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2018-03-15
Evolving Strategic Issues: The Knowledge Economy
By: Dr. John R.Ballard
Former Dean of the National Defense College
Developing a future national vision is fundamental to security in our complex age. Crafting such a vision requires an understanding of future geopolitical circumstances and best approaches for achieving national interests. To do that one must understand how national power and influence might be used in the future international system. One domain that has received great attention in the UAE is education, and its product, the knowledge economy. As our national priority, the transition to a knowledge economy merits better understanding from the strategic perspective.
Strategist Debra Amidon says, “The knowledge economy is the use of knowledge to generate tangible and intangible values... a system of consumption and production that is based on intellectual capital.” Achieving that economy is a worthy task, but understanding how it will change everyday lives is also important. Amidon notes the knowledge economy not only requires understanding but also know-how and social adaptation (in French: savoir, savoir-faire, savoir-être.) For a knowledge economy the production of information services and products is essential and that requires significant transformation in technical and scientific methods. While it is true that modern knowledge economies provide a large portion of the economic activity in many countries today, the pathway to that kind of economy is not smooth or easy. Such an economy relies on intellectual capabilities instead of natural resources. The UAE’s innovation efforts will enable such a transformation, as will the new national education system; both will make even more innovation possible – but there will be other effects of such change.
Human capital will become the key national asset once innovative intellectual services and products are regularly sold and exported, yielding profit for individuals, business and for the economy; this requires an “information society.” Yet, as that production change occurs, many jobs cease to exist and new skills must be developed leaving some people and many industries struggling to keep up. Other changes will be needed. Information economies result not from scarcity and great need (like oil economies), but rather from creativity and focus among an abundance of information. The geostrategic posture of the nation will change. Being a natural resource-rich, global hub will be less important for the UAE. Knowledge flows to where demand is highest and barriers are lowest; unlike many resources that are depleted when used, knowledge can be freely shared and should grow through use. This requires openness and trust rather than competition.
Virtual marketplaces and products can offer financial benefits and global reach, but may not provide the national leverage once offered by oil. Social structures, and cultural context will change, as will laws, fiscal barriers, taxes and even ways of measuring wealth and power.
Future UAE visions will undoubtedly ensure the strategic security and prosperity of the UAE through this transition.
The UAE has huge potential as the leading innovator in the Middle East region, and there is no doubt that the initiatives of our national leadership will ensure our future, but we all need to understand how this should happen to bring it about successfully.
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