Jamaica - what is the platform for E-commerce here?

Jamaica the third largest island in Caribbean was discovered by Christopher Columbus on may, 5th 1494. Like other developing countries it is standing on the threshold of various problems. It is under high foreign debts and encountering numerous economic, social and environmental problems. Mentioning the word e-commerce with Jamaica enlarges the picture of total frustration due to abound hold-on projects and lack of trusting e-customers. Only a few stories of victory linked to immigrants of Jamaica come on the scene. It's no wonder a dream-like imagery of Jamaica as an electronic hub in the next few years.

Revolution of e-commerce, digital currency and other internet activities in Jamaica is the only resolve to its domestic economic growth. One of the most visible examples in the field of economic growth is that of E-Commerce. It can improve business efficiency of the developing countries facilitating them into being a part of global economy and access to the latest technology available. Digital Currency, also known as ‘electronic money' helps consumers to take part in global electronic commerce. It has totally revolutionized the method of conductivity business on net. Unprecedented usage of electronic commerce and digital revolution has totally transformed the face of the economic structure of developing countries. Like those of Jamaica, that lag behind the technical advancements in internet are being bypassed by the more competitive ones.

Jamaica's one of the surrounding regions, Bermuda, has already bagged the title of "economic-hub of the region", having the history of fifty years of strong economic standards. It has its own Ministry of Telecommunications and E-commerce along with Web development, Payment Gateways and ASP support.

PRESENT SITUATION AND THE ROLE OF JAMAICAN GOVERNMENT

There are various small firms - specific problems faced by major developing countries. Whole Caribbean firm is basically a small firm in the category of e-commerce. The d-merits of such firms are:
- limited variety of products
- resources to reach the consumers are less
- Uncertainty of electronic market resulting in inadequate information.

BANKING SYSTEM

Banking system of Jamaica is the foremost issue of concern here due to the tensions of fraudulent marketers. Government will have to change the outlook of banking for the growth of economy.

TECHNICAL

Internet rates in Jamaica are touching skies. Government should promote internet services at low rates now along with hardware supply. This limits the possibilities of business on internet. Therefore, liberalization in the field of web and telecom market will result in reduced net charges. This will in turn increase cost efficiency of Jamaican e-commerce. The key to improve online business in the new economy is to reduce internet rates. Also, help to local companies in establishing e-commerce system is needed. With the increasing competition in ISP market and widespread of internet the rates will surely sink down.

WEB HOSTING

Here in Jamaica, the web hosting rates can make any local company ‘go to dogs'. Seeking help from any overseas solution provider organization proves better. GOJ should take steps to define the best possible applications.

PARADOXICAL OPINIONS

A few merchandisers view e-commerce and digital currency as a threat to their business. Whereas, the export based traders have a positive view and are excited by the idea of digital money and trading.

JAMAICA'S NEW E-COMMERCE LEGISLATION

GOJ is planning to provide a developed platform for the electronic business schemes. Economic Union is the need of the day based on common economic rules and policies. The lack of payment gateways hampers the business possibilities. E-commerce Pilot Project is on its way including protection services such as copyrighting, patenting and trade marking. For this purpose, it is essential for Jamaica to review the work of United Nation Commission on International Trade Law (UNICTRAL).

TRUSTING CUSTOMERS

Internet marketing is prone to many frauds. Web customers mostly rely on the renowned companies. This puts two types of traders in their goodwill-
- Firms well established in the normal market as well as digital market.
- Firms with brand names spending a lot on their publicity.
Where as, Jamaican firms as well as other regional firms do not fall even close to these. For this purpose, an alternative suggestion is to issue Trust Certificates by certification authority. This will surely build consumer's trust in the company.

UNRESOLVED ECONOMIC PROBLEMS

E-Commerce's production processes too take place in the basic economic structure. Jamaica has still to resolve its old economic problems which will definitely hamper the growth of digital economy. Some of the other inbuilt unresolved problems of the whole region are:

- Lack of skilled personnel
- High costing productivity areas
- Huge taxes imposed
- Governmental policies regarding business development

GROWTH IN E-COMMERCE AND DIGITAL CURRENCY

LEGAL ISSUES

GOJ is on the way of promotion of foreign investment with no regulations. Jamaica is now developing friendly relations with foreign investors. World Bank Study (2004) also regarded it as one of the top ten countries with the accessibility of easy business policies. It has also been compared positively to OECD countries in this respect.

In the area of e-commerce the division of opportunities is not at par. Language, functional literacy and proximity of the market are the basic issues which decide the growth in this area. Jamaica has been recognized as an important landmark regarding all these components.

LANGUAGE

Effective communication in English is a major advantage to Caribbean Exporters, whose first language is English. In contemporary era having the ability to communicate in English effectively is an additional boon for dealers as well as consumers.

MARKET PROXIMITY

Proximity of the markets involves transportation cost and timely delivery. The region of Jamaica has the benefit of being greatly accessible to the largest market. Market of US is regarded as the biggest market not only in size but also in dollar volume.

FUNCTIONAL LITERACY

This is crucial for the implementation of digital economy. The country with the better functional literacy than other would surely be the advantageous in the present economic trends. Jamaica, as per the charts of 1999 had highest level of literacy level counting to 14.5% followed by Guyana, Trinidad and Tobago and Bahamas; all with the same economic structures.

DIGITAL CURRENCY USE

The use of digital currency is slowly rising in Jamaica, almost at snail's pace. This is so because Jamaicans are not technology savvy and do not trust using the Internet for paying or receiving money. Many fear losing their money and that their personal information would be at great risk. Nonetheless some Jamaicans are using digital currencies and the more popular ones are Paypal and E-gold.

Most of the persons who use Paypal are people who own and operate a business and use it for that purpose. Those who use it for personal transactions do so because Paypal is accepted by many online merchants, and getting a credit card in Jamaica is so prohibitive that Paypal is the best option. Those who have an E-gold account use it to send and receive money. E-gold is easily converted into local currency through a third party exchange. This cannot be done with Paypal if you live in Jamaica. Paypal will issue Jamaicans a check, which will take up to three months to clear through the banking system.

The other digital currencies such as Ebullion, Liberty Reserve, and Pecunix are not as popular in Jamaica.

CONCLUSION

Therefore, facilitation and regulation of e-commerce and digital currency in Jamaica depends on various issues like - liberalization of internet charges, adequate product selection, acquiring trust of the consumers, technical support for the existence of digital economy, skilled personnel and taxation policies. This way e-commerce and digital currency can take the shape of reality even in the developing countries like Jamaica in accordance to a serious thought of government of Jamaica and international community in its support. It is hence essential for the government to improve info-sharing than in direct investments in SME's as other developing countries did in the past.