A future global ODR system A future global ODR system A developing country perspective Mrs. Cécile Barayre ICT Analysis Section Science, Technology and ICT Branch UNCTAD

2 Presentation outline Trends in worldwide ICT uptake Trends in e-commerce development in developing countries (DCs) Legal infrastructure supporting e-commerce in DCs: the role of UNCTAD Challenges for ODR in DCs : the case of cyberlegislation.org in India Policy implications to promote ODR

3 Trends in worldwide ICT development

4 Global ICT developments Source: ITU

5 Technologies trends in DCs Mobile phones spreading, new applications emerging Mobile has become the most preferred ICT tool: o affordable, low operating costs and power requirements/responds to an essential need of communication not supplied by landlines Continued growth in emerging economies o India: almost 100 million new subscriptions (Jan-July/09) New mobile applications emerging (e.g. m-banking, m-commerce) Strong interest in expanding mobile broadband

6 Mobile growth continues Worldwide subscriptions up to 4.6 billion in 2009 Source: Information Economy Report 2009, UNCTAD (UNCTAD based on ITU and national data ) Mobile subscriptions per 100 inhabitants, , by country group

Internet users keep expanding Now 1.4 billion users; highest growth in the South Internet users per 100 inhabitants, , by country group 15% growth Worldwide in % growth for developing countries China has largest number of internet users (298 millions) Source: Information Economy Report 2009, UNCTAD (UNCTAD based on ITU and national data )

8 Widening divide in broadband connectivity Now 400 million fixed broadband subscribers Broadband subscriptions per 100 inhabitants, , by country group 8 times higher penetration in developed than in developing economies… … >200 times higher than in LDCs Source: Information Economy Report 2009, UNCTAD (UNCTAD based on ITU and national data )

Trends in e-commerce in DCs 9

10 Trends in e-commerce in DCs Towards m-commerce No data on the volume of e-commerce in DCs but a large share is B2B Mobile-based services: M-banking, M-commerce: oCellbaazar, M-pesa, etc. E-government developing in many DCs, so are legal frameworks

11 Obstacles to e-commerce& m-commerce in DCs o Literacy; not so much an issue for m-commerce o Lack of supporting policies; o Availability, speed and cost of Internet access, low computer penetration, lack of relevant mobile applications; o Lack of payment and delivery facilities; o Lack of e-commerce culture o Lack of content in local languages. o Lack of trust, of legal framework, o Lack of knowledge on ODR procedures

Legal infrastructure supporting e-commerce in DCs 12

13 Role of UNCTAD Building legal frameworks UNCTAD’s Program on ICT and Law Reform – Builds capacity of policy makers and legal practioners: distance learning and face-to-face training course on the Legal issues of e-commerce – Prepares comparative studies on regional harmonization of cyberlaws (Latin America, Central America) – Drafts and reviews cyberlaws Active in 26 DCs: Latin and Central America, East African Community and Cambodia and Lao PDR UNCTAD works in cooperation with UNCITRAL and regional institutions.

Challenges for ODR in DCs 14

15 ODR in developing countries Has not really taken off Very few ODR providers in DCs, even less using SMS based mobile phone interactions Pioneers : China, Peru, India and Singapore Challenges include: o adapt to new mobile platforms rather than computers; o develop relevant ODR applications and content in local language; o create awareness and change culture.

16 ODR in India Cyberarbitration.com Front runner in the implementation of ODR Very few ODR providers Cyberarbitration.com targets B2B but also B2C, C2C, B2G and G2C; number issues arising pertaining to Intellectual Property Rights and their violations A limited increase in the number of cases since the beginning of arbitration An increase in the number of cases expected with the mobile Internet and mobile revolution

17 ODR in India Cyberarbitration.com Challenges include: o slow adoption of computers and the online environment o superficial penetration of computers o “Feel and touch” culture o Lack of awareness about ODR mechanisms among the relevant stakeholders

Policy implications 18

19 Policy Implications Educate and create awareness among merchants and consumers regarding the impact and increasing importance of ADR/ODR in resolving commercial disputes Ensure that national legislation recognizes the validity and enforceability of electronic transactions and facilitates the use of out-of-court dispute settlement schemes.

20 Policy Implications Consider mobile devices platforms Enhance cooperation and exchange with other service providers Promote voluntary adherence by e-businesses to trustmark and reliability programmes Give sufficient attention to cultural and linguistic differences in providing ODR services

21 The Information Economy Report 2009 Study on Prospects for cyberlaws harmonisation in Latin America Thank You! Can be downloaded free of charge on