E-commerce will continue to power growth: Unctad

Our eFE Bureau in New Delhi

Despite the dotcom bust and subsequent infotech slowdown, e-commerce will continue to power the economic growth in the world, predicts a report of the United Nations Conference on Trade and Development (UNCTAD).

Moreover, the UNCTAD report has also warned the developing countries about the negative consequences if they further fall technologically behind the industrialised world.

The report said, “The new economic paradigm, according to which new information and communication technologies (ICT) would deliver ever-higher rates of inflation free growth, seemed to be among the first victims of dotcom crash. But even after crash, e-commerce has continued to grow.”

“While the Nasdaq crash and collapse of Internet start ups have exposed some myths about the new economy, they are not relevant as far as long term effect of ICT on the economy is concerned,” it said.

Citing the reason behind its prediction, UNCTAD report said that the ICT sector will continue to support rapid productivity growth because the cost of computing power is expected to keep falling steeply for several years. Moreover, most enterprises are yet to re-organise themselves to take full advantage of Internet, it said.

The e-commerce and Development Report 2001 of UNCTAD reviewed trends and discussed the impact of e-commerce on the global economy and sectors like tourism and finance. The report, according to a press note issued by UNCTAD, considers legal and regulatory issues arising from the advent of the electronic age and guides developing countries in putting the digital revolution to work for them.