E-commerce, WTO and Developing Countries
(World Economy 23, No. 8, August 2000, 959-978) Electronic commerce offers unprecedented opportunities to both developing and developed countries. In the short run, the gains are likely to be concentrated in developed countries but, in the long run, developing countries have more to benefit. This is because, in the short run, developing countries lack the infrastructure necessary to take full advantage of Internet. But in the long run, they can leap frog, skipping some of the stages in the development of information technology through which developed countries have had to pass. developing countries such as India that have the capacity to export skilled services through Internet should aggressively negotiate market access with developed countries in the future WTO negotiations. This involves negotiations on two fronts. One, they should seek liberalization by developed countries in sectors in which they have comparative advantage. And two, they should seek recognition of their education, qualifications, requirements met, or licenses or certificates granted in the markets of other countries.