E-COMMERCE: BRINGING NEW OPPORTUNITY TO RURAL AMERICA
by Under Secretary of Agriculture Jill Long Thompson

During the 1800's, rural America's economy, commerce centers, and jobs were built and centered around river ports and rail ways. If a community didn't have access to these 'arteries of commerce', it didn't grow. In the 1900's, commerce moved along interstate highways and expanded federal and state roads. On the eve of the new millennium, the Internet provides access to the digital world and vital commerce passageways.

The Internet has changed the way we do business, communicate with our friends, interact with our government and view the world. As noted in the Administration's second annual e-commerce report, more and more businesses are connecting with customers over the Internet. Electronic commerce has grown from $7 billion in late 1998, to an estimated $1.3 - $3.2 trillion by 2003. An increasing number of families are now communicating by e-mail. As a result of President Clinton's E-Government Directive issued today, the Federal government will be making even more benefits and services available over the Internet. Classrooms are being connected to the world, and advanced medical technology is reaching some of the most remote clinics all thanks to the growth of the Internet.

Despite the growth in computer ownership and the Internet, rural Americans have lagged behind the other demographic groups. Rural areas that make investments in advanced telecommunications infrastructure enjoy the benefits and opportunities of the emerging digital society. For those that do not, the economic outlook is not so bright.

To bring the digital world to rural America, USDA has become a true partner with rural communities by providing access to needed capital. Through the Rural Utilities Service (RUS), USDA's financial support agency for rural electric, telecommunications and water utilities, deployment of fiber optic cable has doubled since 1993. One out of every ten miles of line owned by RUS borrowers is fiber optic. Through 1998, over $1 billion in fiber optic facilities and $725 million in digital switching and enhanced software in rural area has been financed. In 1999 alone, nearly half a billion dollars for financing rural 'digital-ready' infrastructure was made available.

USDA is also investing in rural America's classrooms, hospitals and clinics. Through the Distance Learning and Telemedicine Program (DLT), RUS has awarded more than $83 million for 306 projects since 1993. These investments will connect rural children with a new world of learning, as well as bring some of the most advanced medical technology and care to an aging rural population.

Today, the Internet is an 'artery of commerce' to market rural America's products, tourism, opportunities and resources. As this telecommunications revolution is changing the way the world lives and does business, USDA is assuring this vital technology is available in rural areas.

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