The United Nations Conference on Trade and Development (UNCTAD) warns that most countries are ill-prepared for the digital economy. Consumer protection and data privacy are a priority for the UN agency.
According to the Geneva-based institution, the rapid digitization of the global economy raises serious and pressing questions. Government, business and other representatives from around the world will attempt to answer these questions at UNCTAD's E-Commerce Week, held at the Palais des Nations from April 16 to 20, 2018.
In particular, UNCTAD notes that between 2012 and 2017, the number of monthly Facebook users rose from 1 billion to 2.2 billion - with the fastest growth recorded in developing countries.
"The current debate on Facebook and data protection clearly shows that most countries are ill-prepared for the digital economy," stressed UNCTAD Secretary-General Mukhisa Kituyi.
Yet almost 90% of new Internet users over the past 5 years are in developing countries. "But half of these countries currently have no legislation to protect their privacy," said Kituyi.
For the UN agency, E-Commerce Week therefore comes at an opportune time as the digital economy rapidly evolves. "We know that the digital economy can bring great benefits to developing countries, but we need to resolve some crucial issues to ensure that digitization leads to the future we want to build".
The largest market in the United States
On a global scale, despite disparities appearing in developing countries, e-commerce growth remains strong. According to the latest UNCTAD estimates, e-commerce accounted for almost $26 billion worldwide,in 2016. The United States remained by far the largest market, with online sales of around $7.6 billion, with Japan slightly behind in second place.
However, China is the leader for business-to-consumer (B2C) trade. China and the USA accounted for just over half of all B2C sales in 2016. That same year, India entered the top 10 e-commerce markets for the first time. B2C sales grew by 14.5% in 2016 to reach $2.8 billion. There were an estimated 1.4 billion online shoppers worldwide in 2016 (up 11% on 2015), equivalent to 55% of all Internet users.
The theme of this year's E-Commerce Week is 'Digital Platforms and their Developmental Benefits' - key elements in the rapidly changing digital world. Key issues to be discussed include the development implications of using digital platforms in terms of data privacy, competition, job creation and profit sharing.
It will also be an opportunity to look at online consumer protection, trade logistics in the digital age, digital identities, blockchain technologies, digital platforms and competition policy, trade policy and e-commerce, e-commerce development in Africa and South Asia, digital trade and industrialization, and the role of regional banks in promoting e-commerce gains.