses or consult individual plants to answer the important next purchase of feed pellets be put off
devices that will help them analyse their questions of the day. A bit more fertilizer until next week after the markets have
work and make decisions. here, some of the latest insecticide there? calmed down?
AUTOMATION
Agricultural ‘Siris’ are already beginning
to answer such queries – even if they are
still in the pilot phases. For example, there
is a six-legged robot named Prospero [1]
roaming test fields in the United States of
© Swissmacky / Shutterstock.com
America and planting individual kernels
of corn in exactly the right spot for the
plant to take root. And for several years
now, Bonirob [2] has been wandering the
fields of Germany unassisted, testing the
ground and picking weeds that threaten
the main crop.
You don’t have to be a clairvoy-
ant to recognize that agriculture is also
undergoing rampant digitalization. The
automation movement is as inevitable
as the tasting of the forbidden fruit. The may in fact make it possible to focus more
promises of technology are all too seduc- In agriculture, digitalization may in on the true heroes of the story: the plants
tive and the promises of greater efficiency fact make it possible to focus more and animals. There will be more time to
entirely too tempting. on the true heroes of the story: tackle new challenges and more time to
Still, just because we want something the plants and animals. advise other farmers in remote places who
doesn’t mean that it’s good for us. Diver- do not have easy access to education and
sification and variety trump everything, THE FARMER’S ROLE technology.
especially when it comes to agriculture and What will be left for farmers to do when Granted, the world doesn’t actually
food. Simplistic, cookie-cutter approaches agriculture is digitalized and automated? work this way. But wouldn’t it be fantastic
to solving problems usually reveal consider- Will they simply be reduced to servants of if it did? We now have the opportunity to
able weaknesses early on. Food production algorithms and machines that require just set the course and develop a model for what
is a highly complex endeavour: millions of a few remaining manual manoeuvres or digitalization should bring to agriculture –
organisms in a single litre of soil affect the will they take on a new role? I think farm- instead of waiting to see the toll it will take
development of the crops that grow in it. ers will primarily assume the role of tech- on agriculture and on us.
Likewise, thousands of compounds in the nically skilled researchers: new diseases
This article was first published on the World
plant affect the cow that eats it. We can- will emerge, organisms will migrate and
Economic Forum’s Agenda blog.
not package everything into a single correct unusual cases and technical problems will
formulas. But is that a reason not to devise arise. They may no longer have to steer the
any formulas at all? tractors themselves, but in the future they
It may be more important to ask what will still have to go out in the fields and into
new formulae should be established next the stable to check the system recommenda-
or whether digitalization should aim to tions, take care of specific tasks and improve
reduce costs in the short term or preserve systems interactively on an ongoing basis.
environmental resources in the long term.
Compared to the rest of the world, our COMPLEXITY
agricultural practices are very sustainable In the field of medicine, technical advances
– whether they carry the organic label or have still not supplanted doctors or nurses.
not. Our farmers are highly knowledgeable Instead, they have made it possible for doc-
1. Beyond mobile phones: a quadrocopter inspects a field
and competent. This is why we should get tors to deal with more complex diseases as and sends data back to its user.
involved now and decide which problems we begin to live longer and often require 2. Mobile phones have made it easier for farmers to access
should be tackled by future technologies. long-term care. In agriculture, digitalization information on when to plant and when to harvest crops.
© Laurena Arribat/ITC
Small and medium-sized businesses in developing countries are using
electronic solutions to leapfrog trade challenges and target customers
around the world with ITC help
T
o sell more goods online, sell them in ‘I donate my know-how to teach WHERE VIRTUAL
person. That’s what Syrian entrepreneur them how to do handwork so they can AND PHYSICAL MEET
Rania Kinge did to expand her online slowly get out of the shelters and live For small-business owners like Kinge,
market while offering handmade products rang- as normal Syrian citizens,’ Kinge says, opening a pop-up store is a low-cost, low-
ing from bracelets and bags to scarves to soaps adding that it’s important for her to commitment alternative to opening a brick-
at a pop-up store in Geneva earlier this year. give local women a chance at making and-mortar store. An added benefit is that
The goods were handcrafted by dis- a decent living in their own country. it can generate buzz about a company and
placed women in Damascus who received ‘Syria’s local economy is based on crafts. pique the interest of passers-by, making it
training from Kinge. Over time, she has I thought I would tap into this to reposi- more likely for them to purchase goods, visit
trained about 100 women. tion Syria on the international scene.’ the online store and tell others about the
© Laurena Arribat/ITC
© Laurena Arribat/ITC
enterprises (SMEs) – are better able to reach
their target customers, explains Mohamed
Es Fih, ITC e-solutions adviser.
‘We have technology to help these busi-
nesses get easier access to major online mar-
ketplaces, like eBay, Amazon, Etsy and other
markets,’ he says. ‘We do this by unlocking
barriers to the tripod of problems: visibility,
payments and logistics.’
During the one-day eComSouk event,
customers bought nearly US$ 10,000 worth
of Syrian products. As a result of the visibil- This is a major challenge for many a chance to promote their products directly
ity raised by the event, about double that SMEs, particularly those in developing to end consumers. She hopes the products
amount in business leads, including busi- countries, where high logistics costs, unpre- she sells can share a positive message about
ness-to-business meetings, followed. dictable delivery times and outdated legisla- Syria with the rest of the world.
The Syrian eComSouk was the sec- tion can make it almost impossible for them ‘Thanks to ITC, I am equipped with
ond event of its kind. The first, which fea- to sell goods in international markets. Often- more courage and hope that we can change
tured products from Morocco, resulted in times SME owners do not fully understand people in a nice way,’ Kinge says. ‘We have
physical sales of US$ 5,500 and an addi- trade logistics procedures and processes and to make projects that are adapted to people
tional US$ 10,000 in online sales after struggle to manage risks related to crossing and their skills.’
the event. borders.
To help, ITC is partnering with DHL,
LEAPFROGGING TRADE BARRIERS the global logistics company, to address chal-
While the eComSouk introduces customers lenges to logistics and customs regulations.
to goods produced by SMEs in developing The goal of the partnership is to equip SMEs,
countries, the lasting impact comes from trade institutions and government authorities
attracting customers to their websites. For with the knowledge and skills to improve 1. Entrepreneur Rania Kinge introduces customers to bags
example, Kinge’s business has generated their trade logistics performance so more handmade by displaced women in Damascus at a pop-up
store in Geneva, organized by ITC.
more than 12,000 likes on Facebook and businesses can participate in e-commerce.
2. Customers browse jewellery handcrafted by Syrian
testimonials from buyers from the region
women at a pop-up store in Geneva.
and around the world. CRAFTING POSITIVE CHANGES
3. Mohamed Es Fih, ITC e-solutions adviser, rings up
To keep and build on customers’ trust, As for Kinge, marketing her products at the a customer’s purchase using a mobile phone and credit
companies must ensure that once an online eComSouk in Geneva opened up her busi- card reader.
order is placed, the goods are delivered on ness to a new clientele, giving the displaced 4. Customers shop for goods at the first eComSouk
time and in good condition. women that she works with in Damascus organized by ITC, featuring Moroccan goods.
N
o matter what city you are in these PURCHASING POWER
days you will notice people with Research shows that men are primarily driven
their heads down, staring at their by technology, whereas women drive consump-
smartphones. One German municipality is tion, making over 80% of purchasing decisions.
installing warning lights in the pavement In Australia connected women navigate the
to keep distracted pedestrians from walk- digital landscape with confidence, outperform-
ing into oncoming trains. The safety haz- ing men on indicators such as media multitask-
ard aside, what is striking is how much ing, social connection, sharing of content and
© Leungchopan
time people spend on their phones. Digital number of hours spent on devices.
media and smartphones are everywhere, in According to the 2016 Sensis Social
every city, town and village across the globe. Media Report, 57% of Australians use social
Consumers are connected everywhere so media every day, spending 12.5 hours weekly
those institutions and businesses connecting online on average. The rise of consumer usage
with them are benefiting. Those that aren’t has influenced and encouraged the rise of businesswomen to global value chains, the
are left behind. SME businesses going online. The same report project team kept in touch with stakeholders
Organizations such as Women in states that 48% of small, 54% of medium- via social media as it is the preferred method
Global Business (WIGB), an Australian sized and 79% of large businesses in Australia of connection in Indonesia. As Indonesia is
government initiative, are intended to use social media to increase their client base one of the world’s most mobile-centric coun-
inspire and support women-led businesses and generate sales. This issignificant increase tries and is in the global top 10 of smartphone
with exporting goods, exploiting digi- on 2015 figures of 30% for small, 32% for ownership, it makes sense to communicate
tal technology and connecting with and medium-sized and 55% for large business. and connect with stakeholders and women-
engaging customers. WIGB programmes It is important for prospective exporters to led businesses via mobile apps rather than
are offered via digital technology plat- tailor their digital communication to the needs emails, which often go unanswered.
forms. For example, the programme was of each market. For example, whilst deliver- The digital economy has changed forever
one of the early adopters of social media ing the joint WIGB-International Trade Centre the way organizations do business and those
in government, which has resulted in a project to improve the access of Indonesian who have not adapted will be left behind.
large, loyal customer base that often only
connects through social media. Four tips to for better international online trade
In the same way, businesses seeking
to trade internationally can only do so 1. Make information visually appealing, using images, infographics and video for
effectively if they have a globally acces- maximum impact.
sible digital footprint. Digital communi- 2. Internationalize all communication while being culturally sensitive.
cation needs to be delivered in multiple Translate content into relevant languages, always checking the messaging with a native speaker before
languages, be culturally sensitive and be you go public.
open for business 24/7. Getting started 3. Post on social media regularly and keep content relevant and up
in international business has never been to date. Strive to keep a balance between broadcasting and engagement.
more accessible for business owners than 4. Appoint dedicated digital media resources and experts. Successfully
navigating the digital economy means investing in talented, experienced people.
it is today.
T
he World Trade Organization’s (WTO)
© Shutterstock.com
Trade facilitation without a ment regulations.
concomitant push to smooth the
way for increased investment will Improve the efficiency and effectiveness
not unlock economic growth in a of investment administration procedures.
sustained manner. This can be done through shortening and
simplifying licensing, registration and tax-
related procedures; establishing online
overwhelming majority related to investment one-stop approval authorities; and clarify-
incentives or special economic zones-type ing the roles and accountabilities between
benefits, while only 24% constituted concrete levels of government.
investment facilitation measures. This means
a range of inexpensive, potentially valuable Build constructive stakeholder relations.
policy fixes go unheeded while opaque legal This can be accomplished through estab-
or administrative requirements, cumbersome lishing and maintaining mechanisms for
operating environments and costly business regular consultations and dialogue with
requirements prevail. Rather than handing investment stakeholders through the life-
out incentives, eliminating such constraints cycle of investments; and mechanisms to Enhance international cooperation on
would be a far more compelling key to unlock engage interested parties in lawmaking investment promotion and facilitation
investment flows and create a business envi- and policy-review processes. for development through provisions in
ronment that keeps investors invested. IIAs. This can include advocating for high
Designate a lead agency or facilitator with
The same issue marks investment corporate governance standards and re-
a mandate to address investor complaints
policies at the international level. Concrete sponsible business conduct by outward
and suggestions; track and manage dis-
investment promotion and facilitation actions investors; encouraging home countries
putes; manage smooth information flow;
are either weak or absent in most of the exist- to provide outward investment support,
and liaise with relevant government insti-
ing 3,300 international investment agree- such as political risk coverage, investment
tutions on recurrent problems.
ments (IIAs). UNCTAD examined 1,200 IIAs insurance or facilitation services; and es-
Establish monitoring and review mecha- tablishing regular consultations between
and found that only 22% contain some sort of
nisms for investment facilitation, such as relevant authorities or formal collabora-
investment facilitation provisions. Even those
diagnostic tools and indicators on the ef- tion between outward investment agen-
agreements explicitly dealing with invest-
fectiveness of administrative procedures cies and IPAs.
ment facilitation issues command few, if any,
and measuring and benchmarking the
effective measures. Far more work than this As is clear from the above, the areas for
performance of institutions involved in
would be needed to win over wary investors. action are framed along two axes. The first
facilitating investment.
set of proposals can be deployed by coun-
THE ACTION MENU Enhance international cooperation for tries in their own interest. The second set of
UNCTAD crafted an Investment Facilitation investment facilitation. This can be done action lines is aimed to smooth the invest-
Action Menu *
that systematically signposts through consultation between relevant ment environment of developing country
policy options which can be adopted and authorities; collaboration on anti-corrup- partners and stimulate global collaboration
adapted by countries at the national and tion efforts in investment processes; and in the area of investment facilitation. In the
international level to create a better operating institutional expertise exchanges. absence of a formal governance mechanism
environment for investment. The overarch- Strengthen investment facilitation efforts for global investment, the spark to kindle
ing rationale is to unlock investment flows, in developing-country partners through formal collective collaboration is absent.
particularly in productive sectors, while con- technical assistance and support in a Still, organizations such as UNCTAD and the
tributing towards sustainable development. range of areas, including bolstering trans- World Bank work unceasingly in the area to
In brief, the action areas propose to: parent and effective administrative proce- develop expertise and collate best practice.
Promote accessibility and transparency dures; building capacity for preparation of The ultimate aim is to incrementally pave the
in the formulation of policies, regulations regulatory feasibility studies; and building way for greater international cooperation in
and procedures relevant to investors. actual institutional capacity, including an area sorely in need of such aid.
This can include a centralized registry of those of investment promotion agencies James Zhan is the lead author of World Investment
laws and regulations and a mechanism to (IPAs) and other relevant authorities. Report.
provide timely notice of changes in pro-
Enhance investment policy and promotion * Investment Facilitation: A Global Action Menu, UNCTAD
cedures, standards, technical regulations http://investmentpolicyhub.unctad.org/Blog/Index/53
in developing-country partners, including
and conformation requirements.
through policy reviews and the design of
Enhance predictability and consistency effective investment promotion strategies 1. Better trade facilitation needs investment to unlock
in the application of investment policies and building capacity to provide post-in- economic growth.
through, for instance, systematizing and vestment or aftercare services. 2. Paving the way for greater collaboration.
O
n any given day, rain or shine, greater yield on the land. About 90% of the ‘It’s about finding the right buyer with
Ruwan Hemage tends to his farm in pineapples are exported to the Middle East. the right price,’ Hemage says. ‘Some person
Loluwagoda, Sri Lanka, about 70 kil- As a farmer who sells fresh pineapples asks me to sell pineapples at 50 Sri Lankan
ometres outside the capital city of Colombo. – prices for which constantly fluctuate on rupees (US$ 0.34) per kilogram, but there is
Hemage, his wife and two hired workers the world market – Hemage must negoti- a possibility in the market to sell at 70 rupees
cultivate a variety of crops on the six-hectare ate the best deal for his produce. Sri Lan- (US$ 0.48). So find the person who buys at
farm including coconuts, bananas, papayas and kan producers of pineapples have received 70 rupees and keep the relationship in the
ginger. The main focus, however, is on pineap- anywhere from US$ 100 to US$ 503.3 per long term – that is the challenge.’
ples, which are intercropped with or grown ton since 1991, according to the Food and Higher-quality goods always fetch the
in close proximity to coconuts to produce a Agriculture Organization. best prices. Through the International Trade
us in more ways than one,’ he says. ‘It has standards.’ 2. Employees working on Ruwan Hemage’s six-hectare farm
use good agricultural practices, such as the minimal
trained our workers, it’s brought quality at a The project has also increased business
use of pesticides and fungicides, in cultivating crops.
holistic level, we’ve taken better care of our opportunities and communication between 3. Workers peel and cut mangoes before drying them at
staff, they’ve taken better care of the product, participants, says Ludovica Ghizzoni, ITC the Ellawala Horticulture farm, the first in the country
and that in turn gives a lot of confidence to our adviser on export quality management. to be GLOBALG.A.P.-certified.
Agenda
from 30 June 2016
For free download, please visit: This report is a starting point for public-private
DIRECTORY dialogue to address e-commerce bottlenecks,
www.intracen.org/publications especially for small firms in developing countries.
Such businesses face policy challenges in four
processes typical to all e-commerce: establishing
INVESTING IN TRADE PROMOTION 01
ITC PUBLICATIONS GENERATES REVENUE
online business, international e-payment,
international delivery and aftersales. To improve
Trade promotion pays both in export and GDP competitiveness, challenges must be met within
Resources on trade growth, according to this International Trade Centre the firm, in the business environment and by
governments. The report provides checklists
and export development (ITC) report. The way trade promotion agencies are
managed also changes their impact on a country’s for policy guidance as well as case studies
for exporters, trade support prosperity. For every dollar of export promotion from e-commerce entrepreneurs in developing
countries.
invested in a national trade promotion organization
institutions and policymakers (TPO) there are US$ 87 of exports and US$ 384 of http://www.intracen.org/publication/Bringing-SMEs-onto-
additional GDP per capita generated on average, the-e-Commerce-Highway/
according to the report. TPO choices on goals,
clients, sectors and activities affect their impact,
it says.
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