Analysis: IT Strenths and Weaknesses
Strengths
Bolivia has already made great strides in recent years through the deregulation of its telecommunications industry and is poised to enter the online economy. Beginning with the privatization of its telecommunications industry, the Bolivian government has shown its commitment to the local economy and infrastructure by supporting foreign direct investment in its telecommunications and transportation infrastructures. It's three largest cities La Paz, Santa Cruz, and Cochabamba already host many companies offering web design and software development and there are 18 ISPs now operational in Bolivia.
The rapid growth of the cellular and satellite industries offers Bolivia the promise of an expedited route to the Internet economy. Bolivia already has over 372,800 cellular subscribers as of 1999 and as wireless Internet access and applications develop Bolivia will be well positioned to take advantage of these emerging wireless technologies without waiting for upgrades to its existing land-line infrastructure.
Weaknesses
It may take several years before Bolivia truly enters the online e-commerce world. The underdeveloped telecommunications and transportation sectors will keep many Bolivians from adequately accessing the Internet for many years to come. Another roadblock facing Bolivia is the lack credit and credit card usage. Bolivia is still a cash economy and until a different online e-commerce model is developed, Bolivia like many of its third world neighbors will not be able to create or sustain and online e-commerce initiative. Another weakness facing Bolivia is its unreliable transportation and postal system. Without a strong distribution core, no country can be successful online where dependable transportation and shipping methods are critical.
