Module 1: Introduction to Internet Use for Business Development

Broad Policy Issues that Governments Should Consider to Promote the Use of and Access to the Internet for Business Development in General, and for SMEs in Particular

I. Introduction

The Internet has revolutionized, and continues to profoundly affect, the way one does business. It is now a critical (if not the main) tool and venue for conducting commerce. As a tool, it allows buyers and sellers nearly unlimited access to information, goods and services. As a venue, it does away with the limits of geography, the time zones and, in some cases, the need for a physical office. With its tremendous potential, it has become commonplace for businesses and consumers to utilize the Internet for a variety of transactions ranging from emails to actual online purchases.

From a policy point of view, it may seem best to let the Internet and the conduct of its users be left to develop and evolve on its own. In many respects, it is best to rely and trust in the market to lead in the development of the information and communications technology (ICT) sector in general and e-commerce in particular.

Leaving everything to the market, however, is likely to lead to failure. Markets can overlook the needs of remote and unprofitable areas that would otherwise benefit greatly from access to the Internet. Moreover, sound government policies can create the necessary environment and incentives to encourage small and medium-sized enterprises (SMEs) to take advantage of the Internet to create business opportunities.

Further, the huge potential for e-business has attracted unscrupulous individuals who wish to exploit the Internet for their own selfish interests. This type of conduct makes users vulnerable to a host of possible attacks that compromise the confidentiality, integrity and availability of information that they exchange through the Internet. As a result of such illicit activities, people tend to lose trust on the security of doing business in the Internet and thus, forego its huge potential for business, among other socially desirable uses. It is therefore necessary that security measures be set in place to thwart would be attackers who make Internet use unsafe and insecure. Along this line, it becomes of paramount import to establish mechanisms about the standards, policies, rules, and enforcement and dispute resolution procedures to apply to global inter-networking activities in order to make the Internet free, fair, reliable, transparent, and accessible to all.

Simply put, e-commerce can never prosper unless a secured environment for doing business exists. But this can only happen if the correct policies for securing the Internet are put in place.

This set of training modules is designed to serve as a policymaking reference on Internet Use for Business Development,principally for middle- to senior-level Internet policymakers and implementers of public policy issues of Internet governance. More particularly, it is intended as an introductory guide to various issues and legislative/policy options that developing countries should consider as they put into place the policies and rules that will encourage SMEs¹ to take advantage of the Internet to create business opportunities.

The first module provides a comprehensive introduction to the development of the Internet as it relates particularly to SMEs. It outlines the relevance of ICTs to SMEs in terms of opportunities and barriers thereto, and identifies specific policy steps and issues that ought to be considered by countries – particularly developing nations – as they strive to develop legal and regulatory frameworks that will facilitate and encourage access to and use of ICT by SMEs.

The second module deals with key legal and policy topics relating to e-commerce, and the issues that need to be considered to encourage SMEs to engage in e-commerce.

The final two modules focus on other issues that need to be considered in order to truly establish an enabling environment for Internet Use for Business Development. Particular focus is given to cyber crime and security in the third module. Overviews of other critical issues, including consumer protection, intellectual property rights, data protection and privacy, as well as the need for international cooperation and harmonization, are provided in the final chapter.

The materials included here, as well as the issues contained herein, are not exhaustive. This is merely an introduction, and it is hoped, nonetheless, that they convey a sense of need – and realistic possibility – for a holistic approach to policymaking in this area.

This document does not purport to provide ready answers. Rather, it is intended to pose questions and issues for the reader in the hope that these will provoke thoughtful reflections. It should be noted that there is no one set of policies or rules that will apply to each and every jurisdiction. Therefore, it is hoped that this document will be a useful reference on ICTs for all stakeholders, not in the sense of a map or encyclopaedia that provides easy answers, but rather as a useful tool for readers to think through the issues, learn about best practices and models, and then, ultimately, reach conclusions on their own.