E-Commerce

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Draft Final Report

E-Commerce in Bangladesh: Status, Potential and Constraints

Najmul Hossain
December 2000

A report prepared for JOBS/IRIS Program of USAID. The author gratefully acknowledges comments received from Thierry Van Bastelaer, Catherine Mann, Dewan Alamgir, Asif Khan, Abu Saeed Khan, Tahmina Begum, Shabnam Nadiya and Tonmoy Bashar. The views and analyses in the paper do not necessarily reflect the official position of the IRIS Center, the University of Maryland or that of USAID.

E-Commerce in Bangladesh: Status, Potential and Constraints ACRONYMS
ASM B2B B2C B2G BB BGMEA BTRC BTTB CS DDN DFID DI DSL e-commerce EDF EFT e-mail e-market FDI GOB GSP IDA IOC IPO IPR IRIS ISO ISP IT ITU JOBS L/C LCA LMDS MMDS MOPT NIP OECD OSP Asian Sources Media Group Business-to-Business Business-to-Consumers Business-to-Government Bangladesh Bank Bangladesh Garment Manufacturers and Exporters Association Bangladesh Telecommunications Regulatory Commission Bangladesh Telegraph and Telephone Board Contract System Digital Data Network Department For International Development Data International Digital Subscribers Line Electronic Commerce Export Development Fund Electronic Fund Transfer Electronic mail Electronic Market Foreign Direct Investment Government of Bangladesh Generalized System of Preferences International Development Association International Oil Companies Import Policy Order Intellectual Property Rights Center for Institutional Reform and the Informal Sector at the University of Maryland International Standards Organization Internet Service Provider Information Technology International Telecommunications Union Job Opportunities and Business Support Letter of Credit Letter of Credit Authorization Local Multi-channel Distribution System Multi-channel, Multi-point Distribution System Ministry of Posts and Telecommunications New Industrial Policy Organization for Economic Cooperation and Development Outside Plant

PATC PC PDH PIAG PSI PTT QS RFP RIP RMG SDH SME Taka TRIP UNDP UNICEF UNIDO USAID VoIP VSAT WTO

Public Administration Training Center Personal Computer Plesiochronous Digital Hierarchy Policy Implementation and Analysis Group Pre-shipment Inspection Post, Telegraph and Telephone Quality Standards Request For Proposal Revised Industrial Policy Readymade Garments Synchronous Digital Hierarchy Small and Medium Enterprises The currency of Bangladesh. US$ 1=Taka 54 approximately Trade-related Intellectual Property United Nations Development Programme United Nations Children’s Fund United Nations Industrial Development Organization United States Agency for International Development Voice over Internet Protocol Very Small Aperture Terminal World Trade Organization

E-Commerce in Bangladesh: Status, Potential and Constraints

TABLE OF CONTENTS Executive Summary
1. Introduction
1.1 1.2 1.3 The Role of E-Commerce in the Era of Globalization Objective of the Study Organization of the Report

I
1
1 2 2

2. The Existing Situation and Potential of E-Commerce in Bangladesh 2.1 2.2 2.3 Business-to-Consumer (B2C) Scenarios Business-to-Business (B2B) Scenarios Business-to-Government (B2G) Scenarios

4
4 5 7 9 9 14 19 22 23 26 27 27

3. Supportive Framework
3.1 3.2 3.3 3.4 3.5 The Regulatory and Legal Environment Telecommunications: An Integral Part of E-Commerce Financing and Banking Mechanism Human Capital Governance, Policy Implementation Constraints

4. Conclusions and Recommendations
4.1 4.2 Legal, Regulatory and Institutional Constraints Recommendations

Reference Annex I Regulatory and Policy Aspects of E-Commerce

LIST OF BOXES
Box 1: Definition of E-Market Box 2: E-commerce in the RMG Sector Box 3: E-commerce in the Oil and Gas Sector Box 4: Acts and Laws Related to Consumer Protection Box 5: Independence of the Regulator Box 6: VoIP Application: An Illustration Box 7: Letter of Credit Mechanism Box A1: Objectives of the Industrial Policy 1999 Box A2: E-Commerce in the Developing...
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