Bangladesh has laid an essential foundation for a technology-driven and skill-based digital economy, says a United Nations Conference on Trade and Development (Unctad) report.
The report says that Bangladesh stands to capitalize on improvements made by the country to bolster e-commerce-friendly infrastructure.
The report, presented to the government representatives during an event on the opening day of Unctad’s e-Commerce Week 2019, held in Geneva, Switzerland on Monday (Apr 1), highlights the country’s readiness to conduct electronic trade.
The UN’s Rapid e-Trade Readiness Assessment found that although Bangladesh has laid an essential foundation for a technology-driven and skill-based digital economy it still needs to introduce a comprehensive national e-commerce strategy and improve delivery logistics.
While receiving the assessment, Post, Telecommunication and Information Technology Minister Mustafa Jabbar, said, “All commercial activities are going to be digital, and all current business laws, regulations, and policies are to be made compatible with the digital commerce revolution.”
The assessment, completed by Unctad at the request of Bangladesh government, pinpoints crucial improvements that will help the nation deliver on its e-commerce goals, which include: advances in telecommunications infrastructure, trade logistics, payment solutions, laws and regulations, skills development and financing that can accelerate e-commerce and spread its benefits throughout the economy.
Shamika N Sirimanne, Director of Unctad’s Division on Technology and Logistics, said this e-Trade Readiness Assessment recognizes growth and employment gains yet to be "made by a comprehensive pivot to e-commerce."
Digital gains and shortcomings
The report found the Bangladeshi government supported public-private dialogue and collaboration in digitalization matters “in an exemplary manner”, as a part of its "Digital Bangladesh" initiative—supported by Access to Information (a2i) to realize the country’s Vision 2021 National Development Plan.
Currently led by the Information and Communication Technology (ICT) Division the a2i has accelerated growth in the ICT sector and the overall digital economic ecosystem of the country.
The Digital Bangladesh initiative not only looks to transform the country into a modern, knowledge-based society by 2021, but also establish the South Asian nation as the world’s next ICT destination.
"Since its inception in 2010, the ICT sector in Bangladesh has grown at an average pace of 40% a year—a remarkable achievement," the report says.
It explains that the techology sector is also "a fit for the 110 million young Bangladeshis who, in a nation of 160 million", need jobs and skills for the future.
With 65 percent of Bangladesh’s people living in rural areas, connectivity also remains a priority.
The report says that support for e-commerce in a comprehensive national strategy would help increase the public’s confidence in e-commerce, and address the digital divide between urban and rural areas. To do so, it would need to recognize all barriers to business from “an ecosystem perspective”.
"Improvements in trade logistics, such as better postal services and secure payment modes, are also required," it says.
Ready for e-commerce
Since the launch of the Rapid e-Trade Readiness program in 2016, UNCTAD has undertaken 17 assessments of developing countries—Afghanistan, Bangladesh, Bhutan, Burkina Faso, Cambodia, Lao People’s Democratic Republic, Liberia, Madagascar, Myanmar, Nepal, Samoa, Senegal, Solomon Islands, Togo, Uganda, Vanuatu, and Zambia.
Both Bangladesh and Afghanistan were formally presented with their Rapid e-Trade Readiness Assessments at the fifth edition of eCommerce Week.
The event’s theme aligns the real issues discussed in the assessments and tackling the challenges and opportunities countries experience as they embrace digitalization and prioritize development gains.
With the support of key donors—Germany, the Enhanced Integrated Frameworks, and the International Islamic Trade Finance Corporation—eight additional developing countries will conduct e-Trade readiness assessments in 2019.
The e-Trade for all initiative is a multi-stakeholder partnership that helps developing countries find information and resources on e-commerce and the digital economy and supports the preparation of the assessments.