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U.S. Taps Overseas Market Dot.com Market
The Internet is taking the world by storm with revenue and employment numbers skyrocketing in the past year, according to a study released this week. But the United States may lag behind due to a lack of manpower.
A study funded by Internet company Cisco Systems and researched by analysts from the University of Texas at Austin's Center for Research and Electronic Commerce, found that the Internet industry added about 650,000 jobs last year alone. Revenue increases soared 62 percent, to a total of $523.9 billion. The study estimates that number could exceed $850 billion this year.
"It's contributing to a big chunk of the overall U.S. economy," said Anitesh Barua, a professor at the University of Texas and a lead author of the study. "We need more people to come and work in this Internet economy."
Around 1994, the Internet economy began growing at an astounding pace, quicker than the 18th century Industrial Revolution, the study found. Researchers also said companies or parts of companies that generate revenue directly from Internet-related activities accounted for nearly 2.5 million jobs.
As e-commerce continues to soar, so do the number of Internet jobs available. Barua noted that the study's numbers understate the actual number of "Internet jobs" out there. But the United States is in need of skilled workers to fill them.
"The United States is hiring out foreigners to work, we don't have to bring them over here," said Barua, who is from India and noted the high number of Indians across the ocean doing programming work for the United States.
With current legislation on the floor of Congress concerning H-1B visa caps — which would eliminate or raise the cap on skilled foreign worker visas — and passing PNTR with China, moves are being made to make Internet growth a global phenomenon.
Barua and other panelists agreed that the continued success of the Internet depends not only on the incorporation of the Web in businesses in this country, but in those abroad as well.
"I think it's very clear that if you play in the Internet space and incorporate the Internet in every part of the business, you are going to be able to open global markets, Barua said.
Turkey Monitors Internet
Turkey has announced plans to tap into a group of senior military and intelligence officers to monitor the Internet for security threats, according to E-Commerce Law Report. The legislation, "Bill on the National Information Security Organization and Its Duties" is designed to address terrorist threats.
The Bill would require Internet firms to comply with measures promulgated by the watchdog body. This could possibly include monitoring all e-mails and turning over conspicuous messages, or face a prison sentence of one to five years.
EU Panel Approves 'Safe Harbor' Plan
A key European Union committee has unanimously approved a "safe harbor" privacy agreement aimed at providing U.S. companies with protection from the European Union's tough privacy law and preventing disruptions in the flow of information between Europe and the United States. While the agreement still needs to be reviewed by the European Parliament — which is widely expected to approve it — the committee's endorsement was seen as the biggest hurdle in the process.
European Commission Panel Approves VAT Tax
In a proposal not expected to carry much favor with U.S. businesses, the European Commission presented a directive to modify the rules for applying a value added tax (VAT) to certain electronic goods to create what the European Union calls an "even playing field" for taxation of digital commerce. Under the direction of European Commissioner for Health and Consumer Protection David Byrne, the objective is designed to levy the same tax on U.S. goods sold over the Internet that European companies bear when delivering services to consumers electronically.
Commerce Secretary William Daley announced that he has signed a joint statement on electronic commerce with Jordan. Jordan and the United States will cooperate in making it easier to use the Internet to address social challenges, such as helping working adults to acquire new skills, increasing access to healthcare, especially in isolated rural communities, improving the quality of life for people with disabilities, and strengthening democracy.
U.S. Battles International Piracy
President Clinton and Ukrainian President Leonid Kuchma issued a joint statement expressing their intent to combat the unauthorized production and export of CD-ROMs, CDs and DVDs in Ukraine, where the government has committed to implement the plan by November. In light of this agreement, U.S. Trade Representative Charlene Barshevsky will defer from August until December the decision on whether to designate Ukraine a "priority foreign country" under Special 301, which addresses the adequacy and effectiveness of intellectual property protection among the United States' trading partners.
Digital Divide Draws International Attention
Representatives attending the U.S.-European Union summit in Lisbon, Portugal, last week discussed the new economy and ways to bridge the digital divide. The parties addressed efforts by European and U.S. officials to encourage their societies to embrace the new economy, such as providing businesses with the freedom and support they need to innovate, Lael Brainard, U.S. deputy national economic adviser. They also are seeking to ensure citizens are educated and have access to new technologies, she said. Officials plan to move forward with proposals to help developing countries to "participate fully in the information revolution," Brainard said.
- by Liza Porteus
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