Creating a new Bahamas through a Knowledge Based Economy

A synopsis on how, through a Knowledge Based Economic Model, we can finally introduce an achievable way to diversify the Bahamian economy.

At the Asian Development Bank’s (ADB) 39th Annual Meeting in 2006, a seminar was held on knowledge-based economies (KBEs). The key message from presenters was that developing countries that fail to transform effectively into knowledge-based economies will fall further behind more advanced countries, widening the disparities between developed and developing economies. To succeed in this increasingly competitive and global economy, countries must have advanced information and communication technology infrastructure, a highly educated workforce, dynamic research and innovation programs, and supportive regulatory environment.

During the industrial age countries that had the greatest natural resources and the ability to harness those resources grew and prospered. We are now in a new age, the information age. Knowledge, in the form of ideas and intellectualism are the new keys to economic prosperity.

The World Development Report of 1998/99 stated that Ghana and the Republic of Korea started off with almost the same gross national product (GNP) in 1960. Thirty years later the Korean GNP had risen more than six times. Half of the gap could be explained in terms of traditional factor inputs, the other half, according to the World Bank report was attributed to “knowledge” as a factor of production.

Many countries in the developing world are making rapid progress to becoming knowledge-based (Finland, Republic of Korea, Singapore, New Zealand, and Taipei, China) and some developing countries have started initiatives to become knowledge-based (People’s Republic of China, India, and Malaysia). These developing countries have drafting plans which enable them to fully benefit from the mass production of knowledge.

The Asian Development Bank’s technical report on KBE states:

A durable Knowledge Based Economy can only be realized through linking the “internal social cohesion” of countries to their ability in stimulating, developing, and nurturing education; research and development; entrepreneurship; networks and ICT infrastructure; and provision of seed capital and intellectual property rights.

Over the years, these ingredients have become recognized as being essential for KBD.

The four underpinnings of the knowledge based economy are:

1-Telecommunication, ICT infrastructure;

2-Policy and Regulatory environment; Economic incentives

3-Education with strong emphasis on Math, Science and Technology

4-Dynamic research and innovation programs and systems

A word on Education

Education is the most important cog in the development of a knowledge based economy.  Knowledge, after all, will serve as the new currency.  This reality necessitates that the education system of the Bahamas be COMPLETELY revamped.  While a push to increasing scores in math and science are pivotal, it is by no means the ONLY essential.  Along with the revamp there MUST be fundamental changes in the education paradigm.  It is suggested that a program that focuses on correcting flawed assumptions concepts, values and practices be adopted as the basis of a new education curriculum.  Without this basic shift there will NOT be sufficient adopters to ascribe to this new economic model, and without achieving a critical mass an environment that is conducive to the vitality of KBE cannot be sustained.

In this regard it is suggested that the Government of the Bahamas adopts a new Vision Statement:

BAHAMIAN INNOVATION; building a new economy by providing what is essential to the world.

This idea encapsulates the concept that the Bahamas will position itself through Knowledge Management to provide innovation in what is essential to the economies around the world.  In this way we secure our future by becoming NECESSARY to others.  These focused areas of research will be in Renewable energy, Information technology, Health maintenance and Food and Water technologies.

The following is suggested:

• Begin the revamping of education with emphasis on MATH, SCIENCE and TECHNOLOGY
• Introduce a values-based curriculum emphasizing a shift in current corrupting paradigmatic constructs
• Establish an elite high school in Nassau for technology and sciences
• Develop a legislative framework conducive to the formation of the KBE
• Issue a call for all Bahamians abroad with advanced degrees in MATH, SCIENCE and TECHNOLOGY to return home and aid in the development of this new initiative
• Require BTC to meet advance telecommunications goals
• Establish incentives for COB to begin research initiatives
• Establish the Bahamas Science and Technology Commission:

            This body will have responsibility for:

School initiatives

-Institute the Brainetics ©math program NATIONWIDE

-Institute EyeQ © speed reading program NATIONWIDE

-Develop and institute a critical thinking program

-Overseeing the elite secondary (High) school

- develop criteria for and coordinate search efforts and vet all science teachers

            Legislative aid

- To advise the government on the way forward in developing legislation for knowledge based economy

-to issue patents

            Research and Innovation aid

-to oversee the activities of all research and development initiatives

-to grant approvals for experimentation and research direction

-develop scientific programs and incentives for schools throughout the nation

-seek out and offer incentives to established R & D firms and companies to build satellite operations in the Bahamas

National Goal

25,000 points of light by 2030; 25,000 Bahamians working directly in building a knowledge-based economy by 2030

Highlights

The global economy is changing,

Wealth creation through application of human knowledge and creativity is steadily outpacing wealth creation through extraction and processing of natural resources.

Knowledge has increasingly become the repository of value.

“The most important wars of the 21st century will be fought no longer on the physical battlefield, but in corporate boardrooms, laboratories, stock exchanges, classrooms, and shop floors.” –Fidel V. Ramos, former President of the Philippines

 “Knowledge is information that changes something or somebody—either by becoming grounds for action, or by making an individual (or an institution) capable of different or more effective action.” – Peter F. Drucker, regarded by business and the academe as the founding father of management study