No.20   December 1, 2000   Hastening to Embrace the Internet Revolution in Asia   Seiichi MASUYAMA        In order for Asia to benefit from the Internet Revolution that is rapidly sweeping through other areas of the world, a number of factors that are restricting its growth must be overcome. These include the limited usage of the Internet among small and medium-scale enterprises (SMEs) in Asia--which lags behind other regions in developing large companies; the undeveloped distribution and payment infrastructure; inefficiencies in the service sector supporting e-commerce; inadequacies in the institutional frameworks; and the thin layer of human resources.    Substantial strides towards overcoming these problems are being made by Asian NIEs, which are adopting and implementing policies that are more advanced than those of Japan in such fields as presenting visions, expanding Internet access, developing communications and institutional infrastructures, and creating international networks. As a result, a digital divide is emerging as the gap with late-starting countries continues to expand, leading to a role reversal that has destroyed the long-standing development pattern in Asia in which Japan has assumed the lead as other countries have taken off one after another much like the orderly take-off of a flight of wild geese. Accordingly, Japan should re-structure its economic relationships with other Asian countries by recognizing the new realities stemming from the changes that are emerging from this Internet Revolution. Contents I The Immediate Impact of the Internet Revolution on Asia 1 Rapid Expansion in Asian IT Industry Centered on Equipment Manufacturing 2 E-Commerce Market Still in Its Infancy 3 Factors Restricting the Development of E-Commerce in Asia II Strengthening Policy Measures for IT Innovation in NIES 1 Framework of Policy Measures 2 Presenting Clear and Specific Visions 3 Strategic Measures Towards IT Integration by All Government Organizations 4 Improving Communications Infrastructures Through Liberalization 5 Improving Institutional Infrastructures 6 Improving Access to the Internet 7 Supporting IT Innovation 8 Enhancing Human Resources 9 Moves Towards Electronic Government 10 Expanding and Strengthening International Linkages III An End to the Flying Geese Pattern of Development 1 The Competition Between Japan and NIES over E-Commerce Leadership 2 Concerns over Creating an International Digital Divide IV Remaining Political Tasks in Asia and Japan 1 Promotion of IT Innovations 2 Suggestions on Japan's Economic Policies for Asia GO to PDF