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and security issues. Second, the necessary legislation framework that protects 
trading partners must be developed. Third, the perceptions about technology as a 
tool that can threaten trust  need to change to acknowledge that technology can also 
be applied for the users’
protection, for example, through the effective use of 
encryption mechanisms. 
Digital Democracy 
Information and communication technologies offer opportunities for govern-
ments and citizens to be brought into closer dialogue; they also facilitate political 
organization and debate (Raab, et al., 1996). However, the extent to which the 
information superhighway can fully enable citizens to participate in this emerging 
‘digital democracy’, has been heavily debated. First, at a conceptual level, our 
understanding of democracy is “as bounded in time as it is rooted in space”
(Nguyen 
& Alexander, 1996, p. 120), which means that the term digital democracy is 
inherently problematic in ‘cyberspace’. Importantly, there is a concern that if 
citizens are not able to have access to on-line services, because they do not have 
the means or the knowledge to do so, existing patterns of inequalities will be 
reinforced. The digital democracy is threatened by “information aristocracy” 
(Carter, 1997). In particular, there is evidence of a gender and race gap in the use 
of the  Internet as well as differences for users with different levels of income and 
education (Hoffman and Novak, 1999; Kouzmin et al, 1999). While policy makers 
at an international level are concerned about access to electronic commerce, the 
burden falls mostly upon local authorities, which are responsible for the provision 
of access to network facilities through the use of public access centers, kiosks or 
tele-working centers. At a global level, the penetration of electronic commerce in 
developing countries is also an outstanding issue related to the “haves”
and “have-
nots”
in cyberspace, (e.g. Bhatnagar, 1997; Blanning et al., 1997; Clark and Lai, 
1998; Kim and Hong, 1997). Easy global information access, however, is also 
problematic as it has been described as threatening both cultural identity and the 
regulatory sovereignty of the state, especially when used in less powerful economies 
(Shields, 1996). Finally, as privacy protection is a major concern in electronic 
commerce there is a concern on whether ‘cyberspace’ can promote democracy