A future global ODR systemA future global ODR system A developing country perspective

Mrs. Cécile Barayre(cecile.barayre@unctad.org)

ICT Analysis Section Science, Technology and ICT Branch

UNCTAD

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Presentation outline

• Trends in worldwide ICT uptake • Trends in e-commerce development in

developing countries (DCs)• Legal infrastructure supporting e-commerce in

DCs: the role of UNCTAD• Challenges for ODR in DCs : the case of

cyberlegislation.org in India• Policy implications to promote ODR

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Trends in worldwide ICT development

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Global ICT developments 1997-2008

Source: ITU

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Technologies trends in DCs Mobile phones spreading, new applications emerging

• Mobile has become the most preferred ICT tool: o affordable, low operating costs and power

requirements/responds to an essential need of communication not supplied by landlines

• Continued growth in emerging economieso India: almost 100 million new subscriptions (Jan-July/09)

• New mobile applications emerging (e.g. m-banking, m-commerce)

• Strong interest in expanding mobile broadband

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Mobile growth continuesWorldwide subscriptions up to 4.6 billion in 2009

Source: Information Economy Report 2009, UNCTAD (UNCTAD based on ITU and national data )

Mobile subscriptions per 100 inhabitants, 2003-2008, by country Mobile subscriptions per 100 inhabitants, 2003-2008, by country groupgroup

Internet users keep expandingNow 1.4 billion users; highest growth in the South

Internet users per 100 inhabitants, 2003-2008, by country groupInternet users per 100 inhabitants, 2003-2008, by country group

15% growth Worldwide in 2008

25% growth for developing countries

China has largest number of internet users (298 millions)

Source: Information Economy Report 2009, UNCTAD (UNCTAD based on ITU and national data )

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Widening divide in broadband connectivityNow 400 million fixed broadband subscribers

Broadband subscriptions per 100 inhabitants, 2003-2008, by country groupBroadband subscriptions per 100 inhabitants, 2003-2008, by country group

8 times higher penetration in developed than in developing economies…

… >200 times higher than in LDCs

Source: Information Economy Report 2009, UNCTAD (UNCTAD based on ITU and national data )

Trends in e-commerce in DCs

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Trends in e-commerce in DCsTowards m-commerce

• No data on the volume of e-commerce in DCs but a large share is B2B

• Mobile-based services: M-banking, M-commerce: o Cellbaazar, M-pesa, etc.

• E-government developing in many DCs, so are legal frameworks

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Obstacles to e-commerce&m-commerce in DCs

o Literacy; not so much an issue for m-commerceo Lack of supporting policies;o Availability, speed and cost of Internet access, low

computer penetration, lack of relevant mobile applications;

o Lack of payment and delivery facilities; o Lack of e-commerce culture o Lack of content in local languages.o Lack of trust, of legal framework, o Lack of knowledge on ODR procedures

Legal infrastructure supporting e-commerce in DCs

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Role of UNCTADBuilding legal frameworks

• UNCTAD’s Program on ICT and Law Reform – Builds capacity of policy makers and legal practioners: distance learning and face-to-face training course on the Legal issues of e-commerce – Prepares comparative studies on regional harmonization of cyberlaws (Latin America, Central America)– Drafts and reviews cyberlaws

• Active in 26 DCs: Latin and Central America, East African Community and Cambodia and Lao PDR

• UNCTAD works in cooperation with UNCITRAL and regional institutions.

Challenges for ODR in DCs

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ODR in developing countriesHas not really taken off

• Very few ODR providers in DCs, even less using SMS based mobile phone interactions

• Pioneers : China, Peru, India and Singapore• Challenges include: o adapt to new mobile platforms rather than computers; o develop relevant ODR applications and content in local

language; o create awareness and change culture.

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ODR in IndiaCyberarbitration.com

• Front runner in the implementation of ODR• Very few ODR providers• Cyberarbitration.com targets B2B but also B2C,

C2C, B2G and G2C; number issues arising pertaining to Intellectual Property Rights and their violations

• A limited increase in the number of cases since the beginning of arbitration

• An increase in the number of cases expected with the mobile Internet and mobile revolution

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ODR in IndiaCyberarbitration.com

• Challenges include: o slow adoption of computers and the online

environmento superficial penetration of computerso “Feel and touch” cultureo Lack of awareness about ODR mechanisms

among the relevant stakeholders

Policy implications

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Policy Implications

• Educate and create awareness among merchants and consumers regarding the impact and increasing importance of ADR/ODR in resolving commercial disputes

• Ensure that national legislation recognizes the validity and enforceability of electronic transactions and facilitates the use of out-of-court dispute settlement schemes.

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Policy Implications

• Consider mobile devices platforms• Enhance cooperation and exchange with other

service providers• Promote voluntary adherence by e-businesses

to trustmark and reliability programmes • Give sufficient attention to cultural and linguistic

differences in providing ODR services

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The Information Economy Report 2009 Study on Prospects for cyberlaws harmonisation

in Latin America

Thank You!

Can be downloaded free of charge

on www.unctad.org