Appendix:
Study of the General State of Preparedness for Electronic Commerce in El Salvador
Summary
Consultant: Luis Sánchez Zimmermann
The aim of the study was to assess the current factors which influence the potential for promoting electronic commerce in El Salvador in the short and medium term, particulary on the part of small and medium enterprises.
There are a number of ongoing efforts to promote electronic commerce, particularly the Bureau on Electronic Commerce of the Chamber of Commerce and Industry (DIESCO) and the Salvadoran Exporters Corporation (COEXPORT), as well as more isolated initiatives on the part of individual entrepreneurs. Furthermore, the CENTREX program of the Central Reserve Bank is using its Website to facilitate export-related paperwork, and the Teledespacho system in Customs has revolutionized procedures for importers.
In terms of the legal framework, current tax legislation does not explicitly rule out electronic billing, but does require paper support of all transactions necessary for obtaining tax credits, which imposes limitations on electronic commerce. The Commerce Code lacks some of the guarantees necessary to ensure the reliability of electronic transactions, particularly the lack of validity of transactions which lack paper support. Banking legislation does admit the possibility of replacing written signatures with reliable digital facsimiles, and guarantees the confidentiality of information used in transactions. Current consumer protection legislation has helped create a more favorable environment for electronic commerce, with its emphasis on transparency and true competition.
On the basis of good practices identified in other countries, the study assesses a series of technological, infrastructural, economic, cultural, and legal factors which determine the success or failure of electronic commerce, and compares them to current conditions in El Salvador. In the area of technology, limitations in the areas of data encryption, national connectivity, and human resource training constitute an obstacle to this goal; in terms of infrastructure, telecommunications have yet to reach an adequate level of development to permit generalized e-commerce. In the economic arena, current levels of competition among suppliers of connectivity services is an advantage; however, Salvadoran products are not yet generally adapted to the potential and requirements of the types of international markets influenced by e-commerce. Another limitation can be found in the sphere of culture, particularly in terms of language, but also in terms of the prevailing business culture in El Salvador, in comparison to business cultures in the digital world. Finally, the study points out the lack of adequate institutional leadership either public or private to promote electronic commerce in El Salvador.
The study outlines a series of specific recommendations in terms of legislation, training, promotion and development of this field, as well as national policies which should take e-commerce into account; it also underscores the need to institutionalize e-commerce and to create a climate of awareness around this economic activity.
All rights reserved. Permission is granted to reproduce all or part of this publication as long as the complete source is cited: Conectándonos al Futuro de El Salvador, "Strategy for Building a Learning Society", San Salvador, 1999, http://www.conectando.org.sv/English/Strategy/