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This annual report examines how the internet is transforming the global landscape and the impact it is having on the digital economy of developing countries. It identifies policy and business options available to these countries and makes practical proposals for maximizing the contribution of e-commerce to economic and social development.
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Note Symbols of United Nations documents are composed of capital letters with figures. Mention of such a symbol indicates a reference to a United Nations document. The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. Material in this publication may be freely quoted or reprinted, but full acknowledgement is requested, together with a reference to the document number. A copy of the publication containing the quotation or reprint should be sent to the UNCTAD secretariat at: Palais des Nations, CH-1211, Geneva 10, Switzerland. The English version of the full report and the English, French and Spanish versions of its Overview section are currently available on the Internet at the address indicated below. Versions in other languages will be posted as they become available. http://www.unctad.org/ecommerce/ UNCTAD/SDTE/ECB/2003/1 UNITED NATIONS PUBLICATION Sales No. E.03.II.D.30 ISBN 92-1-112602-9 Copyright © 2003, United Nations All rights reserved Foreword Few manifestations of the power of human creativity have so extensively and so quickly transformed society as the rise of the Internet and other information and communication technologies (ICT) over the past decade. Dramatic as the changes may be, the process of assimilating and learning from them has only just begun. ICT can improve education, health, governance and trade. They are dramatically changing social and economic relationships and interactions, giving people, businesses and governments the tools with which to devise more productive, more inclusive and more development-friendly societies and economies. For the moment, however, we are still grappling with the painful reality that those who stand to benefit most from the advances of the ICT revolution are also those who have the least access to the technology behind it. The United Nations is strongly committed to doing its part to enhance the ability of developing countries to realize the full potential of ICT in stimulating and supporting development. We are working with Governments and partners in industry, civil society and academia to bring ICT applications to education, health, natural disaster management and many other key realms of human endeavour and wellbeing. E-commerce and e-business are among the most promising of those applications, capable of offering new ways to participate in global markets, new possibilities for diversifying national economies, and new and better jobs for young people. This third edition of the E-Commerce and Development Report, published by the United Nations Conference on Trade and Development, identifies some of the implications that the growth of the digital economy may have for developing countries. It aims to provide practitioners and policy makers with a better understanding of the options available to them in leading sectors of developing-country economies. It is also meant to contribute to the debates at the World Summit on the Information Society and efforts to create a truly inclusive information society that serves and empowers all people. Above all, if it helps developing countries to adopt and take advantage of new digital technologies, this report will have served its pur