Issue
1. The purpose of this paper is to show that facilitating the growth of electronic commerce in New Zealand will play an important part in economic development.
2. Electronic commerce is driving significant changes in business and in the shape of both the economy and society as a whole. It can potentially deliver to New Zealanders important new opportunities. Hence the Government needs to take account of this rapidly changing environment for economic development initiatives to have the chance of maximum success.
3. Because the environment is changing rapidly, speed is of the up-most importance. Hence we urge that the necessary decisions to do with electronic commerce, such as the proposed ecommerce strategy and summit, be made as soon as feasible.
4. The first part of this paper talks about the "New Economy" and how this is changing perspectives internationally on what works in terms of economic development. Particular emphasis is placed on the role of networks in amplifying opportunity, how information and communications technologies (ICT) are driving both change and economic growth, and how the fastest growth in jobs occurs through the creation of new businesses.
5. The second part outlines the strengths and weaknesses in the current state of electronic commerce policy work in New Zealand. The main thrust is that although New Zealand is relatively well placed internationally when measured on a number of criteria (such as Internet access), more needs to be done in order to facilitate faster growth and spread the benefits to more people and communities. In particular the Government needs to move faster on creating the right environment for electronic commerce.
6. The third part offers a process for moving forward, including strong ministerial leadership, improved co-ordination across departments, and a sufficiently resourced co-ordinating body to manage the process, report to Ministers etc.
7. The Appendix includes a range of initiatives that might be included in a "New Zealand Electronic Commerce Readiness Strategy".
8. Note that we have chosen here to use the phrase "New Economy" as well as "Knowledge Economy". New Economy better captures the idea that all this is not just about new knowledge based industries, but about new ways of approaching all economic activity in order to capture the greatest growth potential.
9. The overall premise of the paper is that a future of high skills, high employment, a high value added economy and reduced inequality is dependant on the Government developing policies that support and are congruent with the dynamics of the New Economy. In the first instance this means rapidly increasing understanding of the New Economy - how it works and how it is different.
10. Additionally for economic and regional development policies to work they must be founded on the factors that have been identified as important for success in the New Economy, such as:
- excellence in public education;
- encouragement of innovation and entrepreneurship;
- an R & D infrastructure;
- availability of job-specific skills training;
- the creation and use of networks;
- on-the-job training;
- quality government; and
- focused economic development efforts that leverage local strengths and meet local needs.
11. A crucial part of this is to grow the use and availability of information and communication technologies (ICT) in all areas of activity - government, education, business and community.
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