Realizing Regional Integration Goals through Digital Trade:

The UN Perspective

Session II

Panel Objective:

The objective of the panel is to introduce roles, mandate, on-going initiatives of selected UN agencies active and pro-active in the digital economy in promoting regional integration in Asia Pacific:

• what they each do• where they are going• what they are ultimately trying to accomplish• how they can help public and private sector alike

Structure of the session

Introduction by the moderator

3 mini-Rounds of exchange

2 surprise questions…

Questions and answers session (using sli.do)

Panelists

Min Jung Kim

Legal Expert, UNCITRAL Regional Centre for Asia and the Pacific

Tengfei Wang

Economic Affairs OfficerTrade, Investment and Innovation DivisionUNESCAP

David Galipeau

Founder and Chief of the United Nations Social Impact Fund (UNDP-UNSIF)

DuangthipChomprang

Director, Regional Cooperation and Assistance, ITD

We need to hear from you too…

What is the digital economy?

ICT Sector / Tech Sector

Digital economy

Digital government / e-government

Digital economy: greater than social media/messaging; greater than tech/e-commerce companies

We are talking about the capacity to draw on digital technologies as a driver of growth across the whole economy

Big challenges in measuring the size and scope – limited data

Digital economy: pervasive, disruptive, accelerating, diversifying

x

Online shopping (goods)

Online trade in services

Online-to-offline

Gig economy

• “Digital goods” (e.g. apps, songs, videos)

• Services (e.g. BPO, financial services)

Capacity to draw on digital technologies as a driver of growth across the whole economy

Challenge to measure size and scope-limited data

Logistics

Payments

Connectivity (Digital Infrastructure)

Regulations

Business mobilityCompetition policy

Content accessData policies

Intellectual property rightsFDI limits

Online sales and transactionsPublic procurement

Quantitative trade restrictionsStandards

TariffsTaxes

Types of Electronic Trade

• E-Trade: all goods and services (both traditional and digital) traded internationally through electronic means

• E-commerce: the purchase of traditional goods and services through digital means

• Digital trade: all transactions involving digital goods and services as “digital trade”.

7

Connectivity: mobile has grown rapidly but fixed broadband lagging

ASEAN average speeds vary from 15-85% of global average

Source: Google/Temasek

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9387

79 7874

6762

5653 52

0

10

20

30

40

50

60

70

80

90

100

BruneiDarussalam

Thailand Myanmar Malaysia Singapore Philippines Indonesia Vietnam Lao PDR Cambodia

Fixed-line broadband subscribers (Per 100 inhabitants, 2016)Unique Mobile Broadbnad Subscribers (% of population, 2016)

Technology adoption: A long way to go in growing business use of ICT

Cambodia, 57.5

Indonesia, 30.6

Lao PDR, 24.3

Malaysia, 46.2

Myanmar, 30.1

Philippines, 80.4

Thailand, 52.9

Vietnam, 91.5

India, 78.0

China, 85.0

Global average, 69.0

Firms using e-mail to interact with clients (%)B2B ICT Use B2C ICT Use

Myanmar 3.3 3.3India 4.1 4.2Lao PDR 4.3 4.0Cambodia 4.5 4.0Indonesia 4.9 5.4Philippines 4.9 4.8Vietnam 4.9 4.9China 4.9 5.3Thailand 5.0 5.1Global average 5.0 4.5

Malaysia 5.7 5.9Singapore 5.8 5.5

Source: World Bank Enterprise Surveys Source: WEF Networked Readiness Index firm surveys 1=low use, 7= high use

Logistics and trade facilitation: some signs of improvement but still a major constraint

Need to improve not just domestic connectivity – but also ease of shipping internationally – if e-commerce is going to grow

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Ease of arranging international shipments

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Postal Reliability Index

Source: UPU Source: World Bank Logistics Performance Index

Cross-cutting policy and regulatory infrastructure: it can enable or hinder growth

electronic documentation

e-signature

e-payments

Consumer protection

Intermediary liability

Privacy and data

protection

Server localization

requirements

Data flows restrictions

e-tr

ade

regulation

Ban of online sales

Enabling regulatory policies Restrictive measures

The challenge for Myanmar:Getting the balance right between enabling and restrictive regulatory measures

The opportunity: Regulatory infrastructure is still largely under development; less “legacy” issues than other ASEAN countries

Opportunity to benefit from regional experience-sharing and cooperation

What are eTrade Readiness Assessments ?• Objective: to assess countries’ current strengths, weaknesses, gaps and opportunities in

the seven policy areas identified by eTrade for all• Methodology: surveys, in-country mission/focus group discussions, report drafting and

validation (eTrade for all partners)• Main outcome: identification of priority actions to increase the uptake of e-commerce• Countries covered:

- 2017 completed: Cambodia, Bhutan, Samoa, Nepal - 2018 completed: Lao PDR, Liberia, Myanmar- 2018 on-going: Senegal, Solomon Islands, Togo, Uganda, Vanuatu and Zambia

Key findings – ASEAN LDCs

In place in capitals, mobile-only. Smartphone + Facebook first

95% COD. Bank offering DFS. Growing FinTech development.

Last mile / physical addressing issues. Deminimis not applied. Cross border paperless trade growing

ICT risk-prone sector. Venture capitalists and business accelerators pioneers not here.

Outdated ecosystem. eTransactionfocus Online consumer concerns growing.

Curricula outdated. Focus on ICT skills only. Business accelerator and co-working space everywhere

Lack of a single shared vision for e-commerce development

Panel Objective:

The objective of the panel is to introduce roles, mandate, on-going initiatives of selected UN agencies active and pro-active in the digital economy in promoting regional integration in Asia Pacific:

• what they each do• where they are going• what they are ultimately trying to accomplish• how they can help public and private sector alike