African Development Bank Group    DEVELOPING KNOWLEDGE FOR ECONOMIC ADVANCEMENT IN AFRICA               Prof. John C. Anya...
Outline of PresentationI.     BRIEF STYLIZED FACTS ON AFRICA’S       ECONOMIC PERFORMANCEII.    A SNAPSHOT OF THE CONCEPT ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
BRIEF STYLIZED FACTS ON AFRICA’S ECONOMICPERFORMANCE Africa is less competitive than other regions  Comparative Global Com...
BRIEF STYLIZED FACTS ON AFRICA’S ECONOMICPERFORMANCE Africa is less competitive than other regions Global Competitiveness ...
BRIEF STYLIZED FACTS ON AFRICA’S ECONOMICPERFORMANCE  Africa lags its comparators and developed regions in key social indi...
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENTKnowledge is a multi-dimensional concept, consi...
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENT  The General Knowledge Model            Source...
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENT• Relationships of Knowledge Index and Indicato...
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENT•   The Three Interactive Pillars of the Knowle...
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENT•   Effects of Knowledge on Competitiveness and...
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENT•   Illustration of Knowledge as the Foundation...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
THE STATE OF KNOWLEDGE IN AFRICARetreating Knowledge in Africa  Knowledge Index: Relative Performance Over Time by Region ...
THE STATE OF KNOWLEDGE IN AFRICARetreating Knowledge in Africa                Knowledge Index: Relative Performance Over T...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
THE STATE OF KNOWLEDGE IN AFRICAPositive Correlation between Knowledge and CurrentEconomic Performance – Dominance of Adva...
THE STATE OF KNOWLEDGE IN AFRICAClose correlation between the Knowledge Indexand GDP per Capita in Africa         Knowledg...
THE STATE OF KNOWLEDGE IN AFRICAClose correlation between the Knowledge Indexand Economic Growth in Africa    Knowledge In...
THE STATE OF KNOWLEDGE IN AFRICAClose correlation between the Knowledge Indexand Human Development in Africa         Knowl...
African Development Bank Group              OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON              Development ...
THE STATE OF KNOWLEDGE IN AFRICAKnowledge accumulation is associated withhigher rates of future per capita GDP in Africa K...
THE STATE OF KNOWLEDGE IN AFRICAA one-unit improvement in the KI leads to an increaseof 0.90 percentage point in per capit...
RECOMMENDATIONS AND NEXT STEPS• Developing Educated and Skilled Workers   Creating a culture of continuous learning and  ...
RECOMMENDATIONS AND NEXT STEPS• Developing Educated and Skilled Workers   Drastically upgrading higher education -    imp...
RECOMMENDATIONS AND NEXT STEPS• Creating an Efficient Innovation System    Increasing R&D investment; strengthening Afric...
RECOMMENDATIONS AND NEXT STEPS• Creating an Efficient Innovation System  Innovation policies and increased R&D   investme...
RECOMMENDATIONS AND NEXT STEPS• Creating an Efficient Innovation System  Leapfrogging to innovation-driven economy      P...
RECOMMENDATIONS AND NEXT STEPS• Creating an Efficient Innovation System  Establishment of science and technology   parks ...
RECOMMENDATIONS AND NEXT STEPS• Creating an Efficient Innovation System  Attracting more foreign direct   investment (FDI...
RECOMMENDATIONS AND NEXT STEPS• Building a dynamic information infrastructure  Having national and regional ICT Plans   (...
RECOMMENDATIONS AND NEXT STEPS• Building a dynamic information infrastructure  Efficiently allocating assets that the pub...
RECOMMENDATIONS AND NEXT STEPS• Strengthening the Economic and Institutional  Regime – a number of African countries have ...
RECOMMENDATIONS AND NEXT STEPS• Strengthening the Economic and Institutional  Regime    Consolidating macroeconomic stabi...
RECOMMENDATIONS AND NEXT STEPS• Strengthening the Economic and Institutional  Regime    Reforming and strengthening judic...
CONCLUSION• More than money, needed: political, commitment,  transparency & accountability, collaborative spirit to  formu...
Thank you for Your Kind  Attention                51
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Anyanwu keynote developing knowledge for africa's ec. advancement

  1. 1. African Development Bank Group DEVELOPING KNOWLEDGE FOR ECONOMIC ADVANCEMENT IN AFRICA Prof. John C. Anyanwu Lead Research Economist Development Research Department African Development Bank TRA, Tunis, TunisiaKEYNOTE ADDRESS DELIVERED AT THE 2ND INTERNATIONAL CONFERENCEON AFRICAN DIGITAL LIBRARIES AND ARCHIVES (ICADLA-2), JOHANNESBURG, SOUTH AFRICA, 17 NOVEMBER 2011* The views expressed here are those of the author and in no way reflect thoseof the AfDB and its Executive Directors.
  2. 2. Outline of PresentationI. BRIEF STYLIZED FACTS ON AFRICA’S ECONOMIC PERFORMANCEII. A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLE IN ECONOMIC ADVANCEMTENTIII. THE STATE OF KNOWLEDGE IN AFRICAIV. RECOMMENDATIONS AND NEXT STEPSV. CONCLUSION 2
  3. 3. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  4. 4. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  5. 5. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  6. 6. BRIEF STYLIZED FACTS ON AFRICA’S ECONOMICPERFORMANCE Africa is less competitive than other regions Comparative Global Competitiveness Index (GCI) Performance on Broad Indices, 2010/2011 SUBINDEXES GCI 2010-2011 Basic requirements Efficiency enhancers Innovation and sophistication factors Economy Score Score Score Score North Africa 4.1 4.5 3.7 3.3 Sub-Saharan 3.5 3.7 3.4 3.1 Africa BRICs 4.4 4.6 4.4 3.9 Latin America & 4.0 4.3 3.9 3.4 Caribbean Southeast Asia 4.3 4.6 4.2 3.7 Source: WEF, WB and AfDB (2011) 6
  7. 7. BRIEF STYLIZED FACTS ON AFRICA’S ECONOMICPERFORMANCE Africa is less competitive than other regions Global Competitiveness Index: Comparative Scores, 2010/2011 1. Institutions 2. 3. Macroeconomic 4. Health 5. Higher 6. Goods 7. Labor 8. Financial 9. 10. 11. Business 12. Infrastructure environment and primary education market market market Technological Market sophistication Innovation education and training efficiency efficiency development readiness size Economy Score Score Score Score Score Score Score Score Score Score Score Score Africa 3.8 2.9 4.1 4.3 3.1 3.8 4.2 3.7 2.9 2.9 3.4 2.9 BRICs 3.8 4.1 4.8 5.7 4.2 4.0 4.4 4.2 3.6 6.0 4.2 3.6 Latin 3.6 3.7 4.4 5.6 4.0 3.9 4.0 4.1 3.6 3.6 3.8 2.9 America & Caribbean Southeast 4.1 3.9 5.0 5.5 4.0 4.4 4.7 4.3 3.6 3.9 4.1 3.4 Asia OECD 4.9 5.2 4.9 6.3 5.2 4.7 4.7 4.6 5.0 4.8 4.9 4.3 Source: WEF, WB and AfDB (2011) 7
  8. 8. BRIEF STYLIZED FACTS ON AFRICA’S ECONOMICPERFORMANCE Africa lags its comparators and developed regions in key social indicators Table 3: Comparative Basic and Social Indicators Indicator Year Africa Developing Countries Developed Countries Basic Indicators Area (000 Km²) 30322.57 80975.97 54658.39 Total Population (millions) 2010 1031.47 5628.53 1068.73 Urban Population (% of Total) 2010 40.04 44.76 77.66 Population Density (per Km²) 2010 3.40 66.60 23.10 GNI per Capita (US $) 2009 1525.42 2780.29 39688.06 Demographic Indicators Dependency Ratio (%) 2010 78.12 52.80 .. Life Expectancy at Birth - Total (years) 2010 56.02 65.68 79.81 Infant Mortality Rate (per 1,000) 2010 77.95 53.09 5.75 Child Mortality Rate (per 1,000) 2010 127.22 51.38 6.30 Total Fertility Rate (per woman) 2010 4.44 2.67 1.77 Maternal Mortality Rate (per 100,000) 2008 530.21 440.00 10.00 Health & Nutrition Indicators Physicians (per 100,000 people) 2007 46.71 77.00 287.00 Access to Safe Water (% of Population) 2008 64.93 83.99 99.58 Access to Health Services (% of Population) 2000 65.32 80.00 100.00 Access to Sanitation (% of Population) 2008 40.82 54.60 99.85 Percent. of Adults (aged 15-49) Living with HIV/AIDS 2007 4.56 161.86 14.14 Child Immunization Against Tuberculosis (%) 2008 85.05 89.00 99.00 Child Immunization Against Measles (%) 2008 83.72 76.00 92.62 Daily Calorie Supply per Capita 2007 2461.74 2675.20 3284.70 Public Expenditure on Health (as % of GDP) 2008 2.41 4.00 6.87 Education Indicators Primary School – Total 2009 102.51252 106 101.4997 Secondary School – Total 2005 36.827545 62.31893 100.28181 Adult Literacy Rate - Total (%) 2006 64.796857 19.02674 .. Percentage of GDP Spent on Education 2008 4.563138 .. 5.41659 Sources : ADB Statistics Department Databases; World Bank: World Development Indicators UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports. Note : … : Data Not Available. 8
  9. 9. A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENTKnowledge is a multi-dimensional concept, consisting of ideas, facts, mental constructs,information, stories, pictures, data, instructions, and the sum total of symbolic structurespossessed by individuals, institutions, and societies, which guide behavior in all walks oflife and in all spheres of public and private activity. Forms of Knowledge and Ways of their Acquisition . Explicit knowledge as a Implicit/Tacit knowledge Public good Private good On-market - -Purchase of patents, -Hiring and service contracts acquisition licenses, software with carriers of implicit - Contracted research knowledge Off-market -Apprenticeship in public Spillover in the form of: Spillover in the form of: - acquisition institutions - Reverse engineering Learning-by-doing -Learning through texts and - Learning-by-watching -Learning-by-watching software - Learning on -Learning-by-interacting basis of patent documentation 9 Source: Kober (2009)
  10. 10. A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENT The General Knowledge Model Source: Newman and Conrad (1999) 10
  11. 11. A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENT• Relationships of Knowledge Index and Indicators Knowledge Index (KI) Education Index Innovation Index ICT IndexAdult literacy rate R & D researchers Telephones ComputersSecondary enrollment Patent count Internet usersTertiary enrollment Journal articles Source: Adapted from World Bank Institute (2007) 11
  12. 12. A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENT• The Three Interactive Pillars of the Knowledge Interacting with Economic and Institution Regime (EIR) Economic and Education Innovation An educated and skilled system population can use A system of organizations knowledge effectively that can tap into global knowledge to assimilate and adapt it, as well as create local knowledge Facilitates the effective communication, processing and dissemination of information EIR provides incentives for the efficient creation, Information dissemination, and use of existing Infrastructure knowledge Institutional Regime (EIR) Source: Adapted from World Bank Institute (2007) 12
  13. 13. A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENT• Effects of Knowledge on Competitiveness and Economic Advancement Intangible investments Higher skill levels Education Innovations in products and processes Training Incorporation of new technologies R&D ICT Greater competitiveness Increased GDP per capita Lower costs Higher salaries and wages Access to new markets Improvements in external balances Increased quality Source: Adapted from World Bank Institute (2007) 13
  14. 14. A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLEIN ECONOMIC ADVANCEMTENT• Illustration of Knowledge as the Foundation of Economic Advancement: South Korea vs Ghana Source: Adapted from World Bank Institute (2007) 14
  15. 15. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  16. 16. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  17. 17. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  18. 18. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  19. 19. THE STATE OF KNOWLEDGE IN AFRICARetreating Knowledge in Africa Knowledge Index: Relative Performance Over Time by Region and Income Group 10  G7  Western Europe  High Income 8 Improvement  East Asia and the Pacific  Europe and Central Asia 2009  All Countries 6  Upper Middle Income  Middle East and North Africa  Latin America  Lower Middle Income Regression 4 Sub-Saharan Africa  South Asia Africa  Low Income 2 2 4 6 8 10 2000 Knowledge Index Fitted values 19
  20. 20. THE STATE OF KNOWLEDGE IN AFRICARetreating Knowledge in Africa Knowledge Index: Relative Performance Over Time South Africa 5 Tunisia Mauritius Egypt, Arab Rep. 4 Improvement Algeria Morocco Namibia Botswana 2009 Cape Verde 3 Zimbabwe Swaziland Kenya Sudan Angola Senegal Nigeria Regression 2 Ghana Mauritania Cameroon Lesotho Zambia Benin UgandaCote dIvoire Tanzania Madagascar Mali Eritrea Djibouti GuineaMalawi Burkina Faso Mozambique 1 Ethiopia Leone Sierra Rwanda 1 2 3 4 5 6 2000 KI Fitted values 20
  21. 21. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  22. 22. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  23. 23. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  24. 24. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  25. 25. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  26. 26. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  27. 27. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  28. 28. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  29. 29. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  30. 30. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  31. 31. THE STATE OF KNOWLEDGE IN AFRICAPositive Correlation between Knowledge and CurrentEconomic Performance – Dominance of AdvancedEconomies Knowledge Index and GDP Per Capita in 2009100000 Luxembourg 20000 40000 60000 80000 Norway Qatar Switzerland Denmark Ireland Netherlands Belgium States United Austria Sweden Finland Australia Kuwait France Germany Canada Japan Iceland Singapore Arab Emirates United Kingdom United CyprusItaly Spain Greece Kong, China Hong New Zealand Israel Slovenia Portugal Oman Bahrain Malta Czech Republic Slovak Estonia Rep. Korea, Croatia Republic Trinidad and Tobago Hungary Saudi Arabia Barbados Venezuela, RB Chile Latvia Poland Lithuania Kazakhstan Uruguay Mauritius Costa Argentina Federation Lebanon Brazil Russian Turkey Mexico Panama Romania Dominican Colombia MalaysiaFYR NamibiaEgypt,Peru Dominica Rica Syrian Lanka Jamaica Macedonia, Bulgaria Botswana Tunisia South Africa Ecuador Rep. Serbia Angola SwazilandAlbaniaBosniaJordan Belarus MoroccoKyrgyz Republic Azerbaijan Islamic Guatemala Uzbekistan Georgia Rep. Ukraine CapeAlgeriaArab Republic Herzegovina El Salvador Araband Iran, Thailand China Moldova Verde Fiji Guyana MalawiCameroon Honduras Paraguay GuineaFaso PDR Indonesia Nigeria Senegal Mozambique Pakistan Mauritania EthiopiaUganda KenyaTajikistan MaliBenin Bangladesh Tanzania Nepal Madagascar Sri EritreaGhana ZimbabwePhilippines Rwanda CoteSudan Rep. Bolivia Sierra CambodiaNicaragua Vietnam Mongolia BurkinaLesotho India DjiboutiLao Leone dIvoire Yemen, Zambia Rep. 0 0 2 4 6 8 10 Knowledge Index GDP per capita (current US$)2009 Fitted values 31
  32. 32. THE STATE OF KNOWLEDGE IN AFRICAClose correlation between the Knowledge Indexand GDP per Capita in Africa Knowledge Index and GDP Per Capita of African Countries in 2009 8000 Mauritius 6000 Botswana South Africa 4000 Angola Namibia Algeria Tunisia Cape Verde Morocco Swaziland 2000 Egypt, Arab Rep. Djibouti CoteGhana Sudan dIvoire Cameroon Zambia Nigeria Senegal Mauritania Lesotho Benin Kenya Mali Rwanda Eritrea Burkina Faso Malawi Tanzania Mozambique Uganda Sierra LeoneMadagascar Guinea Ethiopia Zimbabwe 0 1 2 3 4 5 Knowledge Index GDP per capita (current US$)2009 Fitted values 32
  33. 33. THE STATE OF KNOWLEDGE IN AFRICAClose correlation between the Knowledge Indexand Economic Growth in Africa Knowledge Index and Economic Growth of African Countries in 2009 10 Ethiopia Malawi UgandaNigeria Egypt, Arab Rep. Mozambique Zambia Tanzania Zimbabwe 5 Djibouti Morocco Mali Ghana Rwanda Eritrea Benin Sudan Burkina Faso Cote dIvoire Sierra Leone Cape Verde Lesotho Tunisia Mauritius Angola Kenya Senegal Cameroon Algeria Swaziland 0 Guinea Namibia Mauritania South Africa Madagascar -5 Botswana 1 2 3 4 5 Knowledge Index GDP growth (annual %)2009 Fitted values 33
  34. 34. THE STATE OF KNOWLEDGE IN AFRICAClose correlation between the Knowledge Indexand Human Development in Africa Knowledge Index and HDI of African Countries in 2009 1 .8 Mauritius Algeria Tunisia Botswana Egypt, Arab Rep. .6 Namibia South Africa Morocco Cape Verde Swaziland Ghana Cameroon Kenya Madagascar Nigeria Benin Mauritania Lesotho Uganda Senegal .4 Djibouti Cote Angola Rwanda Malawi Tanzania dIvoire Zambia Sudan Guinea Ethiopia Sierra LeoneFaso Mali Burkina Mozambique .2 Zimbabwe 1 2 3 4 5 Knowledge Index human development index Fitted values 34
  35. 35. African Development Bank Group OFFICE OF THE CHIEF ECONOMIST & VICE PRESIDENT, ECON Development Research Department
  36. 36. THE STATE OF KNOWLEDGE IN AFRICAKnowledge accumulation is associated withhigher rates of future per capita GDP in Africa Knowledge Index in 2000 and Per Capita GDP of African Countries in 2005-2009 10 9 Botswana Mauritius South Africa Algeria Namibia R2=0.82Angola Tunisia 8 Cape Verde Swaziland Morocco Egypt 7 Sudan Djibouti Nigeria Cameroon Côte d’Ivoire Mauritania Senegal Zambia Lesotho Benin Ghana Kenya Mali Burkina Faso Tanzania 6 Mozambique Rwanda Guinea Uganda Madagascar Sierra Leone Eritrea Zimbabwe Ethiopia Malawi 5 0 .5 1 1.5 2 Knowledge Index in 2000 (mean) lgdppc20052009 Fitted values 36
  37. 37. THE STATE OF KNOWLEDGE IN AFRICAA one-unit improvement in the KI leads to an increaseof 0.90 percentage point in per capita GDPSimple Regression of the Effect of Knowledge on Future per Capita GDP, DependentVariable is per Capita GDFP in 2005-2009 Variable Coefficient KI2000 0.899 (2.76**) Investment rate 0.872 (1.87*) Trade openness 0.366 (1.33) Share of urban population 0.516 (2.54**) Inflation rate 0.032 (0.26) Constant 0.426 (0.29) ** Significant at 5% significant level; * significant at 10% significant level. 37
  38. 38. RECOMMENDATIONS AND NEXT STEPS• Developing Educated and Skilled Workers  Creating a culture of continuous learning and openness to new ideas is critical for creating a knowledge-based economy in Africa.  Setting up a computer-based functional literacy (CBFL) program to arrest adult illiteracy.  Investing in hiring more qualified teachers and improved pupil-teacher ratios in schools.  A new system to focus on learning, rather than on schooling, and promote creativity. 38
  39. 39. RECOMMENDATIONS AND NEXT STEPS• Developing Educated and Skilled Workers  Drastically upgrading higher education - improved training programs and closer links between tertiary and vocational educational institutions o as well as private sector.  Emphasize the enrolment and teaching of sciences, math, and engineering technology  Stronger university-industry linkages  Increased involvement of the private sector, Missions and NGOs – including PPPs in education provision 39
  40. 40. RECOMMENDATIONS AND NEXT STEPS• Creating an Efficient Innovation System  Increasing R&D investment; strengthening African countries’ R&D infrastructure, developing technological innovations and altering the mind-set of its people toward better creation, acquisition, and use of technology Renewing business Competence structure New knowledge Start-ups, new business areas Affluence New business models and services Regional vitality Networking Growth and Employment R&D Innovations: products investment and services, methods globalization of Environment and health and processes, companies Security and safety organizational Productivity Social well-being innovations Investments Results Direct effects Impact on national economy and society 40
  41. 41. RECOMMENDATIONS AND NEXT STEPS• Creating an Efficient Innovation System Innovation policies and increased R&D investments are needed in each country in addition to regional strategies Science and Technology Councils are necessary at the Presidency or Prime Minister levels Collaboration and linkages among local firms, universities, and research institutes and the worldwide R&D network of multinationals Leveraging abundant Diaspora knowledge 41
  42. 42. RECOMMENDATIONS AND NEXT STEPS• Creating an Efficient Innovation System Leapfrogging to innovation-driven economy Path to Knowledge-Based Economy: African Countries Need to Leap-Frog to Reach the Knowledge- Based Economy Stage Soon Knowledge-Based Economies Factor Driven Investment Innovation Economy Driven Driven Economy Economy Country is a …cheap and …additional value beyond …unique high- Source of… abundant natural basic manufacturing value products resources and services Local …occupy a small …focus on product …driven advances Companies part of the value design, distribution, and in technology and … chain marketing business methods Workers… …are uneducated and …have basic education …are well educated focus on low-value but lack technical skills and highly skilled added tasks Nigeria Saudi United Country Ang China South Arabia States Examples Morocco ola Brazil Finlan Korea : Other African d Countries 42
  43. 43. RECOMMENDATIONS AND NEXT STEPS• Creating an Efficient Innovation System Establishment of science and technology parks Encouraging venture capital development and angel funds Develop communication and other infrastructure for R&, Creating an attractive environment to motivate R&D investments, including favorable tax, and other incentives. 43
  44. 44. RECOMMENDATIONS AND NEXT STEPS• Creating an Efficient Innovation System Attracting more foreign direct investment (FDI) Changing the way students are trained–-a process that will require changes in the education system, labor markets, and government policies Establishing incubators 44
  45. 45. RECOMMENDATIONS AND NEXT STEPS• Building a dynamic information infrastructure Having national and regional ICT Plans (including broadband plans) with a Digital Agenda Improving the overall environment for innovation and ICT Establishing an innovation-friendly environment and setting the ICT vision for the future Providing firms and consumers with incentives to extract value from the use of broadband 45
  46. 46. RECOMMENDATIONS AND NEXT STEPS• Building a dynamic information infrastructure Efficiently allocating assets that the public sector controls or influences Encouraging the deployment, adoption, and use of broadband in areas where the market alone is not enough Ensuring robust competition in telecommunications, including digital democracy Ensuring robust competition (including privatization) in the power sector 46
  47. 47. RECOMMENDATIONS AND NEXT STEPS• Strengthening the Economic and Institutional Regime – a number of African countries have made giant strides in reforms Economic and Institutional Regime Index By Country in 2009 Economic and Institutional Regime Index: Relative Performance Over Time Mauritius Mauritius 8 8 Namibia Namibia 6 6 Botswana South Africa South Africa Botswana Madagascar Madagascar 2009 Cape Verde Cape Verde Mali Morocco Uganda Tanzania Tunisia Uganda Tanzania Mali Tunisia Morocco 4 4 Ghana Senegal Ghana Senegal Burkina Faso Egypt Mauritania Mauritania Burkina Faso Egypt Malawi Mozambique Malawi Benin Kenya Zambia Kenya MozambiqueZambia Benin Ethiopia Lesotho Swaziland Ethiopia Swaziland Lesotho Algeria Rwanda Algeria Rwanda 2 2 Djibouti Djibouti Angola Angola Côte d’Ivoire Sierra Leone Sierra Leone Côte d’Ivoire Cameroon Eritrea Cameroon Eritrea Nigeria Nigeria Guinea Sudan Sudan Guinea Zimbabwe Zimbabwe 0 0 0 10 20 30 40 50 0 2 4 6 Countries in Alphabetical Order 2000 Economic Incentive Regime Fitted values Economic Incentive Regime Fitted values 47
  48. 48. RECOMMENDATIONS AND NEXT STEPS• Strengthening the Economic and Institutional Regime  Consolidating macroeconomic stability;  Strengthening banking systems to enhance domestic resource mobilization;  Developing capital markets by improving the regulatory framework, reforming labor market practices;  Accelerating the pace of privatization and broadening the domestic investor base.  measures to attract larger volumes of foreign private capital inflows. 48
  49. 49. RECOMMENDATIONS AND NEXT STEPS• Strengthening the Economic and Institutional Regime  Reforming and strengthening judicial and legal systems and putting in place effective and transparent regulatory frameworks  Physical infrastructure (including ICT infrastructure) development  Strengthening governance through the development of participatory decision-making processes  Improving public service delivery, strengthening capacities, and ensuring greater accountability and transparency in public administration. 49
  50. 50. CONCLUSION• More than money, needed: political, commitment, transparency & accountability, collaborative spirit to formulate the requisite policies, strategies, plans and collective action as well as the institutional changes needed for leapfrogging to a knowledge-based and innovation-driven economy for economic advancement of Africa.• African countries to redouble their efforts to mobilize domestic revenues• Leveraging resources from emerging partners like the BRICs• Conference to provide answers to key digitization questions• Africa is reborn with a new optimistic face & at a turning point, in spite of challenges. 50
  51. 51. Thank you for Your Kind Attention 51

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