From the middle of the 20th century, a profound transformation has unfolded on the global stage known as the knowledge revolution. The adoption of knowledge as a driving force for economic growth resulted in the introduction of a Knowledge-Based Economy making a departure from traditional models. This revolution has influenced the entire human sphere of activities, reshaping the trends of socioeconomic development of nations across the world. In this backdrop, nations that have effectively deployed knowledge for economic development made remarkable strides. For instance, South Korea has transformed itself from a poor agrarian society into a high-tech power house in a span of few decades by adopting this paradigm shift.
Pakistan, having traditionally relied on agriculture and labour-intensive industries such as textiles contributing over 60 per cent to exports faces cyclic economic challenges. The country continuously faces negative contractions of its GDP growth rate and almost 40 percent of its population lives below the poverty line which can be attributed to the country’s high reliance on traditional patterns of growth.
Pakistan has a great potential to thrive by embracing a Knowledge-Based Economy by relying on intellectual capital to drive economic growth. The country is characterised by a predominantly young population as it has about 64 per cent of its total populace below the age of 30. This human capital can serve as a valuable asset for this transition. The energetic and dynamic youth hold immense potential for driving innovation, technological advancement and overall economic growth. What is imperative is a well-organised, targeted and systematic approach to channel the energies and optimise limited financial resources.
Recently, initiatives have been taken aimed at fostering knowledge economy. These endeavours entail the promotion of the culture of entrepreneurship, innovation andstart-ups under the auspices of Offices for Research Innovation & Commercialisation in many universities. Moreover, the establishment of the National Aerospace Science and Technology Park (NASTP) also indicates an increasing emphasis on technology, science and business parks in the near future. These measures reflect a commitment to provide environment conducive for knowledge-based economic growth, laying the groundwork for innovation and progress.
However, several challenges persist that are impeding the country from transitioning to an economy based on the utilization and application of knowledge. The primary challenge is in the lack of digital infrastructure that further amplifies an already existing gap between equal access to information. As stated in the UNDP National Human Development Report 2020 on inequality, only half of Pakistan’s population has mobile phones and less than one-fifth uses the internet. With this digital disparity, Pakistan cannot embark on this journey as ICT infrastructure is basic requirement for this economic model.
Unlike the tangible nature of the first challenge concerning digital infrastructure, the other hindrance stems from the aspects of the education system, teaching method and individual attitudes towards knowledge acquisition. Regrettably, most students in the country go through the process of rote learning with no emphasis on developing the critical thinking. Analytical skills are critical to allow the selection of quality information and smart searching methods in a digital environment.
Another crucial is the frightful lack of Research and Development (R&D) investment for decades. Across various sectors, such as agriculture, manufacturing and service, the country still adheres to outdated practices which hinder innovation. According to the UNESCO Institute for Statistics, Pakistan spends only 0.3% of its GDP on R&D far from South Korea which is ranked first in spending on R&D and invests at least four percent of its GDP to research. Likewise, Malaysia and China devote 1.3% of their GDPs to R&D while Japan allocates 3.4%.
The above challenges cumulatively present formidable hurdles to adopt knowledge-based economy. To tackle the issue of the digital divide, Pakistan should focus on developing its digital infrastructure as well as initiating focused literacy programmes. Such programmes should aim to provide access to mobile phones and the internet to ensure equal opportunities for people, especially underprivileged communities, for knowledge acquisition.
Similarly, there is a dire need to incorporate a holistic curriculum to impart information and technological skills into the national education system of Pakistan. This curriculum should involve critical thinking practices, research skills and ethical information use, which will provide students with the ability to learn independently and produce analytical results that improve the quality of the workforce at large.
Finally, Pakistan must substantially raise its allocation to R&D. However, given the urgency of this transition and current budgetary constraints, it should be accompanied by encouragement for public-private partnerships and collaborations with foreign universities to pool resources, exchange skills and foster innovation.
In conclusion, the urgency to make this transition to reap its enduring benefits cannot be overstated. However, in charting the course towards a knowledge-based economy, it is crucial to address potential criticisms and concerns. By encouraging R&D activities and creating an environment that promotes innovation, Pakistan will be able to seize the opportunity and embrace this economic model for a brighter and more sustainable future.
—The writer is a researcher at Centre for Aerospace and Security Studies (CASS), Lahore, Pakistan.
Email: ramshashahid734@gmail.com
views expressed are writer’s own.
