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The Economic and Social Impact of Electronic Commerce 27 giving Malaysia more opportunities from within the country and not just from foreign nations. The significance of PC growth, in relation to electronic commerce, is that Malaysian citizens will also have access to the global markets to be able to buy products and services at a much cheaper cost. So, electronic commerce is more than just Malaysia’s ability to supply global, potential buyers with products; it is an overall impact on Malaysia’s economy, thanks to the various implementations of electronic commerce (Cordelia, 1999). In conclusion, Malaysia has benefited from implementing electronic commerce into their society but they must aspire to improving much more. “It is about transforming our current economy, which is dependent on commodities and contract manufacturing, into a different economy that uses Information and Communications Technology (ICT) to improve manufacturing processes, reduce manpower needs, lower costs of production, find better and more profitable uses for commodities and eventually improve the quality of life of Malaysians.” (Sivapalan, 2001) Africa An example how the electronic commerce has provided a lot of different benefits for a developing country like Africa. “The African continent has the least developed telecommunication network in the world” (Coeur, 1997). One of those benefits is for consumers. Because of the size of Africa, electronic commerce provides most of its citizens with availability to countless products from the Internet. Without the Internet, many of Africa’s citizens would have a very hard time finding things that are not available in their small town stores. Even if they were to find the items that they were looking for, they would have to travel very long distances to get them. The Prime Minister of Mozambique, H.E. Mr. Pascoal Mocumbi, inaugurated the first telemedicine link of Mozambique in 1999. It is one of the firsts in Africa. The central hospitals of Beira and Maputo are able to making use of standard lowcost teleradiology equipment which provides support for the exchange and visualization of images including radiographs as well as for transmitting laboratory results or for communication (verbal or written messages). This example shows how telemedicine can help overcome some of the serious shortages in health care services in developing countries (Androuchko, 1998). Nicaragua Some electronic stores sell handcrafted goods from developing countries, buyers get beautiful, unique, hand-crafted goods, and their purchase preserves native arts, lets villagers stay at home rather than migrating to city factories, and Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
28 Vinaja reduces poverty. Money from selling their wares has given villagers the means to build new houses and workshops (Richman, 1999). Mexico For Mexico and other Latin American countries, tourism is of great economical impact; therefore, a large number of web sites are dedicated to support, promote national and international tourism. For any developing country electronic commerce is a great way to enter into foreign markets and compete in the rapidly growing global economy. In the case of Mexico, the recent implementation of NAFTA has led them to acquire some of the technological advancements from the U.S. and Canada. This includes electronic commerce applications. According to John F. Smith, the Chief Executive Officer and President of General Motors Corporation, global communication links also make transportation faster and less expensive than anybody would have imagined just a few years ago, which makes it much simpler to conduct business. The benefits that electronic commerce brings to Mexico are much the same as those in other countries, but since Mexico is a developing country, it provides them even greater benefits. Electronic commerce reduces inventory and overhead. In addition, distributors are able to customize the products and services to better fit the needs of consumers, suppliers, and employees. Mexican consumers are also enjoying access to services and products manufactured in foreign countries that were not accessible to them before. Many Mexican nationals are now earning college credits from foreign universities who offer on-line courses while at the comfort of their homes. Countries like Mexico are coming along quickly and taking advantage of the benefits of electronic commerce. Sri Lanka Electronic commerce has opened many doors for the society in Sri Lanka; one of the most important is an increase of their productivity and competitiveness in international trade. Sri Lanka’s economy is based on exports of tea, textiles, agricultural produce, graphite and manufacturing goods. At the beginning of 1997 and 1998, when Sri Lanka started to develop IT, “the electronic commerce trend was about scoring hits at websites and selling products at very low prices, not taking into consideration that selling at a loss doesn’t translate into profits” (Sri Lanka Telecom, 2001a). Also to develop a better communication within the supply chain, Sri Lanka formed a National EDI Committee in 1995 to provide network services so businesses can improve computer-to-computer direct transfer of standard business documents. A great example of this technology innovation is the Commercial Bank. The strategy of this bank is to expand their retail presence by offering ATMs and anywhere, anytime banking”. The major benefit from this initiative is that Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
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About the Authors 259 Eric Cloete B
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