Internet Based Commerce - Nepal's Perspective
Gaurab Raj Upadhaya
<gaurab@lahai.com>
Worldwide, the "dot com" boom created many millionaires, and the ones who choose the e-com amongst the "dot coms" become billionaires. The technology of the Internet, combined with the advanced e-payment mechanism, has created an altogether new field of electronic commerce. Developed countries, including the USA, and EU along with Japan are in the forefront of the use and deployment of the new mode of business. But, what about us.
For the developing world e-commerce has the potential in an altogether different area, then what have been successful in the developed countries. Experts express the belief, that the e-commerce development in developing countries would be lead by the Business to Government (B2G) model. Infrastructure constraints, legal issues, e-payment problems all point towards the fact that unless the government is an active participant in the scene, the development cannot move ahead. The B2G model is expected to enhance the concept of e-governance, and in turn bring in transparency in government procedures. But others are skeptic, on whether the conventional government bureaucrats would readily accept the openness.
In Nepal case, the pending cyber law and the much awaited IT bill promises to bring in legal mechanism for e-commerce. This would probably aid in the B2B arena, but for B2C to take off in Nepal, fundamental changes are required in the foreign exchange regulations, and payment gateways needs to be set up. To copy the growth in the Internet sector, mostly the result of the liberalisation in the telecom arena, something similar is needed.
The government would have to give up a lot of control on how businesses operate. E-payments and e-delivery of materials means that government would have to completely trust the businesses. Lack of customs receipts and letter of credits would have to be accepted. The result would also aid the development of the overseas software market. As things stand now, people working with foreign partners in software, are not able to show their legitimate source of income from exports of software. The result is business houses deposit the money in foreign banks, costing the country valuable foreign currency.
As we move into the 21st century, the question still persists, are we ready for the new technology? Many discussion have taken place. But, discussion are not enough. Concrete mechanism to develop this sector is needed. More necessary is change in traditional thinking of how business works. In what has been billed as the new economy, new thought is required. Taken as an example, software business is now a proven growth record world-wide - but in Nepal it has failed to take off, and similar fate can be seen for e-commerce, if change does not come, both in the government level and in private sector.
Nepal's IT business has been led by those companies, who were brave and dared to venture into the unknown a decade back. Most of the known companies dealing in computer spares and parts, are new entrants in Nepali market. This is one sector which, in-spite of the boom world-wide, - has failed to attract local business conglomerates. It seems, big business houses, whose primary domain is industrial manufacturing, are afraid of the knowledge based industry. They still seem too reluctant to accept that the programmer is a asset to a software company, and not a liability. The high calibre of developers, and increased local demand make the traditional companies, who have so far got by without investing much in human resource development, weary. Software business and by extension e-commerce are too virtual for these houses to absorb quickly. Without change in this primary perceptions of the business houses, e-commerce will fail to take off.
For Nepal, the National Planning commission has time and again committed towards formulation of the policies, and the bill is expected to be tabled in the parliament soon. But the major question remains is that of implementation. The government machinery has been reciting "by overcoming the hurdles we face as a landlocked mountainous country, e-commerce can also help us to promote trade in goods and services within and outside Nepal, " but it has not been able to go beyond lip service and do things it promises. Yet, without active government support – not much can be accomplished.