My model 2002_2011 [compatibility mode]
0 likes281 views
1) The document discusses making the new, technology and innovation-driven economy work in Africa. It proposes a model where investment in training programs over 5-10 years can move people from an "old economy" of outdated skills into a "new economy" of information literacy, entrepreneurship and rising living standards. 2) Key action points include investing in IT training at all levels and supporting private sector initiatives, as well as ensuring an enabling environment through infrastructure, legislation and reducing red tape. 3) Past lessons for Africa include a lack of skills limiting participation in global trade and value creation from infrastructure, highlighting the importance of investing in an information-literate population to prosper in the new economy.
My model 2002_2011 [compatibility mode]
- 1. Francis Stevens George 1 FUTURE DIRECTIONS: MAKING THE NEW ECONOMY WORK IN AFRICA www.innovation africa.org
- 2. Technology and Economics • Growth and Development of any modern economy is based on innovation and new technology • Kondratief’s ”Long Wave Theory”. The role of technology in the ”upwave”. • Schumpeter: technology as the engine of economic growth • Mensch: Only innovation can overcome economic depression. 2 Francis Stevens George www.innovationafrica.org
- 3. Economic Pol/Eco Technology Innovation Impact on factors of production business cycles Influences First cycle French Revolution Industrial revolution I-iron, Land-iron & coal resources (1780s-1830s) textile, steam technology Capital-OT,BKn Labour-division of labour/fact. Workers. Enterprise-investment by landowners in new industry Second cycle Marx Industirla revolution II-steel Land-pig iron coal (1830s-1880s) industry/railroads Capital-joint stock, issuing of notes, stable banking system Labour-education of workers Enterprise-investment by State and VCs Third cycle Capitalism Electrical Land-coal, petrol, other metals (1880s-1930s) engineering/electricity/motor Capital-int. Finn. Labour-more skilled, demise of child labour, Enterprise-inter war speculation Fouth Cycle Socialism, Nuclear/oil/electronics/micro Land-alluminium, silicone, petroleum (1930s-1990s) Unionism, processing Capital-sophis. Fin mkts, Consumption Labour-highly skilled, universal education,unions Enterprise-international investment Fifth cycle Globalisation, Information Land-recycled/envio fM, (1990s- International, technology/telecoms/biotech/g Capital-single world market, money Integration genetic eng www.innovationafrica.or Francis Stevens George Labour-know.workers 3 g Enterprise-monopolistic media,IT, private ins. investors
- 4. My Model: The Starting Point 4 The world is characterise by two sets of economies.The New Economy is characterise by information literate persons creating new products and services. This new economy will experience rising living standards. At the other end, we find the Old economies. These are characterise by people with outdated skills, that participate in a limited manner in the world economy. This economy will experience stagnation and no growth. These two economies will be defined by a widening Digital Divide. Francis Stevens George www.innovationafrica.org
- 5. My Model: To Make the New Economy work in Africa: Starting Point Based on Joseph Schumpeter’s ideas 5 Well educated, information Rising Standard of living Literate. These men and women Create new products and services participate in the economy as Knowledgeable about market signals creative entrepreneurs. Develop products that markets wants Develop new business models Create jobs, income and increase savings FEATURES OF “NEW” ECONOMY Information based Products Internet, ICT Tele Services, E-commerce Intangible Assets Net Entrepreneurs Innovation is the driving force Not well educated, less educated, not information Stagnation, stagnant standard of living literate, outdated skills. Francis Stevens George www.innovationafrica.org Limited participation.
- 6. MyModel: Action Points 6 To move the ”Old economy” to the ”New Economy” Investment in training programs for all sectors of society, developing information literate leaders, entertaining and encouraging private sector initiatives. Innovation is the KEY Time scale 5-10 years. Francis Stevens George www.innovationafrica.org
- 7. Time Scale is 5-10 years My Model: To Make the New Economy work in Africa: Action Points 7 Well educated, information Rising Standard of living Literate. These men and women participate in the economy as Create new products and services creative entrepreneurs. Knowledgeable about market signals Develop products that markets wants FEATURES OF “NEXT” ECONOMY Develop new business models Information based Products Create jobs, income and increase savings Internet, ICT Tele Services, E-commerce Intangible Assets Net Entrepreneurs Innovation is the driving force Investment in Training Programs, Support for Private Sector Initiatives. Not well educated, less educated, not information Stagnation, stagnant standard of living literate, outdated skills. Limited participation. Francis Stevens George www.innovationafrica.org
- 8. My Model: To Make the New Economy work in Africa: Action Points Govt support enabling environment-telecoms, legislation, taxation, Red tape. Innovation is the driving force Rising Standard of living Well educated, information Literate. These men and women participate in the economy as creative entrepreneurs. Invest in IT Training at all levels, support private initiatives Not well educated, less Stagnation, stagnant standard of living educated, not information literate, outdated skills. Limited participation. 8 Francis Stevens George www.innovationafrica.org
- 9. Lessons from the Past….Remember 9 African countries focused on commodity products. The prices of commodities fell over time. Terms of trade worsen. Many failed to diversify into products that saw rising terms of trade. Non participation in the International Trading regimes because of outdated skills. Unmarketable skills Tourism was a late comer and of course because of poor infrastructure, many could not full develop their tourism potential. Many basic infrastructure industries were government owned. Inefficient and often badly managed. Remember one of the problems in Africa has been the lack of skills in the Industrial Age. Not enough engineers to maintain machines and plants. Traditional Western aid provided some industrial infrastructure, BUT because we lacked skills and knowledge, we did not create any value from these. Francis Stevens George www.innovationafrica.org
- 10. Key Elements 10 Need a good infrastructure. In the knowledge economy-human capital is part of the infrastructure! Tangible and Intangible infrastructure In the new paradigm, the tangible infrastructure is the information technology network. Many countries are privatising these as a condition from IMF/IBRD. Human Capital is the most important in order to create prosperity-the intangible. Intangible assets are the sources of value in the new economy. An information literate population has higher chance of increasing its standard of living than one that is not. Francis Stevens George www.innovationafrica.org
- 11. Conclusion 11 To join this New Economy we need to invest in our people. Knowledge is a key ingredient in a knowledge based economy Innovate!! Francis Stevens George www.innovationafrica.org