| May 24, 2005 - Washington, DC. On Friday, May 13, the Knowledge Management Unit of the Latin America and Caribbean Region of the World Bank and James Hanna, Consultant for Digital Development organized -with the cooperation of the Global Development Learning Network (GDLN)- a new dialogue via videoconference on e-Business. Friday’s topic was the development of online local content markets in Latin America
These markets play an important role by providing critical information input in areas such as market opportunities, competitors, suppliers, raw materials and legislation, and by helping to build communities of firms to collaborate based on mutual interests.
In Latin America, while there is frequently good progress in IT infrastructure and the basic policy framework underpinning e-business, online local business content markets generally remain very thin, particularly as regards the needs of micro and small businesses (MSBs).
Concern about this is enhanced by the fact that rich local content is not only a needed part of the e-business equation, but may indeed also be a leading ‘hook’ to help markedly accelerating the rate of e-business adoption by MSBs.
On May 13, speakers from the private (Terra, Telefónica Group) as well as the public sector (Sercotec Chile and Industry Canada), discussed the nature and structure of these markets, current trends, as well as market failures and constraints that impede market growth, and the steps that might be taken in Latin America today to increase the supply and demand of local online content.
The speakers also shared their countries’ experiences in this field, participating from Argentina, Canada, Chile and Mexico.
All speakers agreed that online content markets are in their infancy in Latin America and that practically no information is tailored towards MSBs although the first sites are emerging (e.g. in Mexico). The major players are media groups and printed media going online.
Why do these markets remain underdeveloped in the region? Both speakers and participants identified the following constraints:
- Low penetration and high cost of broadband conditions demand and supply of online content
- MSBs lack technical capacity and awareness of the benefits of online content markets
- Lack of public-private-academic alliances to bridge cultural, digital and educational gaps
- Lack of Government leadership in driving the digital agenda forwards
Specialized audiences connected to this videoconference from Argentina, Canada, Chile, Ecuador, El Salvador, Mexico and Nicaragua.
The next dialogue on Intermediate Organizations’ support for SME e-Business Adoption will take place on June 6, 2005. For more information please contact Daniel de la Morena (LCRKM) at ddelamorena@worldbank.org.
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