The socio-economic implications of the development of the Internet and e-commerce in SA are vast, especially when taking into account the increasingly widening digital divide prevalent in developing countries.
The onus is on all sectors of the industry to formulate new policies and regulations which will benefit all the stakeholders of the new economy, and not just business or the state. This was the focus of a panel discussion at ICT 2000, the Vodacom LINK Centre inaugural conference.
Philip Esselaar, of consulting firm Esselaar and Associates, argued that one of the primary inhibitors of development in the e-commerce arena was the hype that consistently shrouds the facts.
"There`s a huge amount of propaganda out there - the usual FUD tactics are prevalent. Part of the reason is that there is an unpredictable demand [for technologies], which has the consequence of a lot of businesses resorting to the kite-flying business - where a pilot product is issued, and a lot of CEOs are left to nervously gauge the market`s response.
"There is also the concern that people are rejecting technology - older people, for example, don`t feel the need to keep up."
Esselaar`s view is that most businesses will become a hybrid of classic brick-and-mortar and pure play dot-coms, while all markets will increase in volatility and complexity.
A key issue will be the gradual disappearance of legacy jobs and the emergence of new types of employment relating to the e-commerce industry, says Charley Lewis, head of the IT unit of the Congress of South Africa Trade Unions (Cosatu).
Lewis believes it`s important that members of organisations such as labour and trade unions are seen as stakeholders and key players in the digital revolution, since their jobs will be directly affected by e-commerce.
Tana Pistorius, an associate professor of law in the department of Mercantile Law at Unisa, highlighted the legal implications of e-commerce, as they extend to the validity of e-contracts and the extent to which rights of attribution will be recognised. South African intellectual property laws also need to be updated, she said.
Pistorius believes the upcoming Draft Green Paper on e-commerce is possibly one of the most important advancements in South African law. But, she cautioned: "Whatever type of legislation is enacted, it should be technology-neutral."
Dr Bob Day, executive director of ICT at Unisa, believes the e-commerce environment will suffer greatly from extensive regulation. "This isn`t something that one group can control. If you exclude anyone, the environment won`t grow. But the more groups that are involved, the faster it will grow. Old regulation processes don`t work - new ones must include all the groups in SA."
Day also believes there is a gap in understanding in the development sector as to how e-commerce can empower even the most impoverished members of that sector. Day said e-commerce is an elite game at the moment, and that while government needs to address this, if it tries to control the environment, it will destroy the very thing it is trying to create.
Lewis, on the other hand, believes: "Not regulating e-commerce is like asking the poacher to watch over things in the game park." However, Lewis said, it`s essential that regulatory bodies comprise representatives of the business, labour, consumer, environmental and private sectors - not just government.
Mike Lamb, director of the Commerce Centre of South Africa, urged government to adopt the approach taken by the Malaysian government. "People in government, businesses and citizens are working together to develop their government services. They`re in effect remodelling their government through connectivity."
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