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Arab Knowledge Report 2009: Towards Productive

Arab Knowledge Report 2009: Towards Productive

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In contradiction tothe call to restrict therole of the state inall matters impingingon economic activity,government bodiesin the <strong>Arab</strong> countriesmust play a directrole in facilitatingand organisinge-commerceactivities and findlegal solutions thatallow challengesto be confrontedE-COMMERCEWhile “e-commerce” is a relatively recentterm, use of computers, communicationsnetworks, and what is called electronic datainterchange goes back to the 1960s. Atthat time however, it was restricted to largeinstitutions, companies, and banks usingmainframe computers. Regardless of theproblems that still confront e-commerce,it is expected to continue to proliferateand generate expanded opportunitiesfor trade exchange and competition.These will be followed by attemptsto develop methods of production, expandchoices available to the consumer, andopen up access by small and mediumbusinesses to wider markets.Figure 4-9 sheds light on the growthof internet use by businesses–in mostof the world’s countries (the blue dots)and some <strong>Arab</strong> countries (the largersquares)–when plotted against growth inper capita income. The graph also showsthe position for some groups of countries(the circles). The correlation coefficient,which measures the strength of therelationship between pairs of variablesin such cases, reveals that for most of theworld’s countries there is a marked positivecorrelation between the indicator scoreand per capita income. However, the graphalso shows that the distribution of scoreson the indicator of the extent of businessinternet use for the <strong>Arab</strong> countries doesnot strongly correlate with per capitaincome. 33In contradiction to the call to restrict therole of the state in all matters impinging oneconomic activity, government bodies inthe <strong>Arab</strong> countries must play a direct rolein facilitating and organising e-commerceactivities and find legal solutions thatallow challenges to be confronted andthe opportunities they present to beexploited. In this context, the formulationFIGURE 4-9Change in business internet use plotted against per capita incomein some <strong>Arab</strong> countries and worldwide6.5World<strong>Arab</strong> countriesGroup of CountriesExtent of business internet use, indicator value (1-7)6R 2 = 0.67755.554.54Tunisia WorldUAER 2 = 0.1113Egypt JordanMENA3.5 MauritaniaKuwaitQatarBahrain3Morocco2.5Algeria20 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000Per Capita GDP in US $ (PPP)Source: World Bank database, <strong>Knowledge</strong> Assessment Methodology (KAM), http://info.worldbank.org/etools/kam2/KAM_page5.asp162 ARAB KNOWLEDGE REPORT <strong>2009</strong>

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