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This annual record examines how the net is reworking the worldwide panorama and the impression it really is having at the electronic economic climate of constructing nations. It identifies coverage and enterprise ideas on hand to those international locations and makes sensible proposals for maximizing the contribution of e-commerce to financial and social improvement.

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5 million in 2005 (eMarketer 2002b). One reason for the success of Latin American banks’ online ventures seems to be the attention they have paid to providing retail customers with multiple ways to access their accounts (Internet, telephone, wireless). However, given that the share of the total population that actually has a bank account is relatively small, the expansion of Latin American online banking may be facing a bottleneck. To achieve their objective of reducing the cost of traditional delivery channels, banks will have to attract even more of their users online and give incentives for more intensive use of their Internet services.

These patterns respond to differences in average annual per-capita IT investment. While Sweden and Denmark spend on IT more than 150 per cent of the EU average of €588 per capita, Italy and Spain invest 57 per cent and 46 per cent of that amount respectively. In Central and Eastern Europe (where 90 per cent of e-commerce takes place in just three countries, the Czech Republic, Hungary and Poland), some projections are that B2B e-commerce will amount to around $4 billion in 2003. 6 billion by 2006 (IDC 2003a).

5 52 .. 47 53 .. 45 55 .. 44 56 .. 4 57 .. 36 58 .. 31 60 .. 3 61 .. 17 63 .. 63 73 .. 54 76 .. 53 77 .. 47 78 .. 44 79 .. 42 80 .. 37 81 .. 07 82 .. Saudi Arabia .. 1 45 Iran .. 4 52 Pakistan .. 74 57 Algeria .. 56 58 Kazakhstan .. 52 59 Azerbaijan .. 37 60 Peru Countries not listed in the NRI Source: Dutta, Lanvin and Paua (2003) and Economist Intelligence Unit (2003). E-COMMERCE AND DEVELOPMENT REPORT 2003 16 CHAPTER 1: RECENT INTERNET TRENDS: ACCESS, USAGE AND BUSINESS APPLICATIONS The GITR relates gross domestic product (GDP) to NRI scores and concludes that low per-capita GDP levels strongly influence NRI scores, that NRI scores improve rapidly with small GDP increases, and that the influence of GDP diminishes quickly beyond $9,000 per capita.

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