Knowledge economy, technology and globalisation

Investopedia.com defines knowledge economy as a system of consumption and production, which is based on intellectual capital. The effect of this type of economy is obviously more felt in the developed world, while the few organizations in the developing countries that have partaken of this “paradigm shift” are either unable to maximize their potentials or migrate to the developed countries to become part of their development.

THE EVOLUTION OF “THE ECONOMY”

The Agrarian Economy- in the 18 Century, the developed world’s economy was largely underpinned by Agriculture. This brings to mind the era of plantations and “plantation boys”. Slave trade was highly visible at this time, because of the need to increase the availability of agricultural products and therefore the economy.

The Industrial economy: the agrarian economy evolved to the industrial economy. During the industrial age, emphasis was laid on manufacturing and the building of industries.

The Service Economy- the industrial economy eventually gave way to the mass-production economy.

The service economy enabled what Peter Drucker’s (1966) book, ‘ the Effective Executive” called the knowledge economy.

THE KNOWLEDGE ECONOMY AND TECHNOLOGY

Doubtless, the quest for knowledge and its use in development has enhanced the use of technology.

Information, which is in my opinion, the viable ingredient in knowledge acquisition, is made available with ease, these days, due to technology. The amount of data we have available in this age could at best only be imagined two decades ago. An example of the effect of technology on economy, these days will have to be the use of social media to advertise and make products as well as services available.

Recently, I was made aware of a virtual lab application, which I think the Nigerian government may wish to embrace, because as long as there is Wi-Fi and power, our students can access virtual labs without having to purchase any laboratory items. Can you imagine what this will do to education in the next decade? Can you imagine performing virtual dissection on a virtual rabbit? Can you imagine closing a million Pound deal, using a videoconference?

THE KNOWLEDGE ECONOMY AND GLOBALISATION

One day, two years back, I sat in a room of about 500 graduating students. We were from almost every country in the world (that was pretty obvious from the different names of the students that I had to listen to, as they called them up to receive their certificates). I was excited because that day was the first time I will meet most of my classmates as well as tutors, after two years “ in class”.

We had access to virtual classes, did projects together (I remember a classmate in my group from Venezuela and another from India. I have never been to these countries and I doubt that they have been to mine!). Truth be told, I didn’t feel like a stranger among my classmates, it actually felt like I had known them for a long time, we had become a team, a school, a class, if you will.

So, this is where we are. Where Knowledge acquisition is enhanced by globalization, using technology as the vehicle, there will be development; rapid development. Developed Countries are enjoying the dividends of the knowledge economy while developing countries, like Nigeria will need to lay more emphasis on technology, in other to catch up or at least follow closely.

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