ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

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Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force
on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) shall promote
policies designed:
– to achieve the highest sustainable economic growth and employment and a rising standard of living in
Member countries, while maintaining financial stability, and thus to contribute to the development of the
world economy;
– to contribute to sound economic expansion in Member as well as non-member countries in the process of
economic development; and
– to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance
with international obligations.
The original Member countries of the OECD are Austria, Belgium, Canada, Denmark, France, Germany,
Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland,
Turkey, the United Kingdom and the United States. The following countries became Members subsequently
through accession at the dates indicated hereafter: Japan (28th April 1964), Finland (28th January 1969),
Australia (7th June 1971), New Zealand (29th May 1973), Mexico (18th May 1994), the Czech Republic
(21st December 1995), Hungary (7th May 1996), Poland (22nd November 1996) and Korea (12th December
1996). The Commission of the European Communities takes part in the work of the OECD (Article 13 of the
OECD Convention).



Introduction

Electronic commerce over the Internet is a new way of conducting
business. Though only three years old, it has the potential to radically
alter economic activities and the social environment. Already,
it affects such large sectors as communications, finance and retail
trade (altogether, about 30 per cent of GDP). It holds promise in
areas such as education, health and government (about 20 per cent
of GDP). The largest effects may be associated not with many of the
impacts that command the most attention (e.g. customised products,
the elimination of middlemen) but with less visible, but potentially
more pervasive, effects on routine business activities (e.g. ordering



Economic drivers of e-commerce
Five broad themes have emerged as important for understanding
the economic and social impact of electronic commerce:
The effect on the marketplace... Electronic commerce transforms the marketplace. E-commerce will change
the way business is conducted: traditional intermediary functions
will be replaced, new products and markets will be developed, new
and far closer relationships will be created between business and
consumers. It will change the organisation of work: new channels of
knowledge diffusion and human interactivity in the workplace will
be opened, more flexibility and adaptability will be needed, and
workers’ functions and skills will be redefined.
office supplies, paying bills, and estimating demand), that is, on the
way businesses interact.1