China's e-commerce success reflects digitalization benefits: World Bank
Digital technologies can be powerful tools in reducing poverty and injecting vitality in rural areas, a report jointly issued by the World Bank and Alibaba Group said.
The success of rural China's e-commerce development showed that digital technologies could not only benefit high-income countries and urban areas, but also developing countries and rural regions with the right conditions, the report said.
The report attributed rural China's e-commerce achievements to the country's "tremendous" improvements in human capital, logistics and transport infrastructure.
With the implementation of evidence-based policies that support e-commerce development for poverty alleviation, other countries can learn from the China experience to help make the dream of a world without poverty a reality, said Martin Raiser, World Bank country director.
The China experience shows that targeted support that lowers entry barriers and transaction costs, addresses information asymmetry and allows new entrants to participate in online markets can help launch e-commerce in less advantaged areas, the report said.
When more individuals, merchants and governments embrace the power of the Internet, big data and cloud computing, and understand the way of thinking in the digital age, they will not only change themselves with their creativity, but also boost the industrial transformation of the retail, wholesale, finance, manufacturing, service and other sectors, said Wen Jia, partner of Alibaba Group.
The report also pointed out that e-commerce should be deployed with care as it is not suited for all locations, households or products.