South Asia be carved? Will it have to rely completely on traditional concepts of trade policy and market access of governments?
The private sector today cannot have ‘government’ as an excuse for market access barriers. The focus should be on finding economic growth models for the region and not just on relying on trade policies. Creating a connectivity roadmap to local markets will go a long way, rather than just waiting for market access issues to be solved.
These might not sound and feel doable but the length and breadth of such targets can unbridle South Asia as it has done for the young entrepreneurs and MSMEs of some regions. They say an MSME benefits 40 percent more by being connected to markets, rather than mere market access earned by it’s government. According to eBay, digital connectivity benefits an MSME 90 percent more compared to traditional marketing tools.
Digital trade is the fastest and most cost effective way to developing a digital South Asian economy. The increase in mobility and the growth of the internet twenty-folds in the last ten years shows it’s growth, pace and accessibility. Examples like the Chinese Taobao online marketplace selling 1200 units per second are significant.
Most South Asian countries’ digital trade growth is far above their GDP growths. Bangladesh’s growth in online transactions grew 25 percent the last three years. India’s growth rate in digital trade is 15 percent. Kaymu reports that Sri Lanka has 51 percent new visitors on its digital platform, while Pakistan’s digital trade market, according to Kaymu, is expected to increase 72 percent in the next few years. Overall in 2014, 35 percent of the world’s e-commerce turnover came from Asia. This technology orientation of Asia is transforming the continent with e-commerce leading the way.
The private sector in South Asia, with the support of the Saarc Chamber, can start a ‘communications campaign’ across the region; encouraging youth and MSMEs to form online platforms and communities for online trade – digital trade – in South Asia.
A digital trade committee at the Saarc Chamber level, with national chapters, can kick-start reviewing the ICT law requirements of a digital South Asian economy. At the same time Saarc can consider a digital trade complaint unit. All the above efforts require minimum resources to launch a digital economy.
There is a phenomenal opportunity on the horizon for this region to connect to each other and to the world through the digital neighbourhood. A digital neighbourhood can make up for the decades lost in being away from each other and each other’s markets. All it requires is a consolidation effort – more so by the private sector to highlight its importance.
A digital South Asia is taking shape anyway, but it is very slow and without direction. South Asian leaders owe it to their generations to create the momentum and the speed to set free the economic destiny of millions.
The writer is a businesswoman based in Lahore. She analyses digital trends globally. Email: Huma.Fakharmapservicesgroup.com