While electronic commerce holds tremendous potential for The Bahamas, the challenge lies in ensuring that it contributes to the total economic development of the country, said Bahamas Agricultural & Industrial Corporation Chairman Sydney Stubbs.
“Attention must be paid to address the opportunities and create an enabling environment in order to avoid the deepening of inequalities in the access and use of information technologies that could widen the social and economic gap between the have and the have not in our county,” he said.
The Member of Parliament for Holy Cross was contributing to the House of Assembly debate on the package of legislation designed to facilitate e-commerce, which is projected to serve as the “third pillar” of the Bahamian economy.
During Wednesday’s session, Mr. Stubbs said that in a few short years, e-commerce will be one of the principal avenues for conducting business throughout The Bahamas.
Mr. Stubbs also noted that e-commerce will become the principal avenue for conducting trade in 2005 when the Free Trade Area of the Americas is concluded.
“It is interesting to note that global electronic commerce stands at an estimated US $100 billion and is projected to grow to about US$ 2-3 trillion by 2005. During the same period, the number of Internet users in The Bahamas and worldwide, is forecasted to jump from 171 million to 345 million,” he said.
Mr. Stubbs further explained that e-commerce will enable us to surmount the comparative disadvantages which we see in many of the less developed Family Islands, making it possible for individuals on these islands to access markets in New Providence and America.
However, Mr. Stubbs said that the most immediate gain from e-commerce in the Bahamian economy would be in business-to-business electronic commerce, especially in the banking and financial services sector.
“Throughout The Bahamas, companies should enjoy higher growth and improved economic efficiency and profitability, while Bahamian consumers will benefit from broader product choice and lower prices,” he said.
According to Mr. Stubbs, the resulting productivity gains from e-commerce should propel the Bahamian economy to a higher standard of living for its people, as well as further generate new opportunities for the well-being and development of the country.
“It is safe to say, that electronic commerce will make an important contribution to future sustainable growth in The Bahamas,” said Mr. Stubbs, who added that parliamentarians should keep in mind that there are some major hurdles to overcome, in order to take advantages of the economic and social benefits offered by e-commerce.
“With respect to infrastructure, the growth of e-commerce in The Bahamas is slowed by barriers in the form of low quality telecommunications infrastructure,” Mr. Stubbs advised. He also questioned whether the minister responsible for The Bahamas Telecommunications Company was aware that the cellular system in its present form cannot facilitate electronic commerce and also inquired whether the existing system can support the evolution to third generation platforms.
The Holy Cross MP also informed the House that the e-commerce bill, when passed, would create the legal, commercial and financial frameworks to deal with physical transaction and may effectively protect intellectual property rights to support the growth of electronic transactions.
He did state however, that the medium does not initially create the trust characteristic in “face to face” transaction.
According to Mr. Stubbs, uncertainty currently exists among consumers, who may not be afforded similar protections in the on-line world as they would in the physical world, regarding privacy, security, authentication and consumer protection.
Meanwhile, Mr. Stubbs said that e-commerce is inherently global and transcends borders. He noted that its activities and policies would be most effective, if they are compatible with a global approach.
“International cooperation is necessary to avoid having national approaches fragment regional and global markets and unduly restrict trade. Governments, business, consumers and Academia must work together to create an environment in which e-commerce can grow to maximise the social and economic benefit for all,” said Mr. Stubbs.
By Tamara McKenzie, The Nassau Guardian
