D E V E L O P M E N T __utteacn P U T T I N G K N O W L E D G E T O W O R K F O R D E V E L O P M E N T k F A L L 2 0 0 1 V'1 THE KNOWLEDGE s-yk~~a Mm -7 MP .1 f-.W 1 \/.v ; ALSO msDnsohn on FigVjn t a N - i t i v - - . R L D B A N K I N * X ~~~~~~~~~~~~~~~~~~~~~~~flLs ALSO: James D. Wolfensohn on Fighting Terrorism anid Poverty W O RLD B AN K IN ST IT UT E P Vn$c :X UiZ Og s1CV' fc..lU}C1 fo S o _ * Editorial Board S E P T E M B F R I I lent a new focus to the SWAMINATHAN S. AIYAR WorldBank's efforts at poverty reduction. With ECONOMIC TIMES OF INDIA, NEW DELHI, INDIA repercussions from the terrorists' attacks MICHAEL COHEN affecting growth in developing countries, World Bank NEW SCHOOL UNIVERSITY, NEW YORK, USA presidentJames D.`61olfensohn calls in a special report PAUL COLLIER inthisissueforarededicationoftheinstitutiontoward THE WORLD BANK, VASHINGTON, DC, USA eradicating povecry, promoting inclusion and social JOHN GAGE justice and bringing the marginalized into the main- SUN MICROSYSTEMS, PALO ALTO, CALIFORNIA, USA stream of the global economy and society." JOSEPH K. INGRAM THE WORLD BANK, SARA3EVO, BOSNIA WITH 'IHIS RENEWEI) COMMITMENT. the Bank's KWAME KARIKARI SCHOOL OF JOURNALISM AND COMMUNICATIONS, work on bridging thc divide betw ccn the world's THE UNIVERSITY OF GHANA, LEGON, GHANA "haves" and "have nots" becomes even more timely. VIRA NANIVSKA On the cutting edge of this work is the concept of the INTERNATIONAL CENTER FOR POLICY STUDIES, KIEV, UKRAINE "knowledge economy." as presented bv our guest PEPI PATRON editor, Carl Dahlman, Wl/at exactly is the 'knowl CATHOLIC UNIVERSITY, LIMA, PERU edge economy?" The term goes beyond technologi J. ROBERT S. PRICHARD cal advances that are linking the wxorld ever more UNIVERSITY OF TORONTO, CANADA closelv, to focus on knouledge and its creation-as RAFAEL RANGEL SOSTMANN an economic product vital to a country s well being. MONTERREY TECH UNIVERSITY SYSTEM, MONTERREY, MEXICO In OECD countries. this product is nmeasured as ADELE SIMMONS public and private spending on higher education, CHICAGO METROPOLIS, CHICAGO, IL, USA research and developmxent and investment in soft- VIVIENNE WEE ware. Expenditur es on these activities in developed CENTRE FOR ENVIRONMENT, GENDER AND DEVELOPMENT. SINGAPORE countries are dramatically higher than those in the countrig are ramaticlly hiher tha thosein theDevelopment OUTREACH is published quarterly by the World Bank developing world. Dahiman argues that developing Institute and retlects issues arising from the World Bank's many countries need to focus on forming comprehensive learning programs. Articles are solicited that offer a range of viewpoints from a variety of authors worldwide and do not represent strategies to take advantage of the knowledge econo- official positions of the World Bank or the views of its management. my. This means not only creating more knowledge, but putting it to productive use to improve its social MARY MCNEIL and economic impact. \N ithout such forw ard -look EDITOR ing strategies, countries will continue to fall behind ANNA LAWTON in the twenty first century. ASSOCIATE EDITOR CARL J. DAHLMAN IN THIS lSSU E, we also lookatthe process oftechni GUEST EDITOR cal assistance and capacitv buildingwxithin the devel- BRIAN NOYES opment conmmunity, queslioningxxhether we actual PUBLICATION DESIGN ly "do the right things." Eveline Herfkens, minister PHOTO CREDITS Cover: Agence France Press/Vanderlei Almeida; Page for Dexelopieur Cooperaion of the etherlands,4: Reuters Photo Archive/Chien-M:n Chung; Page 6: Agence France for Developm-nent Cooperation of the Netherlands, Press/Indran I Mukherjee; Page 9: Getty Photo Archive/Evans; Page boldly points out that. the dev elopment community as 16: MIT; Page 17: Getty Photo Archive/Peter Rogers; Page 19: Agence France Press/Arko Datta; Page 22-23: The World Bank; Page 25: a wxhole needs to look bevond husiness as Lisual. Agence France Press/Gabriela Gamini; Page 29: The World Bank; Page 31: Agence France Press/Pedro Ugarte; Page 35: The World Bank; Page 36: UNIFEM, < g ' /;) ISSN 1020-797X 2001 The World Bank Institute W WOR LD BA N K I N ST I TUT E XMarv McNeil ~, P., ;' ''. E LI I T i Ri World Bank Institute www.worldbank.org/wbi The World Bank www.worldbank.org/devoutreach 1818 H Street NW devoutreach@worldbank.org Washington, DC 20433, USA M THE WORLD BANK D EVELOP 1\1 ENT V 0 L U M E T H R E E N U M B E R T H R EE k F A L L 2 0 0 1 2 Fight Terrorism aind Poverty 19 'The Indian Innovation System JAMES D. WOLFENSOHN RAGUNATH A. MASHELKAR Because of the terrorist attacks, growth in developing countr es Innovation is the key to the production as well as the wil falter, pushing milhons more nto poverty. Our goal must processing of knowledge. be to eradicate poverty, while fighting terrorism. 22 Nlapping Progress on the Road SPECIAL REPORT: THE KNOWLEDGE ECONOMY to the Knowledge Economy Brazil, China and India 6 Updating the Economic Incentive ANUJA ADHAR UTZ and Institutional Reginnie for the Knowledge-driven development has recently emerged as an an wlenstdtutEonal .e,ime for the important engine of growth and poverty reduction. lKnovledge Economy CARL J. DAHLMAN 25 Supportin0 the Privatc Sector Some key elements are necessary to stimulate the use and the creation of knowledge: rule of law, competitive regime, AFSHIN MOLAVI efficiency of the financial systems. labor markets, social safety International Finance Corporation investments help the private nets, transparency in government. sector mr developing countr es to create a dynamic information infrastructure. 9 Human Capacity Buildin-, for the New Economy FEATURES SHENG MAN ZHANG 28 Can \NVe Do the Rlight Things? The new economy will benefit nations in proportion to their I F o success in building human capac ty. adhe Future oBuldechngal Assistance and Capacity Builkling I3 'h e UTniversitv is Responsible for EVELINE HERFKENS Deelpmnt Chlene ndSluin Effective institutional development requires a radical break D)evelopment: Challcnges and Sioltitions with outmoded practices. in Latin America XABIER GOROSTIAGA In order to confront the challenges of the 21st century, the 3I Africa's Business Gets Insurane university must redefine its objectives to achieve professional Against Political Risks training, a better quality of life, and the redemption of what JAIRO OUMA JURA is public. The newly established African Trade Insurance Agency seeks to develop trade and investment in Africa by offering guarantees 14 OpenCourseNVYare against political risks in business transactions. CHARLES VEST OpenCourseWare is built on the belief that the most powerful, 34 VOICES FROM THE FIELD transformative force on earth may wel be education. First-hand insight into the issues of development and a window for global interaction 17 New Information InfrastruLctture: A Knowledge Booster 36 WHAT OUR READERS THINK PAULI HEIKKILA New initiatives are needed to give more people quality 37 KNOWLEDGE RESOURCES access to the knowledge and information that are available Electronic tools that facilitate the sharing of knowledge on the Internet. 38 BOOKSHELF 40 CALENDAR OF EVENTS F7ight Terrorism BY JAMES D. WOLFENSOHN THE HORRIFYING EVENTS of September iith have made this, for many, a time of reflection on how to make the world a better and safer place. The international community has already moved strongly to do so, by confronting terrorism directly and increasing security. We have also seen real collaboration aimed at averting global recession. These are signs of a rising cooperative spirit-seeking international responses to international problems. But we must go one step further. The greatest long-term t Take the example of the Nile Basin Initiative. It is no secret challenge for the world community in building a better that water shortages pose a challenge to development and world is that of fighting povertv and promoting inclusion peace in North Africa and the Middle East. The initiative is worldwide. This is even more imperative now, when we a coming-together of the ten countries of the Nile River know that because of the terrorist attacks, growth in devel- Basin, providing a vehicle for cooperation on a program of oping countries will falter. pushing millions more into sustainable water use and development. This is a good poverty and causing tens of thousands of children to die example of multilateral action to prevent conflict and to from malnutrition, disease and deprivation. work directly for poverty reduction. Poverty in itself does not immediately and directlv Equally important, we can help peace set down roots in lead to conflict, let alone to terrorism. Rather than societies just emerging from conflict. For example in responding to deprivation by lashing out at others. the Bosnia, where international support is helping communi- vast majority of poor people worldwide devote their ener ties come together at the local level on small-scale proj- gy to the day-in, day out struggle to secure income, food ects, creating jobs, and bridging ethnic differences and opportunities for their children. Or in post-conflict societies like East Timor and And yet we know that exclusion can breed violent con Rwanda-where the international conmmunity is helping to flict. Careful research tells us that civil wars have often rebuild infrastructure, reintegrate soldiers into the socie- resulted not so much from ethnic diversity-the usual ty and workforce. and restore the capacit of governments scapegoat as from a mix of factors, of which, it must be to manage their economies. Success may take years of recognized, poverty is a central ingredient. And conflict- hard work, but the alternative is a never-ending cycle of ridden countries in turn become safe havens for terrorists. violence. Our common goal must be to eradicate poverty, to pro- Central to conflict prevention and peace building must mote inclusion and social justice, to bring the marginalized be strategies for promoting social cohesion and inclusion. into the mainstream of the global economy and society. Inclusion means ensuring that all have opportunities for We can do this through steps that help prevent conflicts. * gainful employment, and that societies avoid wide income 2 Development Outreach WoI l) IA\ K I\511I tI F afnd Poverty inequalities that can threaten social stability. Rlit inclsion t ist attacks. We cannot let Africa fall off the map as we turn goes well beyond incomes. It also means seeing that poor our attention elsewhere. people have access to education, health care, and basic Second, reduce trade barriers. The WTO summit must services such as clean water, sanitation and power. It go ahead, and it must be a development round, one that is means enabling people to participate in key decisions that motivated primarily by a desire to use trade as a tool for affect their lives. That is what we mean by empowerment. poverty reduction and development. Substantial trade lib- But can we really make progress against poverty? Recent eralization would be worth tens of billions of dollars to history tells us that we can. After increasing steadily for poor countries, and yet we know that at times of economic 2oo years. the total number of people living in poverty downturn there are increased pressures for protectionism. worldwide started to fall i5 or 20 years ago. Over twenty We must fight these pressures. years. the number of poor people has fallen by perhaps soo Third, focus development assistance to ensure good million, even as the global population grew by i.6 billion. results. This means improving the climate for investment, This has been a direct result of the hetter policies that productivity, growth. and jobs; and empowering and developing countries have been putting in place. investing in poor people so that they can fully participate in And progress extends well beyond income measures, growth. Education and health have also improved. Since 197o. the And fourth, act internationally on global issues. This proportion of those in the developingworld who are illiter- includes confronting terrorism and internationalized crime ate has fallen sharply, from 47 percent to 25 percent: and and money laundering, but also combating communicable since 1960. life expectancy has risen from 4,5 to 64, years. diseases like AIDS and malaria, building an equitable global Yet we must not underestimate the challenges that trading system, safeguarding financial stability to prevent remain. Half the developing world-some 2 billion peo- deep and sudden crises, and safeguarding the natural ple-live in countries that have seen little growth in the last resources and environment on which so many poor people two decades. And even in those developing countries ihat depend for their livelihoods. have been doing relatively well, hundreds of millions of And all this we must do with developing countries in the people are marginal to the progress of growth. As a result, driving seat-designing their own programs and making well over 1 billion people. around ?o percent of the popu- their own choices. lation of this planet. live on less than $i a day. But we must also bring in the private sector, civil socie- And the scale of the challenge is not only immense. but ty. faith-based groups, and international and national rising. In the next thirty years the population of the world donors. Ours must be a global coalition to fight terrorism, will increase from 6 to 8 billion. Virtually all those 2 billion yes, but also to fight poverty. will be in the poor countries of the world. Whether we take up that challenge is up to us. Some In the wake of the tragedy of September 1ith. facing generations have had the courage. Others have turned these challenges. and taking multilateral action to meet away. Our parents and grandparents responded to the them. are more important than ever. What should be our unspeakable horrors of the Second World War not by with- agenda? drawing. but by coming together to build an international First, scale up foreign aid. This may be much harder in system. By contrast. the choices taken after the First World an international economy that is slowing, but the needs War led to calamity. Which course we choose will deter- and the stakes were never greater. Aid to Africa fell from mine not just our future. but whether our children and $36 per person in 1ggo to $2o today. And yet it is Africa. a grandchildren can live in peace. continent that today is making great efforts to improve. that may feel most sharply the poverty fallout of the terror- James D. Wolfensohn is president of The World Bank. I A I I ' ( () 3 :AX~~~~~tty~r aXi ~~ X-S :: S taki 0 d ut0;: rS '423tt 4 f :X 1: U)11ItOItLQ The Knowwledg T I HERE IS MUCH INTEBEST in the "knowledge economy" although this term is used to denote different things. Whatever the term, it is clear that we are in the midst of an era of unprece- dented advances in science and technology that are having a dramatic impact on economic and social activities. These advances are not only taking place in the realm of information and com- munication technologies, where perhaps some of the progress is most readily visible. but also in biotechnology. health. medicine. new materials, and in many other traditional fields. One of the main implications of the advances in knowledge is that we are in a context of continu- ous restructuring, at the national, regional, sectoral, firm and organizational levels. Developing coun- tries face a risk of a growing knowledge divide with respect to developed countries on two counts. First, they invest much less on the production of knowledge. In OECD countries investments in knowledge, measured as public and private spending on higher education, expenditure on research and development, and investment in software, average about S percent of GDP. In less developed countries this investment averages about i percent. Second, developing countries are also at a disad- vantage because the institutional infrastructure. such as efficient and flexible financial. labor, infor- mation and education markets. and social safety nets that facilitate continuous restructuring, are not sufficiently developed to allow them to take advantage of the new possibilities to improve their eco- nomic performance and social welfare. It is not just that they need to produce more knowledge, but, more importantly. that they make effective use of relevant knowledge wherever it is produced. Developing countries therefore have to develop comprehensive strategies to take advantage of the knowledge economy, which incltudes investing more in education and the information and commu- nications infrastructure. This more comprehensive strategy needs to address four key areas which are covered in this special report: * An economic and institutional regime that provides incentives for the efficient use of existing and new knowledge and the flourishing of entrepreneurship (see the article by Dahlman); * An educated and skilled population to create, share, and use knowledge well (see articles by Zhang and Gorostiaga); * A dynamic information infrastructure to facilitate the effective communication, dissemination and processing of information (see articles by Vest and Heikkila); and * An efficient innovation system of firms, research centers, universities. consultants. and other organizations to tap into the gTowing stock of global knowledge, assimilate and adapt it to local needs. and create new, technology (see article by Mashelkar). The article by Molavi summarizes some of the new initiatives that the International Finance Corporation is taking to help countries take advantage of the knowledge economy. The article byAdhar Utz summarizes a benchmarking tool that developing countries are beginning to use to assess their prepar-edness for the knowledge economy, and a progiam to help policy makers develop the more com- prehensive strategies that are necessary. Carl J. Dahlman. G U E S T E D I V 0 B - [ ) m I _1*| I l I lI 1 ii I Updating the Economic Incentive and Institutional Regime for the Knowledge Economy BY CARL J. DAHLMAN ture of an economy. This article focuses on some of the key elements of the economic and institutional regime that are ECAUSE OF THE RAPID ADVANCE in the creation and necessary to stimulate the effective use of knowledge as well as dissemination of knowledge we are in the midst of what its creation. These include the rule of law, the competitive B could be called a knowledge revolution. But more regime, the efficiency and flexibility of the financial system knowledge by itself will not have an economic and social (including venture capital). labor markets, adequacy of social impact unless it is put to productive use. With the rapid safety nets, and, finally. some elements of transparency and advances in information and communication technology it accountability in governance. would not be difficult to connect developing countries to all the knowledge in the libraries of the world. However, just hav- Rule of law ing access to knowledge will not change much, unless people, firms, and organizations have the incentive and the capability THE WAY PEOPLE obtain relevant knowledge and the incen- to put that knowledge to effective use. A large part of that tives to gather. provide and use it are affected by the institu- capability has to do with people's education and skills But a tional structure of a society These interactions involve rela- larger part has to do with the incentive and institutional struc- tionships between the legal rules and procedures, social con- 6 6 Deeomn Ourac ORDBNKI, 11 1 THE WAY PEOPLE OBTAIN KNOWLEDGE AND THE INCENTIVES TO GATHER, PROVIDE AND USE IT ARE AFFECTED BY THE INSTITUTIONAL STRUCTURE OF A SOCIETY. ventions. and organizations such as firms, government and An argument can be made that thev should receive preferen- non-government organizations and markets. If people exert tial treatment in the enforcement of patent rights. For some an extra effort to set up a new enterprise or to provide a serv- middle income countries with strong capabilities to generate ice more efficiently. thev need to have some reasonable knowledge, the situation is more complicated because they assurance that they will be able to benefit from the fruits of have an incentive to protect their own technical (patent) and that extra effort, rather than to have it arbitrarilv seized bh literarv or cultural knowledge (for example India, China, and the government or others. There has to be some reasonable Brazil, which have strong technical innovation capabilities as certainty about the private propertv and the enforceability of well as thriving film and literary industries). Thus. they have a commercial contracts. Therefore. a clear rule of law that greater need to put in place stronger intellectual property respects individual and commercial rights and that is rights. In addition, strong intellectual propertv right protec- enforced consistently and fairlv is a very important prerequi tion is usually one of the prerequisites that foreign investors site to promote the more effective use of knowledge. This is want to see in a country before they are willinig to transfer their particularly important for the successful development of most competitive technologies. Therefore, countries thal small and medium enterprises, which are usuallv at a disad want to access that technology have to put in placc stronger vantage compared to large enterprises that often receive protection. This seems to be an inevitable trend. However, it privileged treatment in getting through government red tape can be argued that appropriate mechanisms should be devel and accessing finance. Promoting the creative energy and oped to help poorer developing countries to buy or get prefer- enterpreneurship of people is a critical element of develop- ential access to patented technology in areas of great social ing a knowledge economy as the> typically get their start as need such as treatment for aids, and that special global efforts small firms trying out new ideas, even if only a minority are should be made to develop technologies that are particularly new knowledge-based start ups. relevant to their needs. such as vaccine against mnalaria or other endemic diseases mostly prevalent in poor countries. It Intellectual property rights is also important to protect indigenous knowledge against appropriation and patenting by foreign companies, and to AN ABEA I NDER THE RL LE CIF LAW that requires specific develop appropriate mechanisms to compensate the original discussion in the context of the knowledge economv is the owners of that knowledge "hen it is industrialized. protection of intellectual property rights. This is a particular- ly complex and difficult area. The basic rationale is that it is Competition necessary to give intellectual property rights over the creation of new knowledge to those who exert the effort to produce it. C'OMPETITION IS CRITtICAL to stimulate the creation as well in order to provide an incentive to undertake the effort. These as the effective use of knowledge because these require the rights include patents. trademarks, trade secrets and copy- exertion of effort and resources. Without competition there rights. Patents give protection for novel technical inventions would not be a drive to improve performanice. Some of the key to the creator for a period of twenty years. Trade secrets pro elements to foster competition are openness to international tect intellectual propertythat is not patented but is kept secret trade as well as pushing firms to export. so that they are forced by the firm. Copyrights give protection for 5o years over liter- to keep up with newtechnologies and to improve the quality of ary or artistic works. On the other hand, from a social per- goods and services to world standards. However, beyond spective it is desirable to disseminate knowledge at zero or openness to trade it is also important to put into place proac- marginal cost to as many users as possible so that they benefit tive competition regulatory authorities. Market-supporting from it. This is because knowledge is not exhausted by its use. institutions such as fair trade and anti-monopoly commis- unlike typical commodities. There is. thus, an inherent ten- sions are important to maintain competition among domestic sion between the need to provide propeity riglhts to provide an monopolies as well as to protect against large foreign compa- incentive for the creation of new knowledge and the desirabil nies that may enter the domestic market. Small and medium ity of disseminating it a marginal cost. The time limitations enterprises and independent start- Ips, wlhich are critical for granted by patents and copyrights are an attempt to balance the knowledge economy are particularly vulnerable to preda- those considerations. However this is an imperfect balance. tory behavior by large firms. Moreover, since most of the new technical knowledge is being produced by advanced countries. granting stronger Openness to international trade protection to intellectual property means that developing countries, who are primarily users of knowledge, end up TIIIS IS IM PORTANT not only because of the pressure it puts transferring rents to the producers. Therefore, the trend on domestic producers to improve performance. but also towards strengthening intellectual property rights is hurting because in the context of the very rapid expansion of global poorer countries with little innovative capability of their own. * knowledge it is critical to get access to many new products and I A I'IO(J , AN EFFICIENT AND FLEXIBLE FINANCIAL SYSTEM INCLUDES NOT ONLY BANKS, BUT FINANCIAL MARKETS THAT CAN RESPOND MORE QUICKLY TO CHANGING OPPORTUNITIES. services which may not even exist in the local environment. * implications for the formal educational system. The formal Even large developing economies such as China and India. educational system has to provide its graduates, at whatever which have large research infrastructure and hundreds of level, with the basic skills to be able to continue to learn thousands of scientists and engineers engaged in research and throughout their lifetime as the needs of the work environ- development. account for less than one percent each of the ment change. It also means that efficient training mecha- global R&D effort. Therefore it is critical to access global nisms have to be put in place to provide the specific new skills knowledge through the import of goods and services that that are requiredbyworkerswho are laid off and have to retool embody some of that knowledge. through direct foreign themselves for new opportunities. However, it is clear that investment, technology licensing, foreign study and work, with the wrenching restructuring that occurs as part of the foreign technical literature and, increasingly, through elec- redeployment of resources to new opportunities, there will be tronic means and direct access to research and databases on many workers who are not able to adjust to the new require- the Internet. ments. Thus. appropriate social safety nets in terms of mini- mum incomes and social services must be set up to help these Financial markets workers and their families who otherwise may be falling betvween the cracks. THE FINANCIAL SYSTEM and the key institutions and rules that regulate it are the "brains" of a knowledge-based econo- Governance and accountabilitv my because they process information to allocate scarce capital to the most productive use. This is particularly important FINALLY, at a broader institutional level. better governance when there are so many new technologies that are creating mechanisms will have to be established to cope with the new opportunities and making a lot of existing production demands for constant restructuring, redeployment and outmoded, if not obsolete. The financial system has to contin- adjustment, which this dynamic process places on the rules of uously reallocate capital from declining sectors to promising the game and the role of accountability of government, both at new sectors. This means that there must also be efficient sys- the national and the international level. This means not only tems for dealing with failed enterprises through expeditious better communication and coordination within different bankruptcy procedures as well as to identify promising new parts of government, in how it procures goods and services. It enterprises. An efficient and flexible financial system also means accountabilityto the citizens for all the hard choic- includes not only banks, but financial markets that can es that have to be made. In addition, with the rapid advance respond more quickly to changing opportunities. In addition, and diffusion of communications and information technolo- bankers are quite conservative and only lend to enterprises gy, and knowledge, there is a risk of a growing knowledge with a track record who have assets that can serve as collater- divide between those with education and access to ICT tech- al. Therefore, they are not appropriate for financing new nologies and complementary assets, and those, mostly rural, start-ups, knowledge-based enterprises that do not have a less educated persons, who do not have access. Therefore gov- track letter or tangible assets, but which are at the very heart of ernments will have to take strong proactive steps to deal with the knowledge economy. This requires the development of a the problems that arise from the risk of the growing divide, in venture capital industry with the necessary expertise to judge order to prevent internal inequality and the risk of social the prospects of these new ideas, and the willingness to put up breakdown. risk capital to partner with the technical entrepreneurs and help them develop their business plans, launch, and scale up THIS HAS BEEN A QUICK SUMMARY of some of the key ele- the enterprises. However, this requires venture capitalists ments of the economic and institutional regime that must be with the expertise to assess the potential value of new ideas, a taken into account in developing effective strategies to take legal regime that is sufficiently robust to enforce contracts on advantage of the knowledge economy. The main message is future payoffs, and a well developed capital market that allows that developing an effective strategy in not just a matter or the venture capitalists to eventually sell their stakes on the investing in R&D of the new information infrastructure, or stock market. and recycle capital to take risks with new firms. even just investing in education. Rather, it is important to also improve the broader economic and institutional context in Labor markets and social safetv nets which this is taking place, to ensure that there are appropriate I incentives and institutions to stimulate people to exploit these LABOR MARKETS MUST BE FLEXIBLE to re-deploy workers opportunities, and to deal with the restructuring and other out of declining industries to growth industries. This means problems that are part of rapid change. that there must be good labor market information as well as mechanisms for facilitating the retraining of labor, so that the Carl J. Dahiman is program manager of Knowledge for Development, workers will have the skills required in the new jobs. This has * the World Bank Institute. 8 Development Outrcach wrco 1, lI AN I\ [\>S ' I U: 4 / 7 HUMAN CAPACITY BUILDING FOR THE NEW ECONOMY BY SHENGMAN ZHANG OVER THE NEXT QUARTER CENTURY, an additional two billion people will be added to our planet. Whether a large population represents an asset or a setback to progress depends, above all, on whether people will have the capacity to shape their future. The new economy offers unprece- dented opportunities. But the gains will not be automatic. It will benefit nations in proportion to their success in building human capacity. Capacity building spans investments in education in schools and univer- sities, as well as formal and informal training for youth and adults. Here, I will discuss the new opportunities and risks in capacity building which face us in today's world. A I ~~~9 Unprecedented opportunities t changes in education: not just more education, but substan- tially different education. Beyond the mastery of basic subject tHE NEW ECONOMY, Knowledge Economy, Information matter, numeracy, and literacy, success in the new economy Society-these are a few of the terms people use to denote the requires behavioral skills such as the ability to think critical- new global order. Whatever the term one uses, it is clear that we ly, communicate well. and work effectively in teams. are in a period of dramatic change. Advances in information Creativity. risk-taking, entrepreneurship, flexibility in the technology and knowledge dissemination are transforming the face of change-are increasingly important. Computer litera - landscape of the global economy. Examples of change are all cy, too, has become a core competency. around us. Over the last quarter of a century. for instance, the Over the past two decades, the skills needed to succeed have cost of i MHZ of processing power has fallen from some $7,5oo changed radically, but not the skills taught in schools. In coun- dollars to 20 cents, And the cost of sending i trillion bits has tries at all levels of income there is a mismatch between the fallen from $i5o,ooo dollars to io cents. As someone skills of secondary school graduates and the needs oftechnol- observed. what all this means is that IT and the Internet today ogy-driven employers. An OECD report found that one out of can amplify brain power in the same way that the technologies every four adults in advanced countries failed to reach mini- of the industrial revolution amplified muscle power. mum literacy levels for coping with today's life and work. Some This revolution is opening new possibilities in at least three have low literacy skills despite high levels of education. ways. First, the new order is allowing a leapfrogging over old Learning in schools is important but not sufficient. Policies for technologies. For example. cellular phone technology is now | the workplace and family settings are needed, and employers viable for villages and poor neighborhoods that have never role in promoting literacy skills is critical. Above all, education been wired for traditional phones. The number of mobile lines now needs to prepare workers for lifelong learning-much of it is already larger than the number of fixed lines in Hong Kong informal-so that they can continuously upgrade their skills. (China) and Korea. In fact, the number of mobile phones per The new economy thus calls for an education system that is thousand people is larger in Hong Kong (636) and Korea (500) attuned to the needs of firms, sufficiently flexible to adapt to than in the United States (3i2) or Canada (226). Second, new changing demands, and encourages lifelong learning. technologies are providing links to global knowledge recorded Beyond education, the institutional dimensions of the new electronically. Technical advances have made it easier to find economy are also vital. To make the most of its human capacity, a knowledge. just -in-time to solve problems. Third, IT is drasti- country needs an efficient innovation system of firms, research cally improving access to quality education, through computer- centers, universities, and think tanks. It also needs a strong THE NEW ECONOMY CALLS FOR AN EDUCATION SYSTEM THAT IS ATTUNED TO THE NEEDS OF FIRMS, SUFFICIENTLY FLEXILE TO ADAPT TO CHANGING DEMANDS, AND ENCOURAGES LIFELONG LEARNING. assisted learningand Internet-based distance learning. China, national information infrastructure that facilitates effective for example, has already trained more than two million college communication, dissemination, and processing of information. students through radio and television education. But these new opportunities have also raised the stakes. Challenges and risks Technical progress is shrinking the world to a global village. This makes us more interdependent and also subject to THBOUGHOUT HISTORY. the success of economies has been greater competition and new imperatives. What are some of based on knowledge. What is different today is that knowledge these imperatives- for people, businesses and countries? is becoming the most important factor for competitiveness First, they are pressed to find competitive advantages. Investors and social welfare. This poses new challenges which may not are increasingly seeking first-mover advantages: new products always be easy to recognize. and services, in response to customers' diverse, fast-changing demands; speed to market: and access to customers and sources A COUNTRY'S PREPAREDNESS The results of studies conduct- of information. Second, they face the need to restructure. The rapid ed at the World Bank show great contrasts in the preparedness development of IT is pushing down prices and exposing ineffi- of countries across regions, from East Asia to SouthAsia. from ciencies of firms and institutions. Third, they find investments in LatinAmericato Sub SaharanAfrica. TheAPEC (Asia Pacific people a greater priority than ever. This is especially because com- Economic Cooperation) members in general show consider- petitiveness of people and societies now depends on their skills. able advantages in basic education. infrastructure. and knowledge, and command of information, growth. But comparing the US and Korea with China and Indonesia, we see large differences in the economic and insti- '[he new educational needs tutional capacity. On the other hand, the literacy rates in China and Indonesia are relatively high for lower income INVESTMENT IN PEOPLE starts with education, but what are countrics. But enrollment rates are low, as are the indicators the new educational needs? Today, the new economy calls for 2 of information technology access. 10 Development Outreaclh WOuAI B ANKIN III I J F Are these differences likely to get larger or smaller? We 4 erating financial resources for human capacity; c) improving think the globalization of trade. finance. and information flows the framework of institutions, policies. and regulations should help all countries. W hat is noteworthy is that IT spend- ing has been growing twice as fast in developing countries as in REFORMING EDUCATION AND CAPACITY BUILDING Reformn of industrial ones over the past decade. But there is also the risk education and human resource policies is a priority for most that the accelerating pace of change may widen the digital divide countries. East Asian countries have a far greater equality in and the knowledge divide. Increasingly, skilled people. invest- basic education compared to those in South Asia, Latin ment capital. and other resources may flow to those countries America and Africa. But knowledge inequalities are large, for with stronger knowledge bases. reinforcing inequality. example across provinces in China. Furthermore, there is substantial scope to improve the quality and relevance of edu- THREE BASIC RISKS Onc risk is of further excludi.ngpeoplc who cation: by focusing on systemic education reform. on-the Job lack the right education. Technical change and organizational training, options for lifelong learning, and gender equity. change are widening the wage gaps between skilled and To be competitive, an education system must be part of a unskilled workers. In the United States over the past go years. human resource strategy. Education must connect citizens to people with the least education have seen their real wages fall. the world economy. through technology to access knowledge: The pain of exclusion will be felt even more strongly in devel- textbooks that meet international standards; computer literacy: oping countries, where access to education and IT is much and distance learning. It should build skills and values: an more uneven. To reduce the risk calls above all for improve- understanding of competitiveniess. rooted in local culture and ments in access to basic education, and increasingly in sec- the environment; the rlde of law: and ethical standards. Human ondary and higher educationi as well. It also calls for labor mar- resource policy needs to start from the premise that all children ket reforms that will permit people to use their skills in an should have access to basic education regardless of their means. increasingjly flexible way. Education reform must also ensure that education spending is The second risk is the braon drain. which occurs when allocated andused efficiently. Mostworkers require on-the-job countries lose the contpetition to retain. reg,ain, or attract training, to keep up with fast-changing needs. Training on the skilled labor. The position that knowledge nowv occupies-as a job is one of the moST important ways that people acquir e skills. key source of comparative advantage-has been speeding up Countries also need to develop effective life-long learning. In the movement of skilled people to places where they can most the Penang area of Malaysia. 24 companies support a center that easily turn knowledge into wealth. The United States is now trains local employees to stay current with the latest technology. EDUCATION MUST CONNECT CITIZENS TO THE WORLD ECONOMY, THROUGH TECHNOLOGY TO ACCESS KNOWLEDGE. attracting mnanv' of the brains of the world for this reason., Countries can reap significant gains by widening the access Since 1979, China has sent 3oouooo students for training in of girls and womeni to education and modern -sector employ- the United States, but only about ioo,ooo have returned. ment. One of the seven International Development Goals Thethird riskis of losing theeompetitionforcapitaline,estonent. focuses specifically on eliminating gender disparities in pri- In the global, competitive economy, capital investment follows mary and secondary education by !oo5. Educating girls yields human resource capacity. Singapore. for example. developed its high returns for both economic growth and social welfare. A highly skilledworkforce withinthe context of a strategyto attract World Bank study shows that an increase of one percentage foreign direct investment in high-technology industries. China point in the proportion of women with secondary education is has had exceptional success in its publicly sponsored high tech- associated with an increase of o.3 percent in national per capi- nology and science zones. where foreign-owned enterprises now ta income. This implies that a country impedes its growth if it account for three fourths of the exports and labor productivitv is fails to provide girls with the same levels of education as boys. twice as high as in the rest of the economy. GENERATING FINANCIAL RESOURCES The needed financial Catching thie fast-moving train investments in human capacity are so large that countries need to broaden the sources of finanice. In most countries. TO CONTAtN THESE RISKS of awideningknowledgegap. and m]ore public spending needs to be directed to educating the ultimatelv an economic and social development gap, govern- poor. concentrating on both primary and secondary school- ments can do a lot to catch the train of the new economy so ing. In higher education, private investment and public-pri- that the digttal divide becomes a dlgital dividend. and the vate partnerships should be encouraged. knowledge divide turns into a knowledge dividend. Based on For example. we note China is using several innovative the successful experiences and our research findings, we ways to leverage public resources. The country is investing in believe the countries and regions may want to act on three distance education using innovative methods and advanced fronts: a)reformingeducationandcapacitybuilding:b)gen- information technologies. lt is funding the underlying IT I iI I 11I infrastructure by allowing the entry of private domestic and + areas from procurement to customs are giving good results in foreign capital and by auctioning rights to lucrative markets. Argentina, Brazil. Chile, and Mexico. Governments can also along with obligations to provide low-cost service to marginal promote greater inclusiveness and participation of the private areas. The country is also tappingprvwate resources: one third of sector, the civil society and others to get the most from knowl- China's higher education costs are now borne by students, not edge opportunities. the government; and four million students are presently The government's economy-wide policies are also key. studying at privately funded tertiary education institutions. APECmembershave made considerableadvancesinpromoting The country is also developing international alliances in edu- competition through openness to international trade and for- cation. Beijing University alone has relationships with a hun- eign direct investment, and exchange of technology through dred foreign universities. licensing and foreign collaboration. On the other hand, there Given the large diversity in the stage of development of the are also areas for greater stress such as policies for the labor APEC members, there is wide scope for cooperation with var- market that promote continuous upgrading of workers' skills ious dimensions. One isfinancial assistance from the richer to and enhance employment opportunities. especially for women. the poorer economies to help address the knowledge divide. A The stakes are high. People and countries with the capacity to second is technical assistance to improve curriculums, educa- participate in the new economy will reach unparalleled levels of tional programs and institutions. Third, there is ample scope prosperity. But those who lack the right knowledge and skills for cooperation by prniate companies as well as others with will increasingly be left behind, without the ability to improve resources and relevant experience. their living standards, to manage their environment sustain- ably, or to provide a decent start for their children. ;> IMPROVING INSTITUTIONS, POLICIES, AND REGULATIONS Finally, reform of government policies and institutions is key Shengman Zhang is World Bank managing director. This article is to the efficient use of knowledge, capacity and entrepreneur- based on a paper developed for a speech given at the APEC High ship. Governments themselves can promote greater trans- Level Meeting on Human Capacity Building, Beijing, China (May 15, parency and efficiency using technology to their advantage. 2001). The complete text can be seen at: For example, investments in electronic or e-government in www.worldbank.org/wbi/wbikp/news.html II RR International Institute ot Rural Reconstruction 4 Y.C. James Yen Center, S lang, Cavite 4118 Philippines rV O Ex c The International Instrute of Rural Reconstruct on offers short term internat onal l train ng courses designed tor development practitioners and leaders. Our courses Powering better globaI development focus on practical f e d experiences and partic patory approaches. I RR has more ___ than 80 years of rural deveeopment experience ane c one to 40 years of trnte rr-a tonal train ng expernence. IIRR thss trained more than 12,000 total development at practitioners represen: ng rTore than 2,500 government and nion-government I organizations from over 90 nat onso. - Community-based Integrated Watershed Management ,))g'y1 November 26 - De-ember 14, 2001 & November 5 - December 13, 2002 NGO Leadership, Development and Social Change 3 :i:o::::,vaiotiud-trri3ah3hhJ:hP (in no laboration wice toe School for Internet teal Tra ning (SIT) in Vermont, BRAC in Bangladesh, and other NGOs) January 21 to February 2, 2002 Participatory Monitoring and Evaluation February 28 to March 2, 2002 (Pre-session) & March 4 to 22, 2002 (Course) Systems in Community-managed Health May 20 to June 7, 2002 Sustainable Agriculture Training of Trainers Jusne 3 to June 28, 2002 Training Program Development and Management July 8 to 26, 2002 X Rural Development Management August 5 to 30. 2002 Farmer-led Extension October 7 to 25, 2002 De eo m nE .o IIRR also offers regional courses n Africa and customized courses throughout the wor d. We also prov de technical support services. Please visit www.developnlentex.0oM and sign up for For registration or for more information, contact: our free Global Development Briefing, an e-newsletter Education and Training Program read by over 40,000 development professionals. International Institute of Rural Reconstruction Y.C. James Yen Center Also, quickly search detailed business opportunities with Silarig 41 18, Cav te, Prn ipp rnes the World Bank, USAID, ADB, IDB, USTlDA, EU, and more. Telefax: (63-46)4142423 Tel: (63-46)4142417teWolBakUSD,A , D,U DAE,anmre Fax: (63-46) 4142420 And, access more than 5,000 senior consultants, NGOs, Email: Education&Training@iirr.org and firms for international development projects. Website (to be aunched): www.iirr.org 12 Dcvcloprnerit Outreach Wi, 1i ['ANvK IN III 1I The University is Responsible for Sustainable Development Challenges and Solutions in Latin America "The world that we haw7e created to date as a result of'our way of thinking has problems that cannot be soli'ed by continui ing to think in the way uwe thought when we created them." A I,r T EINSTEIN BY XABIER GOROSTIAGA NIVERSITIES HAVE NOT PLAYED a relevant role in the current problems J of Latin America in this era of knowledge. information and communica- tions. In order to confront the challenges of the 2ist Century. the university must red efin e .' its objectives in order to achieve professional training for increased social production. a better quality of life, and the redemption of what is public. ~~~~~~~~~~~~~~~~~~F A ff"I lwr -h.r. Challenges i N 4! ifuifif'if'iifti< THIS UNIVERSITY DEBATE has become more -_0 -' "' F-d,ii( complex due to external factors. International ,if-, fif&iif.ib financial entities have often claimed that the ' , if i,tt"tf, university used up excessive resources from 8 N, the educational budget, while its rate of return was inferior to that of basic education. 'I'his i& . theory generated confrontations within the educational system and inside ministries, with respect to the "fight for the budget." as well as a growing breach between the educational sec tors, the public and the private university. The World Bank and UNESCO paper. Higher Education in Developing Countries Peril and - ._,it,t f Promise. The Task Force on Higher Edcfation and if 1f..i,if, Society (World Bank, nooo). was instrumental in Latin America in reformulating the debate CO N I I N 1 I )11 C, N 1' A CI F 3 3 OpenCourseWare BY CHARLES VEST the hardware to bridge the Digital Divide. But frankly. this technical challenge is the easy part- T M IT, WE SEE THE QUALITY OF OUR SHARED extraordinarily expensive, perhaps, but easv. For us at MIT, human future on earth as a problem to be solved, the real issue was the intellectual one. As increasing numbers a problem massively difficult but massively of people and institutions gain online access, how should all worth the solving, and a great deal of our schol- that technology best be used for education? And especially, arship and research is dedicated to that end. At the same how should it be used to make the most difference for those in time, MIT strives to lead the world not only in delivering greatest need-those parts of the world isolated by geography, but in designing an exceptionally rigorous science-based poverty, or politics? education for exceptional students from around the globe. This spring, those two interests-in world-changing The UJniversal College idea research and world-class teaching-gave birth to a single project we hope may be as significant as any scientific or ONE VISION, popularsincethebirthofthe Internet, isakind technological advance ever to emerge from our labs: MIT of Universal-College-From-Your-Keyboard: take the best OpenCourseWare. professors in the world in each subject. capture their lectures electronically and make them available worldwide. Knowledge for all That idea still has advocates, but it has its limitations. Taken to the extreme of hundreds of thousands of students ON APRIL 4, 2001. MIT announced that it would make virtu- worldwide receiving precisely the same lecture from the ally all of its undergraduate and graduate course materials same professor on a machine is a nightmare in my view. available, free of charge, to anyone, anywhere on earth, Furthermore, it mirrors the model of business-to-con- through the World Wide Web. At the initial press conference, sumer, or B2C, electronic commerce. B2C electronic com one reporter asked, in effect: Why in the world would MIT merce is somewhat interesting and important. But it is busi- professors give away their ideas for free? Wouldn't they be ness-to-business, or B2B, electronic commerce that has concerned about the lost potential for income? A faculty been the trulytransforming influence ofthe Internet inbusi- member on hand gave the simple reply: that for scholars and ness and industry-and we believe the same will be true in teachers, the greatest possible reward is the sense that other education. The direct merchandizing of university courses. people find their ideas important, inspiring, useful-that even interactive ones, will definitely have a role in global their work can indeed change the world. education. But the real power will arise as faculty in colleges In a market-driven universe, where the Internet and the and universities all over the world openly share educational WVorld Wide Web are increasingly seen as vehicles for making materials with each other. money, MIT OpenCourseWare seems counterintuitive. But as It is that intellectual revolution we hope MIT any scientist can tell you, the most exciting new ideas usually OpenCourseWare will ignite. The material made available will do. OpenCoursecWare emerged as the surprising result of an include detailed lecture notes, course outlines, reading lists, intensive faculty and staff effort to decide what major initia- problem sets, essay topics, simulations, and demonstrations. tive MIT should undertake in the evolving field of "distance Having access to those resources will not mean that users will learning." Eventually, we came to see the great pedagogical be able to earn an MIT degree online, or even academic cred- challenge of the moment as this: to define what the "Internet it; OpenCourseWare is not an attempt at interactive distance revolution" will mean, and should mean, for higher learning learning. on this planet. But it will mean that educators and students around the We are faced, of course, with the stark fact that even now world will be able to select whatever pieces interest them, add only five percent of the world's population has access to com- their own flavor, and shape them for use in the context of their puters and the Internet. Obviously, to make the conversation own research, curriculum, culture, and goals. It will mean that r elevant for the vast majority of humanity. a critical priority the cumulative wisdom of our faculty-not just as scholars. but must be to provide much more access for many more people as expert teachers-will be available to help other educators around the globe. Government, industry, academia, and non- instruct and inspire their own students. And it will mean that governmental organizations must together find the will and X as new knowledge and educational content emerge, we can 14 Dcvelopment Outreach WO R 1, I) IIANK IN. ri II Fr t 4>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 x~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~K sv~~~~~~~~~~~~~~~~~~~~~~~~~~~f A hJ-~~~~~~~~~~~~~~~~~~~~~~~~~~ disseminate them around the world instantly-a key step t Especially encouraging, of course, has been the indispen- toward closing the gap between the information "haves" and sable and generous support of the Andrew W Mellon , "have-nots." Foundation and the William and Flora HewleTt Foundation. It is no secret that university faculty have always shared who together will fund the project's crucial start up and pilot such materials informally with a few colleagues and former phase. Their combined grant of $11 million-$5.5 million students at similar institutions. Now we must do this in a from each will allow MIT to roll out the first edition of globally open manner and with the speed of 'Internet time." OpenCourseWare in Fall 2002. nith the goal of making mate- Together, the creators and its users of these materials will rials from more than 500 courses available within the follow- weave a new worldwide web of knowledge and learning that ing year. Experience gained from the first phase will help will complement and stimulate innovation in ways we cannot determine the costs and challenges of the second phase. even imagine today. expected to take six vears more. A worldwide intellectual network The way of the future WE CERTAIN LY HOPE MIT OpenCourseWare will be of use to WITH THE INITIATIVE NOW seriouslyunderway,wearenat- individuals from the precocious high school senior studying oirally looking to the future, and to our final great vision for the biologv in Singapore, to the city project. that other institutions planner battling sprawl in will be willing and able to throw NMadrid (and even to the MIT open their intellectual doorways student in bed with the flu and as nell-that OpenCourseWare unable to make it to class!). But will be a beautifully contagious the truth is that most learning, idea. "Our hope," said Paul especially within colleges and Brest, president of the Hewlett universities, will remain a Foundation, "is that this project deeply human activity, built on v will inspire similar efforts at an ancient model of mentorT other institutions and will rein- ship and dialogue. Information force the concept that ideas are technology' will enhance the best viened as the common role of the teacher. but it will property of all of us, not as pro never supplant it. And anyone prietary products intended to who has everbeen to college can generate profits." attest that what they learned, MIT OpenCourseWare mav they learned in part-perhaps in go against the grain of today's large part-from their fellow W dominant market values. But it students. Those are dimensions is a great celebration of the no amount of "information" democratizing openness and alone can replace. opportunity inherent in the So again, following the MIT PRESIDENT CHARLES VEST Internet and the Web. And it is "BzB" and open system mod a perfect expression of the core els. our true audience is not values and traditions of MIT primarily individual students, ONE VISION, POPULAR and of all the world's finest but rather our global col- CE THE BIRTH OF THE institutions of higher learning. leagues in education-from OpenCourseWare is built on the faculty members launching a INTERNET, IS A KIND OF belief that the most powerful, new engineering university in transformative force on earth Ghana to a professor in Rio UNIVERSAL-COLLEGE- may wellbe education, that the seeking better nays to convey soul of education and human the deep mysteries of eco FROM-YOUR-KEYBOARD development is the free and nomics. The real power of open sharing of information, OpenCourseWare will come in philosophy and m-odes of the wats it allows us to share thought, and that the perma our strength with other faculties and institutions. Our nent challenge of educators is to widen the world's access to excitement about the potential of OpenCourselare has information and ideas and encourage others to do the same. been reflected in the support we have received worldwide. As we open our own electronic doorways, we look out on the Since the announcement in April, we have received literal dawning with tremendous hope. h, ly thousands of messages of support and enthusiasm from around the globe. * Charles Vest is MIT president. Visit: http://web.mit.edu/ocw T6 Dexvelopmciit OLItreach WO i P x AN K IN; SII tI 11 - New Information A KNOWLEDGE BOOSTER BY PAULI HEIKKILA Technology, liberalization and globalization M AN IIAS MADE remarkabletechnologicaladvances. IHF MAIN FACIOR enablingthisrapiddevelopmenthasbeen 'which have affccted not only industry and con- technology. driven forward by microelectronics and telecom =t 4 merce, but the whole of our society and our daily munications, which double their performance at regular lives. Duringthe last few decades, the progress in information intervals. It is expected that this exponential growth of pro and communications technologies has been revolutionary. cessing power and transmission speed will continue for at 'with the explosive grouwth of mobile telephony and the * least a decade-or even more. Internet in the 199os. In an However. technology cannot amiazingly, shurt time. 'we have be developed or fully put to use seen the industrialized world go unless the educational, legal, and through a metamorphosis. business environment supports Technology based products and - it. In most countries, the state computerized production used to maintain tight control of processes have become parts of the media and telecommunica almost all aspects of business. tions. It is obvious that the relax- work, and leisure. It is now pos- ing of this control in favor of sible lo find valuable sources of competition and free exchange information and to contact of information has been one of friends and colleagues all over the main factors driving the fast the 'world in real time, development in information and The new applications and commuliunicatioin technologies. uiseful services can be imple- On the other hand, the gov- mented. once all the new techl erinment has nowadays acquired nologies are fully taken advari an important role for setting the tage of, and when niany more rules for on line securitv and people have access to the net 'AO privacy. Todav, the competence works. However, the future mav - . r of national law is becoming be as unpredictable as the past. '/,/_.,1 . / , ' blurred, as a result of globaliza- Progress is being hindered by a - tion and technological conver- number of obstacles. and the gence. This creates an urgent coverage of the networks is still need for international coopera- far from being truly global. The _ tion in order both to reap goal of this article is to analyze = * J rewards from development and the situation more closely, aind also to be able to fight its dark also to propose new approachies. 11 MIAside: viruses, hacking, and the I A 'II 01 1 I7 controversial question of offensive or illegal content. 'What research, safety. a stable legal environment etc. used to be local regulation therefore needs to be gradually The roots of the Internet are in military research, initiated replaced by international agreements, enablingthe Internet to to ensure that computers would survive a nuclear attack. The be used for disseminatioii and sharing of knowledge even more Internet protocols were mosily developed in universities and effectively and globally. other public institutions, including the NVW, which evolved from a system meant for physicists to share information. Know the past, know the future? Since the late t980s or early 199os, in many countries all uni- versity students have been given Internet accounts. The back- I F WE TAKE A LOOK at the technology forecast made by any bones that the networks needed were mainly funded by the company or institute in 1986, the predictions about the public sector. Even in 1995, many companies, including development of basic technology-such as microelectron- Microsoft, did not yet really believe in the Internet. But the ics-were just about right, but we will find no real under- seeds had already been sown. In a short time, the Internet standing of what was to happen in the mobile telecommuni- then evolved into the current multimedia extravaganza, now cations business, let alone the Internet. If we go back to being driven by private industry. Yet this would not have been 1991, when the GSM system was introduced in Europe, the possible without the initial investment and role of the public technological understanding was excellent, but few realized sector and universities. the business impact. If we look at the documents of the large European research program ESPRIT at that time, we will Can we extrapolate from here? find practically no references to the word "Internet". But if we look at business forecasis made in the late iggos about THE SIMPLE AND POPULAR extrapolation today is that the growth of on-line business. we will find that they were broadband access will become more and more widespread. seriously exaggerated. An economic bubble had been creat- which will then provide the public with all kinds of on-line ed, and in time, it burst. shopping and entertainment. This is very likely to happen, but The inevitable conclusion is that over the past 15 years, the it is useful to analyze the limitations and to attempt to foresee development of the raw technology has been relatively easy to the risks. 't'he Internet was never designed for the uses it ful- predict. The capabilities in computing and communications fils today. A growing proportion of Internet content and serv- have grown at a known pace. What we were not able to foresee, ices is no longer based on consensual public standards, but has been their usage patterns, and the innovations that change rather on proprietary solutions and file formats, requiring the THE MOST POPULAR INTERNET CONTENT SHOULD BE ACCESSIBLE EVERYWHERE WIRELESSLY AND AT REASONABLE COST. those patterns. On the other hand, usage patterns do not nec- end-user to frequently update or upgrade the terminal soft- essarily change just because the opportunity is there, or ware (and even hardware), and to be wary about security because the stock market believes they should. Relatively sim- issues. ple changes in the interface such as the web browser, the added I believe the next development phase is likely to introduce value of mobility for the voice phone we had used for decades, new and, above all, easier usage patterns, which will enable a and the use of one set of Internet protocols instead of the older normal end-user to enjoy the wealth of the Internet content dedicated telecom protocols-the consequences of all of these more easily and without needing to be a computer enthusiast. quite small changes have surprised us. Gigantic business suc- The most popular content should be accessible everywhere cesses and failures have taken place. Direct extrapolations of wirelessly and at reasonable cost. There is no one single solu- the usage patterns of any given time have been inaccurate. tion to these challenges; several parallel approaches must be Enormous, though yet unseen potential exists in the future explored at the same time. There is one path little traveled yet, development of technology and networks. However, deter- which I would like to propose in the final section of this article. mined work and cooperation will be required in order to make the best out of that potential. Digital versatile broadcasting The role of the public sector BEFORE THE INTERNET ERA. and still today, television and radio programs are transmitted using terrestrial and satellite IT IS EASY TO ASSUME that the development is being driven networks. These networks are mostly unidirectional and thus solely by competition and companies. Where the infrastruc- do not provide very good Internet access methods as such, but ture is already in place, this is indeed the case. However. if we they are extremely cost-effective for broadcasting. What is look back in time, we will realize that the infrastructure would even more important, they exist physically almost everywhere never have come into place without a strong contribution by around the globe. They are still used mainly for analog broad- the public sector, which is responsible for education, basic CON T IN U ED ON PA GE 2 7 it DevelopmentOutreach ''o R;IDANKNS 11LUIF ,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4. BY RAGUNATH A. MASHELKAR INNOVATION IS THE KEY to the production as well as processing of knowledge. Indeed a nation's ability to convert knowledge into wealth and social good through the process of inno - vation determines its future. The purpose of innovation is to create a new value for an indi- vidual, team or organization, or for a society at large. New values could be in the form of breakthrough products or services, new strategies, new processes and new methods for organization. In this article, we will discuss the issue of the Indian Innovation System, specif- ically linked to science and technology innovation. ~~~~~~~~~~r ' ||Sl_89 - t7 g ) t a . __ .................................... . \ . [ 2 . i-S.~~~~~~~~~~~~~~~~~~~~~~~~A AM,~f7 1 ~ X i i >' J ;...'~~IL F A I I 'O 0} 1t 19 The strong Science and Technology (S&T) base of India gives us Japan have such technological capability. the confidence that India has a sound S&T capacity. The credit for In the industrial R&D sector. India has achieved success in this goes to the great architect of this base. namely. Pandit many areas. The Indian pharmaceutical industry, which was Jawaharlal Nehru. To Pandit Nehru. science was not only a tool for practically non-existent at the time of independence, has economic development but also a means for the emancipation of emerged as one of the most competitive producers of therapeu- mankind and the qualitative transformation of a stagnant society. tics in the world. It has contributed greatly to improving the The 1958 science policy resolution reflected his own belief beauti- standards of healthcare in the country and making modern med - fully: "It is an inherent obligation of a great country like India with icine available to the people at an affordable price. India is a net its tradition of scholarship and original thinking, and its gTeat cul- exporter of pharmaceuticals, meeting more than three quarters tural heritage, to participate fully in the march of science, which is of its requirements of bulk drugs and almost all of its require- probably mankind's greatest enterprise today". Indian S&T in the ment of formulations. Agro- chemicals is yet another area of sue- post-independence era has marched ahead in that spirit. cess for Indian S&T. The industry, which was predominantly India today possesses a massive science and technology dependent on imports until the early seventies, is today self-suf- infrastructure spread across the country. With over 200 univer- ficient in all matters of technology and production, thanks to the sities, i5oo research institutions and 5ooo Ph.D.s being turned contribution of the indigenous know-how. In the area of petro- out every year, India is in an enviable position with regard to the leum refining and petrochemicals, the country has made some S&T manpower. Scientific institutions have been set up and nur- impressive strides. In the area of industrial catalysis, India ranks tured in many diverse sectors. These have included agriculture. amongthe top few countries possessingworld class capabilityfor atomic energy, electronics, environment, ocean, space, biotech- catalyst development and manufacture, in some cases, even nology, non-conventional energy sources, defence, heahh, and exporting its technology to the USA and Europe. more. The chain of national laboratories, which was set up after The Indian leather industry has been transformed from a independence, has built several core competencies in a large mere exporter of raw hides and skins a few decades ago to a number of areas. All this gives India a marvellous launching pad. vibrant, modern industry that ranks among the top five export on which it can set up a really ambitious growth agenda. earners. R&D has contributed to the entire range of technical activities from leather processing technologies for curing, Some achievements dehairing, tanning and finishing (all environmentally clean), to process automation and modernization of tannery opera- I N D IAN S CIE N C E and technology in the post- independence tions, and novel product design. period is something to be proud of. Thanks to the 'green revo- lution," India is able not onlyto feed its masses but has enough Other innovation systems to spare and export. The "white revolution "has made India the largest milkproducer in the world. MANY SOCIETIES IN INDIA have nurtured and refined sys- With a comprehensive defense research and development tems of knowledge of their own, relating to such diverse infrastructure, India is among the few countries of the world, domains as geology. ecology, botany, agriculture, physiology which makes the most sophisticated weapons and weapon sys- and health. We are now seeing the emergence of terms such as tems, including missiles of various descriptions and multi- parallel'. 'indigenous' and 'civilizational' knowledge systems. barrel rocket systems. It has developed low-level tracking Such knowledge systems are also expressions of other radar, night vision devices, and sophisticated ship sonar sys- approaches to the acquisition and production of knowledge. tems. An indigenous light combat vehicle and a remotely pilot- They were, as yet, neglected by modern science, as the phar- ed vehicle are at an advanced stage of development. Today, maceutical industry has realized. India ranks among the few nations of the world that have a The growing dominance of a single view of the natural credible capability in space science and technology, including world as expounded by modern science will undermine these design and construction of satellites and launch vehicles. knowledge systems. Further, the process of globalization is India's capability in nuclear science and technology, including threatening the appropriation of elements of this collective nuclear fast breeder reactors, has been the result of indigenous knowledge of societies into proprietary knowledge for the efforts. The entire range of technologies from prospecting of commercial profit of a few. These fragile knowledge systems raw materials to the design and construction of large nuclear need to be protected and enhanced through national policies reactors is now available on a self-reliant basis. and international legislation. while ensuring their develop There have been other proud moments in Indian science and ment and proper use for the benefit of their holders. technology. We had path-breaking developments in parallel In particular, a greater awareness about the cultural relation- computing. breaking into the export market for supercomput- ships between various knowledge systems needs to be created. A ers. And India has unveiled the newv, PAERAM ioooo supercom- systematic and in-depth analysis of the parallelism of insights puter, with a capability of 1oo Gigaflops (0oo,ooo,ooo,ooo between indigenous and civilizational knowledge systems, on mathematical operations per second). The open frame archi- the one hand, and certain areas of modern science concerned tecture of C- DAC's PABAM 0oo0o places India in the League of with fundamental aspects, on the other will have to be launched. Nations, which are expanding the frontiers of supercomputing In particular, a strong linkage between the indigenous knowl- to teraflop range. Presently, only the U nited States, Europe and * edge holders and scientists will be needed in the new millenni- 20 Development Outreach WOR It) B ANK IN>NSI II U IF um to explore the relationship between different knowledge sys- India's publicly funded R&D institutions are also participat - tems. Some of the greatest opportunities are provided, especial ing in this grand endeavor. The experience of the Council of ly in the Indian context, in the area of traditional medicine. Scientific & Industrial Research (CSIR). which is the world's Examplesofthisnewpartnershipbetweenthesetwodomains largest publicly funded industrial R&D institution is worth of knowledge are gradually emerging in India. Let us cite a cou- sharing. CSIR is building new innovation models by forging ple of examples. The first is a medicine that is based on the active unusual local partnerships. reaching out to the remote corners ingredient in a plant. Trichopus zeylanicus. found in the tropical of India. Avillage called Athaoni. on the border of Maharashtra forests of south-western India and collected by the Kani tribal and Karnataka is the place from where Kolhapuri chappals come people. Scientists at the Tropical Botanic Garden and Research to us. They were until recently made by an age-old traditional Institute (TBGRI) in Kerala learned of the tonic, which is technique. Scientists from the Central Leather Research claimed to bolster the immunc system and provide additional Institutc (CLRI) studied the process and helped them to reduce energy, while ona jungle expeditionwiththe Kani in i987.Afew the processingtime from 3o days to so days through the appli- years later, they returned to collect the cation of good science-the stamping samples of the plant. known locally as process was standardized and certain arogyapacha. and began laboratory stud- A stronig linkage innovative changes in design, based on ies of its potency. These scientists then computer aided techniques, were made isolated and tested the ingredient and between the to give more comfort to the wearer. But incorporated it into a compound. which this was not atop down process. The old- they christened 'Jeevani"-giver of life. indiagellous est man in the village was consulted. he The tonic is now being manufactured by a know/edge holders was convinced that the age - old traditions major Avurvedie drug company in Kerala. will have to change. Today several hun- In November 1995, an agreement was and scientists will be dred artisans have been trained by CLRI. signed between the institute and the trib- This has not only enhanced family al community to share a license fee and to needed iii the new incomes for the villagers but also assign 2% of net profits to the tribe. The changed their perception of science and process marks perhaps the first time that m ie;inium development-in short a micro social cash benefits have gone directly to the transformation. CSIR has realized that in source of knowledge of traditional medi- this innovation chain. it is not techno- cines-the original innovators. economics alone, but the socio-economic and socio-cultural aspects that need to be taken into consideration. Grassroot innovation India's new S&T1 policy WE NEED A PARTICLLAR FOCUS on community knowledge and community innovation. To encourage communities, it is INDIA'S POLICY on science and technology would have to be necessary to scout. support, spawn and scale up the green grass directed along five lines. The first priority will be to use the great root innovation. It will generate employment on one hand and powers of science and technology to meet the basic human it will use natural resources sustainably through linking of needs. particularly taking note of locale-specific situations; innovation, enterprise, and investment. This will again require these would relate to food. health, water, energ,y. employment, building up adequate linkages with modern science and tech- shelter, and the like. The second priority would be to use science nology and market research institutions. One will need new and technology to create wealth, both by enterprises as well as by innovative models of development, employment generation. individual Indian entrepreneurs. The third priority would be to and conservation of natural resources. embark on a major thrust in emerging knowledge based areas We need to build more organisations like Gujarat Grassroots such as informatics, biotechnology, new and renewable energy InnovationAugmentation Network (GIAN). GIAN has attempted to sources, new materials and environment -related programmes. set up a venture capital fund for small innovation providing for its In all of these areas. India can make a major headway and surge linkage with R&D and scaling it up into a viable enterprise. The ahead of the rest of the world. It would, then, use this position to recent effort by two science departments, which set up a its advantage in the global technological scenario. The fourth Technopreneurs Promotion Program is also noteworthy. since it priority relates to strategic areas, where neither for love nor for provides the much needed financial support for the first time to money, technologies will be available to us. This would involve individualinnovators.beitanartisan,afarmer,oraschoolboy.The nuclear energy, defence research, and space science and tech- establishment of the National Innovation Foundation is another nology. Fortunately, we have built self-reliance and enormous step in the right direction. since it will help create a national regis- capabilities over the past few decades in all these areas. It is on ter of these grass root innovators and will facilitate the process of this powerful base that India will make its confident march into taking these innovations to the market place. Eventually, it is the the twenty-first century. partnership of all the players, in the formal sector as well as the . informal sector, that will make the Indian innovation movement Ragunath A. Mashelkar is director general of the Council of Scientific happen. Two examples of this partnership are noteworthy. . and Industrial Research, India. Visit: www.csir.res.in I A I 1 2 1 / I 21 Mapping Progress On the Road to the Knowledge Economy in Brazil, China, and India BY ANUJA ADHAR UTZ NOWLEDGE-DRIVEN develop- ment has recently emerged as an knowledge economy are already quite visible in Brazil, China, and India-which are home to 45 percent of the world's population. However, these elements manifest themselves in different ways. The information tech- nology software and services industry in India, for example, has caught the imagination of the world, currently accounting for almost 2 percent of India's GDP. and grossing an annual revenue of US$8.26 billion during 2ooo -ot. China has flourishinghigh- tech parks along its coast that are hotbeds of innova- tion. Brazil is distinguished by world class technolo - gy development in areas such as aeronautics (Embraer), tropical agriculture (Embrapa), and biotechnology (Genoma). However, these are only a few of the more spec- tacular examples. Knowledge is increasingly becoming a key factor of development, and the "knowledge economy" is in no way purely confined to information and communications technologies (ICTs) or high-tech industries. It is defined as one where knowledge is created, acquired, transmitted, and used more effectively by enterprises, commu- nities, and individuals for greater economic and social development. Such an economy taps and uses the gTowing stock of knowledge and advances in . ICT for its overall development. 22 Development Outreach wOI IANKN IN' I I IUl A benchmark for uisite for increasing the efficiency and flexibility of the econ- knowledge assessment omy to respond to new challenges, to take advantage of new opportunities, and to ensure that the benefits of growth are TO ASSESS countries' progress in their transition towards a broadly shared by all in society. knowledge economy, the World Bank Institute has developed This article presents the knowledge assessment scorecards a benchmarking tool-the knowledge assessment methodolo- for Brazil, China, and India as well as that of the United States, gy (KAM). ' The KAM shows how an economy compares with which is one of the most knowledge-driven economies in the its neighbors, competitors, or countries it wishes to emulate. world. The scorecards can be used to assess progress made by It helps to identify the problems and opportunities that a thesecountriesoneachofthefourpillarsoftheknowledgeecon- country faces, and where it may need to focus policy attention omy. Generally speaking, the stronger a country performs on or future investments. each of the pillars, the better positioned it is to make effective The basis of the KAM is a data set comprising 66 structur- use of knowledge for its economic growth and social welfare. al and qualitative variables for 95 countries (both developed and developing). These variables serve as proxies for the four The education base pillars of a knowledge economy, namely: an enabling economic incentive and institutional regime; an educated and skilled popu- THE PICTURE that emerges from the scorecards is mixed. lation; an efficient innovation system: and a dynamic information Brazil, China, and India still show weaknesses in their eco- infrastructure. Good performance in all these areas is a prereq- < nomic and institutional regimes which provide only limited KNOWLEDGE ASSESSMENT SCORECARDS PERFORMANCE INDICATORS A Average annual GDP growth 1990-99 (percent) HVAu g|NR, B Human Development Index, A A 1999 0 B --0- ECONOMIC INCENTIVE AND NX \ / \C -" \ \ / < c INSTITUTIONAL REGIME C Gross Capital Formation as a / \ .-@ ~7 \>/ \ / \ )fS . / \ ............. percentage of GDP (average M N /, M o annual growth 1990-99) D Tariff and nontariff barriers, 2001 E Rule of law, 1999 ._ ---, t E L \ k-<\ 27 '<-L E F Control of corruption, 1999 \ / 1\.// \ < \ \ < / /N Z INNOVATION SYSTEM KV / / -7 V \ XJF K X /-> \ \ / F G Foreign direct investment as a X . / \ \ / X / / \ \ / ~~~~~~~~~~percentage of GDP, 1990-99 /< \ >G 9 j \ /G average H Expenditure for research and L ____ 14----- development as a percentage of gross national income, 1987-97 average I High technology products as a NDIA USA percentage of manufactured A A exports, 1999 100 EDUCATION AND HUMAN RESOURCES N,t' \ / 7 \ i \ < / AC J Adult literacy rate (percentage ,' \ \o_s_ \j / / \ // \ 9 5 / \age 15 and above), 1999 M Z \,/<0e' X --- Mjf 4'.N/A/ XD K Secondary enrollment, 1997 L Tertiary enrollment, 1997 INFORMATION INFRASTRUCTURE M Telephones (mainlines plus K/-- ,; --, ,is SF K /) //-\A /JF mobile phones) per 1000 people, \ X \ > > \/ N Computers per 1,000 persons, 1999 JN - j \\ ,, J \ / \ 0 G o0 Internet Hosts per 10,000 I'--- H people, 2000 F A L L 2 0 0 I 23 incentives for the efficient use of existing knowledge, for benchmarking these countries and for identifying chal- the creation of new knowledge, and for the dismantling of lenges that they would have to address in developing strate- obsolete activities and the start-up of more efficient new gies on how to succeed in the global knowledge economy of ones. This pillar is central to an economy's overall ability to the twenty-first century. This forum, organized by WBI in make effective use of knowledge and is thus critical to the partnership with the British Council and the OECD, includ- effectiveness of the other three key areas. Therefore, the ed teams of policymakers from government (ministries of enabling environment will need to be strengthened in these finance, planning, education, science and technology, and countries to support their transition to knowledge based information infrastructure), as well as representatives from economies. the private sector, academia, think tanks, media, and non- A strong education base is fundamental to the knowledge governmental organizations. economy. A majorweakness of Brazil and India's knowledge A unique aspect of the forum was that it provided an structure is their secondary enroll- opportunity for knowledge sharing ment rates, which are quite low com- and for frank and open discussion not pared to China, a country with less than only across the functional parts of zo percent of Brazil's per capita government, as represented bv the incme Onth oterhan, razlinhinia, with itsgoen ntasrpsnedbth income. On the otber hand, Brazilian 0 0 various ministries, but more impor- enrollment rates in tertiary education higher level of basic tantly, with representatives from the are higher than those of India or China. private sector and civil society. They These differences in the level of educa - educationn has been also learned from comparing and con- tional attainment are reflected in the trasting strategies and case studies way these countries participate in the very successful in across the three countries The teams knowledge economy. India and Brazil, became aware that to benefit from the with their relatively high share of uni- generating knowledge revolution, they will need versity graduates but lower levels of gr whto have a more comprehensive and adult literacy, have been successful in economic growth consistent approach and devise con- small high-tech segments. China. with b crete strategies for all the relevant its higher level of basic education, has from a broad policy domains. Furthermore. they been very successful in generating eco- concluded that to ensure a coherent nomic growth from a broad range of range of strategy across sectors, their govern- manufacturing activities. Improving r ments will need to be more responsive educational attainment levels as well as manufactunfig and dynamic to take account of inter- the quality of education and putting in sectoral linkages, and encourage net- place better mechanisms for life long activities. working and interaction among all learning are major challenges for these actors-in government, private sector, countries to make more effective use of and civil societv. knowledge for their development. As a follow-up to this forum, these countries are developing their own knowledge strategies. The The innovation system Indian Planning Commission has recently published a report on "India as Knowledge Superpower: Strategy for BRAZTL, CHINA, AND INDIA are also weak in the innovation Transformation." The Chinese team has begun to develop a system-a telling indicator is that their spending on research full fledged knowledge sTrategy and is organizing an interna- and development as a percentage of GDP is less than a third tional seminar on this topic; and the Brazilian team is also of what it is in OECD countries. In terms of the information planning a conference for private sector representatives. . infrastructure (telephones, computers, Internet. and so on), they lag considerably behind advanced countries such as the 1 National Association of SoftAare and Service Companies (NASSCOM) at United States, thus exacerbating the risk of a growing "digi- www.nasscom.org. tal divide" between developed countries that are prepared to 2 Available at wwwl.worldbank.org/gdln/kam.htm. The data comes from reap the potential benefits of the information revolution, various sources published in 2001. and developing countries like themselves that have only limited access. Anuja Adhar Utz is a knowledge management officer working on the Knowledge for Development Program at the World Bank Institute. Knowledge sharing For more information on this program, visit: www.worldbank.org/wbi/knowledgefordevelopment; also, see country TH E KAM is also a useful tool to spark debate on countries specific analysis: Korea and the Knowledge-based Economy: Making preparedness for the knowledge economy. At a recent six day the Transition (2000); and China and the Knowledge Economy: policy forum for high-level delegations from Brazil, China. Seizing the 21st Century (2001). For more information on the and India, the KAM provided a practical starting point for knowledge economy, visit: www.developmentgateway.org 24 DevelopmentOutreach WaORL BANK INSU11R.FE SUPPORTING THE PRIVATE SECTOR BY AFSHIN MOLAVI W ff T H EN MARIANA RODRIGUEZ and David Fischman left their comfortable /engineering] obs in a Lima office to open a private computer institute in v983, their colleagues and family were surprised. With only $7oo in cash, low-rent office space, and two computers, the former engineers opened the doors to CiberTec, an institute that promised to teach Peruvians basic computer skills. CiberTec was immediately overwhelmed with demand. Peruvians flocked to the institute, signing up for classes faster than the fledgling institute could grow. -~~~~~~~~~~~~~~~~~~~~~~~~~~~~.. . ... L ;...-S It ta'C,4> A2i IV 7 E ok- -E C- t~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2 After a decade of high demand and fast growth, the com- 4 advanced. Developing countries need to become fellow puter institute was transformed into a private university in travelers on the information superhighway. All too often. 1994.Today,Rodriguez. Fischmanandtheirtwooriginalpart- it seems as if poorercountries are movinginthe slowlane. ners are founding board members of the Universidad Peruana IFC is committed to bridging this global digital divide. The de CienciasAplicadas (UPC), one of the top private universi- joint World Bank-IFC Global Communications and ties in Peru. with two campuses in Lima, 3,ooo students in ii Information Technology Unit (CIT) has pledged up to $370 undergraduate programs, n!oo computer technical career million for an expected 2o projects in fiscal 2ooi. So far, students, more than ioo MBA students, and many more in IT $26o million of projects have been approved, ranging training and Business courses. from an innovative project that brings the internet to Indian slums, partial credit guarantee for telecoms proj- Education initiatives ects in India and Thailand, a major telecoms investment in Morocco, and the financing of an internet service provider LAST YEABR the International Finance Corporation, the in Tajikistan. private sector arm of the World Bank, approved a $7 million An innovative $i.6 million IFC pilot project in India investment in UPC to support the that provides internet services to continued growth of this innovative India's slums and rural areas private university. The UPC success 0 . showed how rapidly even illiterate story reflects the growing demand Quality ediication iS children can become comfortable for private education in the develop- f * with computers while clearly dis- ing world as governments find edu- an essential element playing this underserved segment cation budgets strained and citizens for economic growth, of the population's desire to gain see education as a critical tool for scial knowledge. Crowds of children social and financial mobility. It also up rdso gather around the computer reflects the specific demand for . a kiosks. adeptlv maneuvering the high-tech education and the need to mobility, and mouse, browsing the web on kid- invest in the continued growth of c in t'e friendly sites, and playing com- existing institutions to keep up with con the puter games on the keyboard. Over technological innovations interconnected the next three years, the project The IFC investment in UPC will install 6o more public comn reflects the institution's belief that economy. puter kiosks throughout the coun- nations that progress along the try to test its potential to increase "knowledge economy" pipeline tend literacy. to prosper economically. IFC's mis- The range of IFC investments sion is to promote sustainable private sector investment in reflect the need to help create a dynamic information infra- developing countries as a way to reduce poverty and improve structure to facilitate the effective communication. dis- people's lives. Education is a proven reducer of poverty and a semination, and processing of information. The establish- key to a nation's economic growth. ment of the communications infrastructure complements As Peter Woicke, executive vice-president of IFC said: IFC investments in education because an educated and "Quality education is an essential element for economic skilled population is required to create, share, and use growth, upward social mobility, and competition in the inter- knowledge well. connected economy. Faced with growing lower- and middle- While telephone lines, cellular services, and software class populations that are too often underserved, these packages help the private sector of developing countries. nations can increasingly rely upon private education to com- new educational opportunities-like UPC - ensure the plement public education." Though still a small part of the continued growth of the middle class and lower middle portfolio, IFC invested in private education projects in the class that is so critical to private sector development. and following countries in the years 2000-1: Nigeria, South poverty-alleviating economic growth. By investing in pri- Africa, Cameroon, Ghana, Uganda, Uruguay, Argentina, Peru, vate educational institutions and communications infra- Brazil, and India. The investments ranged from a private stu- structure in the developing world, IFC is seeking to spread dent loan programs in SouthAfrica and India to a scholarship the benefits of the global knowledge economy. fund for underprivileged children in Uganda to an expansion Perhaps one day the IT Worx software engineer in Cairo loan for a private university in Argentina. might be able to teach a class via internet to UPC in Lima, his image and words carried along smoothly by an effective Building the broadband network linking the two countries thousands of communications infrastructure miles apart. EDUCATION, HOWEVER, can only substantially benefit a Afshin Molavi is a communications analyst at the International nation if the means to disseminate that knowledge are . Finance Corporation. Visit: www.ifc.org 26 Development Otitreach 'a 1 AN INK IN II I U IF Ne* tnformation Infrastructure well as growing security concerns. those stanidardized bv DVB. the wealth Newa fnformation Infrastructtire New initiatives are therefore now and the knowledge stored on the CONTF INtUF 1F FE t0 Ps AX } 218 needed in order to give more people Internet could be available to many casting. Digital television broadcasting quality access to the knowledge and more people. ha has been started in a few countries, but information that are so rich and valu- it still mainly carries only conventional able on the Internet. One new approach Pauli Heikkila is managing director, Digita Oy, television programming. It is interest- can be implemented by capitalizing on Helsinki, Finland. For additional information ing to note that this particular area has assets that we already have. such as the and contacts, visit: www.digita.fi lagged behind in the deregulation broadcasting infrastructure. By using www.digitv.fi process. In many countries, the state existing digital technologies, such as www.dvb.org still maintains tight control over what r kind of programming is to be broadcast. especially over the terrestrial network. As a result of this. we have a wrong par- adigm of the technological and econom- The new journal for ic capabilities of the future digital tech- nolog-, DVB, which stands for digital European foreign policy video broadcasting. It could equally well be called "digital versatile broadcast- ing". DVB is capable of providing extremely cost-effective digital infor- TIranantic Internationale tohtih kTIP) is mation and data broadcasting-such as the quacM iygEish-lingaoge imagamin of Internet content-wirelessly. , rS mlan Council on Foreign Relations However, this calls for increased I n. international initiative and coopera- t'n fetures a selnection of articles, es say; tion. Using this technology, the most opd -e0 _ y | & % Yo d E agtt d pieces on topical issues in for- interesting content of the Internet could ' - ,-.i - -uments,book Itvlso peseandasurvevn relatively readilv be made available .f iridrs from European foreign globally. using existing terrestrial and nplin magaro. satellite networks. To access the content E i,ential reAdingforevery they want to download, end-users would I|wn is wsorting in the ield of poli- only need an inexpensive PCI card or tics and global economic issuc e USB device. It is also possible to use a t . sttd1' and is otresrted in European vines, ois sttrnatiooal relaions mobile phone or any Internet coninec- K T ion as an upstream channel. , . . . havetongifetthatiseesninnt journalotif`thenema.n Council The alternative architectures of such of , a'srt-' of Foreign Relations would hybrid systems are beyond the scopeof hbe of gr,it intctc.t and im- this article. However, thev have been 1'h,'' - port.occtoawle cadet- ship. TIP will he good rvwe shown to be technologically feasible. r ittdeed to the international and with inexpensive and wireless ter- n *5t t' - foreign policy cornsonituni minals available, they could make the a iet , ,jA. tis,!i,rw. Internet available to millions of new users, and possibly change the usage patterns again. Conclusions THE RAPID DEVELOPMIEN'I of com- puters and communications will con- ls-ir'i'saei' .')8! i Asires . tinue at least for the next ten years. The 1a.3- Ii..ii Ti lio ul,.C (Jiti'.. . main commercial driver today is enter- Ir iJIil;.e - layveent .njsre,il lIt te [: Charge iy .\,stermard: Visc1 [oses Li tainment, but manv people cannot |w'ti,sin. nr iwtseilt .iiiwttt _ _ _ -tp. Ie ._ . _ l afford broadband access, or it may not b i even be available in the area where thev Please send your subscription order or your request for a free copy to live. Internet usage is also hampered TIP-Subscription Service c/o Aluta Company 5108 Wally Drive El Paso, TX79924-9906 by the constant need to update and Faxi915)755-4806 e-Mail: tip@fsd-de http:J/www.dgap.org/english/indexe.htm upgrade the end-user terminals, as I, j , 1,,, 27 CAN WE DO THE RIGHT THINGS? THE FUTURE OF TECHNICAL ASSISTANCE AND CAPACITY BUILDING BY EVELINE HERFKENS FFECTIVE INSTITUTIONAL development requires a radical break with outmoded practices. That break is not easy to make. Recently, the Dutch Development Program hired external consultants to eval- uate our performance. When I think about institutional develop- ment, I think about something those consultants told us. Our focus is on doing things right. The focus should be on doing the right things. Doing things right means losing sight of the big picture in which you operate. Concentrating on your own job and your own responsi- bility to carry it out to the best of your ability. And it means * Strengthening local capacity fear of change, of taking risks and making mistakes. Every country, North and South, has some capacity, though Procedures take priority over goals. Doing the right things not always in the amount or form that it would like. Capacity is means starting with a clear vision of the context in which ever present, even without external inputs. So the burning you work. Being flexible so that you can adapt to new situ- question is not how we should deploy our Western knowledge ations. Knowing where you are headed and how to get and our Western experts, but shouldwe deploythem at all? there. The good thing is that the list of programs and organiza- tions dedicated to institutional development with little or no Doing the right things foreign involvement is growing steadily. Their priority is to mobilize the expertise within their own country. By reversing THINKING Of THE RIGHT THINGS to do in capacity building the brain drain, for example. One of them is the African and technical assistance, five items spring to mind. Capacity Building Foundation (ACBF), into which the Partnership for African Capacity Building (PACT) was inte- Ownership grated last year, is a sound organization, with committed part- Before a country can begin to build its capacity, it has to ners-and it is almost completely African. decide for itself what its goals are and how it plans to get there. Every country has to answer this question on its own. Flexible, made-to-measure solutions That is why Poverty Reduction Strategies are so important. I Institutional development is an abstract term. Behind it must add that institutional devclopment is not just a matter are flesh- and-blood people and organizations. journalists, of good government structures. As important as these may police officers, agricultural advisors, tax inspectors, statisti- be. they will succumb to the corruption of power unless they cians. doctors, auditors. We are talking about their combined are counter-balanced by a vibrant civil society that provides capacity, as individuals and embedded in organizations and primary impulses. checks and balances. Institutional devel- networks. Training doctors is one thing. Putting them to work opment is about government, parliaments and civil society, as part of a sound policy for the health sector is something else and how they interact. And. more in particular, about how to entirely. I do not know which is worse: a doctor without a hos- maintain a focus on povcrty in all matters of public pital or a hospital without a doctor. finance-and in a participatory way. ; In general, we seem to know more about improving capa- tg Development Outreach \Vc'RSO D \N K N ISII I 0.w...~~~ ~~ ~~~~~~~~~~~~~~~~~~..1 ........ ment in people and organizations. A balance that we have to of the poor. We need to keep oTi asking countries whether they find through sector-wide approaches. There are no blue- are using their public finances to tackle poverty seriously. prints, just careful analyses of individual countries and indi- That involves removing legal obstacles, streamlining legisla- vidual sectors. Capacity building begins with listening. tallk- tion and improving coor dination between organizations. ing. analyzing and mapping out the problems: responding by Institutional development is about taking the hot political asking questions; and only then coming forward with poten- issiues by the lhorns. tial solutions, solutions which are made to measure. One of those solutions might be foreign technical assistance. But it is Coherence in rich-countrc policy not the onlv one. We can also consider entirely different forms For rich countries, do ing the right thing also means taking of knowledge transfer. a critical look at our own policy and programs. They contain a lot of obstacles to building institutional capacity. Tied aid is Mainstreatcingpocertvi reduction just one of many possible examples. Our goal is poverty redoctioni. In the end. the critical ques- tion is what institutional development means in the fight Stop doing things right! against poverty. It is not just a matter of capacity within cer- tain organizations and institutions. The legal framework, andcl F0 R N LO) N G TI M E. we have known what the right things are: norms and values. also come into play, as does the way in focusing on ownership, helping countries analyze the which organizations interact and cooperate. Take, for exam- strengths and weaknesses of their own institutions and capac- ple. consultation between management and employees, or ity. doing away with supply-driven or tied aid. stopping using independent advisory boards, statistics agencies. and med ia. foreign experts to fill the gaps. keeping our eyes and ears open It is not enough for organizations to do their work effi- for the effects on poverty. and thinking critically about our ciently and have people to r un them. In many developing ownvi attitudes. But we have just begun to put these ideas into countries, we see a process of systematic but silent exclusion * practice. We have made the mental shift to a new paradigm. I A - I I C'I 9 but our behavior in practice is lagging far behind. Very often t Bri 1ging the gap implementation is still business as usual and we are still doinb things right. Especially when it comes to technical assistance. FOLLOWING ARE A FEW Dutch initiatives and plans, designed to bridge the gap and start doing the right things. Rethinking technical assistance As already mentioned, that last year we set up a new pol- icy framework for technical assistance. We decided to close B AC K IN 1993 the Berg report leveled sharp criticism at the down the department that sends Dutch experts to the devel- unimpressive results of technical assistance. But even before oping world. There was fierce parliamentary and public that, Kim Jaycox. then World Bank Vice-president for Africa, debate. Now we see eye to eve. WVe will respond to demand. made the case that expatriate technical assistance in fact adopt sector-wide approaches and begin by analyzing undermines African capacity. We cannot pretend that the sit- capacity. uation has changed much since then. Why is it so difficult to We are mainstreaming poverty reduction in all areas of break the mold? policy, including institutional development. In our In the first place. because technical assistance fits in per- thoughts and our actions, the link with poverty reduction fectly with the myth of Western superiority-and even rein- must come first. We are increasing our capacity for institu- forces it. Both in the North and the South. We give, they tional analysis in order to reach more informed opinions receive. We know, they learn. We have to take care of things, about our programs and to assess the institutional fabric because they cannot. Last year we set up a new policy frame- and existing capacity. work for technical assistance, and we decided to close down We work together with other donors to harmonize proce- the department that sends Dutch experts to the developing dures. And we will continue to raise the same issue in the world. There was fierce parliamentanr and public debate. I saw DAC. We are now looking at the options for pooling technical an article by a Dutch expert who was against reducing the assistance, with field studies in four countries on how to number of development workers in the field. The article was improve donor coordination. headed: "If the (Dutch) doctor leaves, development stops. "And A new capacity building window in the Netherlands-World another quote: "He fkens kills babies" Vested interests in the Bank partnership program. Here too, the emphasis should be development industry are hiding behind do-good intentions. on knowledge sharing, ownership and adapting to the capaci- Recipients, too, have been brainwashed by this counter- ty of individual countries. productive paradigm, which manifests itself in an outmoded Financing a follow-up to the Berg study, Reforming collection of instruments, heavy on parallel activities like Jechnical Cooperation and Capacity Development into a New project implementation units. Not for nothing does the draft CentuDy, carried out by UNDP. Last month in New York. we of the Millennium Partnership for the African Recovery met for the first time with UNDP, the World Bank. WBI, bilat- Program say: "As part of the process of the reconstruction of eral donors and organizations from developing countries. the identity and self-confidence of the peoples of Africa, it is This study hopes to do for institutional development what the necessary that this is understood and valued by Africans David Dollar report did for aid in general. themselves." I am reminded of what a friend from We have no shortage of new ideas. The problem is how to Mozambique once told me: 'Whenyou move to Mozambique, free ourselves from old ideas and practices. At every turn, we you are by definition an expat expert. But when Imove to the still face lack of confidence in recipient countries, the ten- Netherlands, I am only an immigrant.' dency to cling to familiar procedures and a powerful lobby The second reason we are stuck is that foreign technical for the interests of our own TA industry. We are so focused assistance is so diffuse and hard to pin down. It is part of on justifiable expenditure of donor funds that we lose sight almost every intervFention, program and project at ever' level, of what it's really all about: ownership and development of There are really two sides to technical assistance-first, the local capacity. official policy debates and political posturing and second, the Let's not put off change until we know exactly how the new real world, with the gritty dilemmas that come up in any effort approach will look. Institutional development is an adventure at implementation. We pay too much attention to the first and into the unknown, a voyage of institutional discovery-and a not enough to the second. The end users ofTA are usually hid- learning process for all parties. Technical assistance and den away in the middle levels of developing country organiza- capacity building are a part of all this. You can look at them as tions and are rarely consulted. Many do not even think of TA two sides of the same coin. The value of that coin is the contri- as something they can mold to fit their own needs. bution that institutional development makes to poverty But unless we all push for change and reform, technical reduction. We want that value to rise, and preferably in local assistance will remain everybody's and nobody's problem. We currency. We could do that by speculation, or even gambling. have to tackle it. Because it is not just one more item on our But I would rather take justifiable risks and resolute action, if political agenda. It is the only way for-ward to effective poverty possible in a joint venture. reduction. TA still accounts for about a quarter of ODA. That is about fifteen billion dollars a year. We owe it to ourselves and Eveline Herfkens is minister for Development Cooperation of the to the recipient countries to use that immense sum of money Netherlands. This article is based on her speech at WBI's Spring as effectively as possible. * Meetings Donor Breakfast, Washington DC (April 30, 2001) 30 Development Outreach WOxL I; AN K I \II;] F m V BY JAIRO OUMA JURA NYONE WHO TL-OUt(H 1' that insurance stops at the negative political events. In fact, it is difficult to understand divide betweeni economic investment risks and the magnitude of risk on investments under the current eerie political risks in trade transactionis is on the edge market. InAAfrica many private and public insurance compa- of an awakening. A new 'World Bank approved nies do not offer compensation to investors for losses or dam- agency, called African Trade Insurance Agency ages arising out of political or war afflictions. (ATI), now seeks to help. encourage and develop But why is this? Since the nineteenth century. Africa has trade, investments and other productive activities in Africa lbv Ibeen known as a hot spot with aD erratic, belligerent attitude offering guarantees against risks in business transactions. among nations. The colonial past saw many wars and revolu- The agency is an international institution established by an tions between tribes, nations, as well as against the colonial agreement between sovereign states, and works in collabora- regimes. This has eased off with African states gaining inde- tion with other private insurers. pendence. However. civil wars are still being waged. and there are across-the-border sporadic incursions throughout the The high probability of political risks S continent. It is no wonder. therefore, that most underwriters avoid clauses for protection against political risks, because FOPt A LONG TIME traders and investors, both local and for- Africa is still rife with violent and destructive coups and eign. had to limit the injection of investm-lent capital forfear of . counter- coups, civil wars. abject povertv. socio-economically , NI I2 { 3J instigated clashes and hooliganism. Some schools of thought * that markets are volatile and unpredictable in the short term; may argue that, given the political volatility in the region-with that diversification is the only sure way of managing risks rampant wars in Senegal, Sudan, Ethiopia, Eritrea. Burundi, over time; and that high portfolio turnover is demonstrably Congo. Uganda. Somalia and Angola-it would not be econom- tax inefficient and harmful to the best interest of investors. ically viable to provide insurance against political risks. ATI would. therefore, charge premiums sufficient to com Under the prevailing circumstances there is fear that the pensate for any forecasted losses as covered by the contractu- purse for insurance claims would be soon depleted, leavingan al policies. This will be provided on a first-come-first- insufficient financial base to guarantee such risks. But this is served basis for all member countries, and premiums will not what ATI thinks. also be the same for all. Help is on the way A partners coalition AS AN AUTONOMOUS LEGAL ENTITY. ATI is set up on the IN AN EFFORT TO HARMONIZE its involvement in interna- private corporation model and subject to state laws. tional trade development, COMESA has extended an encour Therefore, ATI operates within the legal framework of indi- aging hand in funding the Regional Trade Facilitation Project. vidual states and international trade laws as a corporation, This will boost the regional macro-economic activities. In its which can sue and be sued in case of any breach of contract. bid to process applications for political and commercial risk Though currently located in Nairobi. Kenya, ATI is open for insurance, ATI will provide a standard application form for membership to all African nations. The initial group of partic- each type of transaction that requires a cover, as well as guid- ipating countries is: Burundi, Kenya, Malawi, Rwanda, ance to fill out the form. Tanzania, Uganda and Zambia. The overall objective of the Like any other non- depository contractual financial inter- project is to increase the number of participating countries mediary dealing in life. health, property, and casualty insur- over time and cover most of the continent in due course. In a ance, ATI engages in short-term to intermediate term liabili- world where trade is wont to fluctuating returns and an unsta - ty exposures. To this end, ATI's strategy is to liaise with exist- ble environment, ATI seeks to deliver high quality services to ing Africa-based credit risk insurers to develop synergies in those who entrust their premiums to it. political and commercial risk insurance that can assist the The Regional Trade and Facilitation Project (RTFP) was private sector. According to the Commissioner of Insurance, initiated by Common Market for Eastern and Southern Mr. Sammy Makove, the Africa Trade Insurance Agency African Countries (COMESA), with the support of the World should be encouraged because it would be operating at a high Bank, with a view to facilitating access to. and improving the level to improve trade without competing with other under- terms of, trade finance for imports and exports. This project writers in the local market. "Though working outside our provides credit to participating countries to backup insurance jurisdiction, ATI will contribute immensely to the African policies through offshore trust accounts, which would be economy," he commented. accessible to private insurers to pay valid claims. One active participant in the project is the Multilateral The unique ownership structure of ATI, its strategy and Investment Guarantee Agency (MIGA), which offers politi philosophy, will prove extremely viable to any risk-con- cal risk insurance for a variety of forms of investment, scious investor with an intermediate or long-term perspec- including equity. quasi-equity, and third-party debts. tive. The insurance maximum period is three years, plus Whereas ATI, through RTFP, offers insurance for trade two years of pre-shipment cover. The expected range of transactions, MIGA handles all investments in the form of premium rates oscillates from 0.4 percent to 2.5 percent equity ownership of an enterprise. Potential investors and per annum, depending on the length of credit involved. ATI lenders eligible for such facilities will be directed accord- is really unique in the way it covers risks engendered by ingly. Risks covered by insurLanee policies include coverage both political and commercial instability, moving away against losses caused by war or civil disturbances, embargo, from the idealized version of traditional insurance service government interference with carriage of goods and/or organizations. A remarkable feature is that exporters and entities owing insured obligations. expropriation, cancel- investors from Africa and from outside the continent are lation of licenses, imposition oIr increase of import or welcome to contact the agency, which will be promoting export taxes among others. Standard documentation that conventional bilateral transactions through reduced export already exists covers: costs to traders. Sale of goods usually on credit terms Right now it may be foolhardy to think of this worthy proj - Letter of credit information ect as a dark horse. Insurance companies contribute a lot in Financial lease the financial stability of any economy. The systemic risks Import/export of capital equipment for use by an insured must be reduced because of increased wars, crime and other in carrying on its business vices on productive and real assets owned by individuals and Loans by foreign lenders businesses. This would perhaps be an extraordinary success Loans by local lenders story never seen before in Africa. The ATl approach is based Contract/performance bonds on the probable assumption of an insured peril occurring:; Import/export of goods to stock for sale 32 Dcvelopmcnt OLItreach wom o U l 'i \ I1x [ i . U i i Import/export of goods for processing Positive outcomes Services etc. IT IS FEARED that the agency may monopolize the continental Perhaps, exporters, investors and potential investors market in covering political risks, which are very costly to run. should start warming up to this good news because, at the However, this fear is unjustified. It is true that the agency may heart of ATI's edge. there are the cost and comnmitment to dominate the field for a short period of time. But it may also help restitute losses incurred from political upheavals. To succeed achieve sustainability and international competitiveness by high- in doing this. ATI will cooperate with private risk insurers in quality services to the best satisfaction of all insurance con- the region to implement the Regional Trade Facilitation sumers. The availability of such facilities would develop an inter- Project/MIGA, and provide insurance products that are tai- est inAfrica onthe part of international banks outside the conti- lored to the needs of the market. Its target market will include nent, hence encouraging the development of the private sector. non-African firms selling goods and services in participating This initiative should be given utmost support and coopera- Africarn counitries. ATI will also team up with foieign banks, Lions to resuscitate the dwindling econiomtiies of the African financial institutions financing exports to member countries, nations through trade and insurance investment programs. &, and African companies from participating countries that _ _ tradc intcrnationally. Jairo Ouma Jura is a freelance journalist in Nairobi, Nigeria. Sustainable Development who are poor. The sense of the common good, responsibility, the C,O N T I N U E D I R O M pFOO : ' L democratic spirit. and the increase of the organizational capaci- ty of our societies must be the seal of the ethical contribution of in a more constructive manner. It strengthened a theory that our universities". within AUSJAL (Association of Universities Entrusted to the The recognition of these potentials and weaknesses has Company of Jesus in Latin America) is called "the educational served to define a set of strategic priorities that recently have continuum," which proposes the integration of different educa- been approved unanimously in the AUSJA4L Strategic Plan tional subsystems into a national coordinated system respond (2001), and which address three thematic areas: ) What we ing to the challenges of Latin American society. The search for train for; 2) The person we train: 3) The training institution. an educational alliance, a type of Educational Social Contract The first block of priorities specifically looks at society: for that integrates both public and private education (involving whom. for what development and for what types of societies do state, business, and civil society) is a democratic, participatory, we train. The second block looks at the person that is being efficient way of overcoming the educational deficit. A poor edu- trained, the latter's integral formation, motivation and capaci- cation system amplifies underdevelopment and its effects, such ty for the transformation of this society of exclusion and pover- as the rise in poverty. inequality, the environmental crisis, and ty. The third block refers to the change needed in the universi- discrimination against women. The problem is not only the ty itself. This process requires evaluation and indicators to increase in poverty but also the increase in inequality, where the verifi' the progress we are making toward achieving these pri- educational gap between those who know and those who don't is orities. an amplifying factor to the income gap. The educational deficit This ambitious proposition aims to respond to the chal- in qualitv. relevance, and equity is increasingly considered to be lenge formulated by Albert Einstein: "The world that we hav'e the principal endogenous cause of modern underdevelopment created to date as a result of'ourwavofthinkiinghasproblems that in LatinAmerica. cannot be solved bh continuing to think in, the way- we thought when we created them. ' AUSJAL's proposal presents not only a Solutions new way of professional quality and ethical sensibility. but also a new way of university action. IN 1990, AUSJAL decided to confront that challenge and put forward an educational proposal containing six objectives. Xabier Gorostiaga, S. J. is executive secretary of the Association of priorities, and lines of action. The proposal, later published Universities Entrusted to the Company of Jesus in Latin America in Challenges. was endorsed by 26 universities, more than (AUSJAL). For more information and the complete text of Challenges for 200,000 students and io.ooo professors in s3 Latin Latin America and AUSJAUs Education Proposal, visit: www.ausjal.org American countries. A guiding principle was accepted that would direct ALTSJAL's actions: "To develop a high scienttfic References on this subject: qualit- and a sharp application of studies, in order to achieve Gorostiaga, Xabier S. J. "In search of the m ssing link between education higher social productivity in the creation of goods and services and development. Cha lenges and opportunities for the private un versity n required to inaprove the quality of life of our societies. The Lat n America and tee Caribbean," in Ph ip G. Altbach, ed. Private increase in scientific and technological capacitr must be encour- Prometheus: Private Higher Education and Development. The Center for aged by-a huonanism that leads effectively to solve thegreat injius- International Education. Boston College. Westpost, London: Greenwood tices stiffered by our societies. and particularlu' by the majoritv * Press, 1999. loll :: E 5 l 33 Armed Conflicts Destroy African Environment BY EMMANUEL KORO * The protracted DRC conflict has impoverished and dis- placed people and has increased pressure on the exploita- GENERALLY KNOWN TO TAKE AWAY the lives of hundreds tion of minerals and wildlife through poaching. A Sierra of innocent people, Africa's armed conflicts are also Leone national who attended the workshop and spoke on destroyingthe natural resources onwhichpeople's survival conditions of anonymity said, "Inequity is an underlying and socio-economic welfare depend. It is against this cause of conflict in Sierra Leone." He said people living background that the Washington-based conservation near protected areas such as national parks were not organisation, the World Wide Fund (WWF) held a work- involved in their management and, when threatened with shop this year, in Victoria Falls, Zimbabwe, to raise aware - hunger they invaded these areas to exploit natural ness of the negative impact of armed conflicts on the envi- resources. Mozambique's l2-year civil war had a severe ronment and to develop concrete strategies for mitigating impact on its wildlife, resulting in a sharp decline of its its effects. elephant population through poaching. Although its forests are recovering, its elephant population is still Devastating consequences struggling to reach a viable size. Ethiopia's long and multi- faceted conflict left a legacy of defou;es[atioui, soil erosioni, "ARMED CONFLICT aswehavewitnesseditovertheyears, destruction of wildlife and decline in water quality. has brought in some cases irreparable damage to both Minister Chininga said Zimbabwe's war of liberation humans and natural resources." said Edward Chindori- had a negative impact on protected wildlife areas. "Even Chininga, Zimbabwe's deputy minister of Environment today, 2i years after independence, in protected areas and Tourism who officially opened the workshop. "Wildlife around Victoria Falls, wildlife was being killed or maimed has often borne the brunt of the worst negative effects of by land mines that were planted during the war of libera armed conflict, because it provides a source of ready pro- tion," he said. He said Zimbabwe's war of liberation was tein for people and its territory can be taken over.' largely caused by the inequitable distribution of resources Chininga called for the need to take into account long-term such as land. and that, even today, the land issue in biodiversity conservation measures, which involve the Zimbabwe has not been totally resolved. survival of human beings as well as the preservation of nat- James Shambaugh, Africa senior program officer of ural resources. He said that in the Great Lakes Region, the WWF Biodiversity Project said armed conflicts led to a Rwandese civil war impacted negatively on the rich and decline in trade and agricultural produce, resulting in an unique biodiversity of the Virunga Volcanoes region. inevitable dependence on bush resources such as bush Robert Mwinyihali. manager of the Zoning and Wildlife meat for survival. He said that in an armed conflict sce- Reserve Program in the Democratic Republic of Congo, nario increased exploitation of natural resources habitat said: "People in the DRC are relying on natural resources, destruction and soil erosion were inevitable because con- specifically the poaching of wildlife such as elephants, servation is not a priority. Shambaugh said that conserva- gorillas and rhinos. The rebels took advantage of the situa tion organisations' staff either flee from the countries in tion to exploit minerals; to exploit everything they could, in conflict or get killed. There are numerous examples in order to raise money to fuel the war that is going on." parts of Africa. Commenting on what should be done to Mwinyihali said that for the past two years. armed conflict help mitigate the impacts of armed conflict on Africa's in the DRC has had a severe impact on the country's forests; environment, Shambaugh said that there is a need for con- the timber went to Kigali, Rwanda, and Kampala, Uganda, as servation organisations to maintain their presence despite stated correctly in a UN's recent report. the existence of an armed conflict. The UN report on DRC said Uganda and However, he said it was important for Rwanda were involved in 'mass-scale these organisations to put in place con looting' of DRC's resources which 0 0 tigency measures to adequately prepare includes diamonds. He said DRC _ themselves for the eventuality of con nationals were not benefiting from - U - 0 flict. Andrew Plumtree, director of their resources. "It is the predatory t B- B B.- Uganda based Albertine Rift rebels 'who are benefiting, while local -S- B | U Programme Wildlife Conservation people lack basic public infrastructure - Society was quoted in the workshop such as roads." draft report saying the fighting in 34 DevelopmentO Ltreach ' JRID[) B.ANxKI N III U I F rWHAT OUTR READERS 'T'HINK A lawyer and women's rights advocate comirnents on the rww. ~ ~ _____________latest issue of Development OUTREACH dedicated to -7WOTM F mr ^; sr _s "Gender Equality and Social Incluston.' THE FOCUS ON 'Promoting Gender Equality" in the Spring aooi issue of Development Outreach is an excellent follow-up to The World Bank's recently publishedl policy lresearch report, Engendering Development Through Gender ii i E i E_ I1 I Equality in Rights, Resources. and Voice. By examining the connection between gender inequality and the general 1 _ v 1E failure of communities to thrive, this important work lends support and inspiration to the many people who do 4 , 1:l \ 1. understand the pressing need to improve the lives of women and children around the world. For decades, the argument for women's equality has been framed in terms of morality. However, I suspect Rwanda that took place in 1994, caused loss of habitat. that a far more persuasive argument for ending mammals in protected areas, financial resources from discrimination against women is economic: gender gorilla tourism and from international donors. "However. inequality inevitably distorts and lowers "the bottom protected area boundaries remained intact when NGOs line." It is axiomatic that when women. who comprise maintained a presence." he said. "It is important for NGOs more than half of the world's population, are not to work with local communities, and it is possible to pre- permitted to be full participants in a society. the true pare for war." potential of that society can never be realized. The World Bank's work was sparked by the energy Local communities need help emanating from the Fourth World Women's Conference in Beijing, China in 1995. That conference, which provided a SHAMBAUGH SAID. "It would be a good idea for these forum for the women of the world to meet and compare groups to improve their collaboration with organizations notes, accomplished two very important goals: first. it from the other sectors. For example. front the disaster establishedthat"equalitv" is anideawhosetime had clearly relief and development sectors, as well as the decision and come: and second, it defined a framework within which policy makers from all these areas outside of conservation women could return to their homes and implement specific to ensure that they have a better perspective." He said the strategies to dismantle the barriers of discrimination issue of what local communities could do to mitigate the confrontingwomenineverv corner of the world. impacts of armed conflict on the environment was very The rhetoric of Beijing caught fire as world leaders challenging. because under the circumstances their focus recognized the need to fully enfranchise women and would be on maintaining food source and security. girls. Beyond being morally right, the full The draft w'orkshop report on armed conflict and the empowerment of women is now seen as an economic environment proposes to integrate conflict management necessity. Because women historically have been mechanisms into conservation practices as one of the treated as second class citizens or not considered strategies for mitigating the impact of armed conflict on citizens at all-many activists. not surprisingly. had the African environment. The report recommends to come to believe that the status quo was incapable of identify resource-based interdependencies, add incen- change. Beijingoffered the promisethat changeswas not tives for collaboration. and anticipate conflict. The report only possible but ultimately inevitable. strongly recommends the needto improve equity in distri- Since Beijing, the ideal of equality as a fundaniental bution of benefits from conservation activities, in order to human right to which both women and men are entitled avoid armed conflict. It also says that armed conflict can be has been vitally important to the global women's avoided through increasing transparency. sharing of movement. Nonetheless, that ideal. standing alone, is information to support negotiation and conflict resolu- not enough; we must effectuate genuine tion. "Survival depends on peace. so peace-building implementation of the Beijing commitments to should become a tool of the trade." says the report. empower women. Our efforts are bolstered in important ways when an institution such as the World Emmanuel Koro is president of Sub-Saharan Africa Forum for Bank unequivocally articulates the urgent need for Environment Communicators (SAFE) countries to end gender inequality in order to progress I2 I -. ' 35 economically. The recognition that discriminatory treatment not only harms women and children but also hinders the development of nations is clearly a powerful T argument for gender equality. The special report discussing violence against women in Development OUTREACH calls upon all nations to address "gender-based violence as a pervasive human rights violation as well as significant health and development issues. with powerful implications for coming generations." Women cannot experience violence and equality simultaneously. World leaders must join in global initiatives to eliminate the violence that maims and murders millions of women each year in the form of domestic violence, sexual assault, rape as an instrument of war, forced impregnation, forced abortions, honor killings, female genital mutilation, and trafficking for sexual exploitation. VWhile shattering the remaining obstacles to women's equality will by no means be easy, we can be confident that having the World Bank as a partner in this effort advances the cause significantly. BONNIE J. CAMPBELL Bonnie J. Campbell, an employment attorney at Arent Fox Kintner Plotkin & Kahn, PLLC, in Washington, D.C., is the former Iowa Attorney General and served for six years as Director of the U.S. Justice Department's Violence Against Women Office. She was a member of the U.S. delegation to the Fourth World Women's Conference in Beijing. month, about US$5o.oo. Unfortun-ately. the woman is left xwith the responsibility of providing daily soup ingredients A college lecturerfrom Nigeria comments for the family and also her own basic cosmetic and orna- on the role of women NGOs ments requirement, including those for the children. Her situation is further compounded where health care is Y OU R IS S U E O F Development OUlTREACH, Spring 2001. in involved. In the period of the milk glut (Dungu season), i.e. which "Promoting Gender Quality" was discussed has been July to September, or the period of severe scarcity (Cheedu ver- topical. Indeed you have captured it all when you argued season), i. e. February to April, the woman is often forced by that "In no region do women and men have equal social, eco - circumstances to sell herself in order to make ends meet. nomic and legal rights, a fact that constrains the choices Thus exposing herself to the danger of HliAIDS. available to women in all walks of lifc. " This is very true. Surprisingly, when I asked the women wvhether they had However, from my own independent observations of heard of or had been approached by any women NGOs for the many women groups. associations or NGOs from this assistance on their personal hygiene or their children's part of the globe, it appears that they are elitist in nature, immunization, the answer was NO. In fact, they do not not broad based in composition, and hence lack grass- know that these women NGOs championing their cause root wromen's support. This to a greater extent has been the exist at all. One wonders why. clog in the wheel of progress in many of the women's Therefore for Gender Equality/\W/omen Empowerment efforts to promote gender equality. efforts to succeed, attempts must be made by the enlight- I could give you a typical example. The local processing ened women NGOs to reach out to the grass roots and help and marketing of cow-milk in Nigeria is dominated by the the rural woman who often bears the brunt of it all. Fulani women. From a research I conducted from 1998 to AMINU W.Aztim GUMAU 1999, I discovered that this industry provides employment to about 2,650 Fulani women per day per local government Aminu Waziri Gumau is senior lecturer in the department of area in the Northern-States. However, the Fulani woman's Estate Management, School of Environmental Technology, mean income from this industrrx is about 5,508 Naira a . Federal Polytechnic, in Bauchi, Nigeria 36 Developmcnt Outreach a>R1,1) B AN K IN'III III KNONW7LEDGE RESOUTRCES Lookingfor development injormation, networking t - THE BENTON FOUNDATION opportunities, likentindedpartners. a professional exchange? , ' - '"'' _ seeks to shape the emerging Reaching those goals is as close as your computer screen. A communications network of development websites will takeyou, to the four - -. environment and to corners of the worZd and will put -ou in tonch with a [ demonstrate the value of multicultural cornucopia of knowledge. communications for solving social problems. .,, ,. .7 . . - The KNOWLEDGE ECONOMY WEBSITE provides information Visit: www.benton.org ._ . - . on the World Bank Institute's --.-.-,-.- Knowvledge for Development .-._ '__Program, iluding ti The ASSOCIATION FOR information on a variety of PROGRESSIVE --= - -'' services/events that have been COMMUNICATIONS defends developed to help developing countries take advantage of - and promotes non- the knowledge revolution. Click on "Useful Websites" for commercial, productive online a list of hundreds of' links. space for NGOs and .__________________________ ____________________ collaborates with like minded Visit: www.developmentgateway.org/topic/index?page-id=3719 organizations to ensure that the information and communication needs of civil society are considered in telecommunications, donor, and m . '- ; The ORGANIZATION FOR investment policy. ECONOMIC COOPERATION AND DEVELOPMENT (OECD) provides Visit: www.apc.org ,member governments with a setting in wvhich to discuss. - develop, and perfect economic , , , iEARN is a non-profit and social policy. It collects data, , , organization, founded in 1988, monitors trends. and forecasts economic developments. bthat empowers teachers and 'young people to work together Visit: www.oecd.org . - .: on line. via a global telecommunications network. iELARN has pioneered online ENTOVATION INTERNATIONAL LTD. .... : school linkages to enable is committed to enhancingthe a students to engage in prosperous sustainability of meaningful educational projects. enterprises around the world throughthe optimal flow of Visit: www.iearn.org P*!0 -l -'' . I k-nowledge in innovation svstems. Entovation already has a Knowledge Irmiovation ntliodolug, anid is lintegrally . ,x* *s. X INTERNATIONAL WOMENS connected to industrialized and developing nations of the world. TRIBUNE CENTER (IWTC) is an l ____________ NGO that facilitates and Visit: www.entovation.com ' '1 enhances telecommunication development worldwide by dI Q toIM offering. organizing, and THINK TANK focuses on the information dimensions of | coordinating technical international development cooperation, illustrating how cooperation and assistance investments in knowledge can strengthen the capacities of activities. IWTC is dedicated to achieving women's full organizations. The site contains links to case studies and participation in shaping a development process that is illustrations of practical tools, approaches, and strategies. just. peaceful and sustainable. Visit: www.oneworld.org/thinktank/id * Visit: www.iwtc.org A | u + " " " 37 THE WEALTHY WORLD: THE GROWTH AND IMPLICATIONS + ENABLING KNOWLEDGE CREATION: HOW TO UNLOCK OF GLOBAL PROSPERITY. byJohn C. Edmunds and Karen THE MYSTERY OF TACIT KNOWLEDGE AND RELEASE kfaccaro. John Wiley & Sons. 2000 THE POWER OF INNOVATION, bly Georg Von Krogh, et al. Oxford University Press. 2000 World wealth creation exceeded $2 trillion per month in 1999. The This book provides new concepts potential for world wealth might be about how knowledge in as high as $500 trillion or $83.333 organizations can be created and for each person on Earth. The book '; used for competitive advantage bv explains the reasons for this describing knowledge -enabling increase and its implications in a conditions. It discusses practical world whose financial systems are approaches to the amorphous, becoming increasingly unified. It constantly evolving human realm lays out a key component of the of knowledge, and offers approaching world economy, I S pragmatic guidelines on how to including the impact of the global rise of technology and become a learning organization. interconnectivity and the implications of these factors on The real source of sustainable advantage, the book claims. global wealth. is the continuous creation of new knowledge. BREAKING THE DIGITAL DIVIDE: IMPLICATIONS FOR CHALLENGING KNOWLEDGE: THE UNIVERSITY IN DEVELOPING COUNTRIES, by Elena Mafurelli. ed., et al. THE KNOWLEDGE SOCIETY, by Gerard Delanty, Commonwealth Publications, 2001 Open UniversityPress, 2001 This book presents the results of an extensive studv Drawing from current debates in of the digital divide, the growth of the Internet, social theory about the changing online education. health informatics. the net and Challenging nature of knowledge, this book the economy, regulation of the Internet and much Knowledge t | offers a most comprehensive more. Individuals, organizations, and governments ivonlpdge Scite i sociological theory of the with a specialist interest in the transition to an university. Delanty views the information society and/or knowledge economy university as a key institution of will find this book timely. /2 modernity and as the site where knowledge, culture, and society interconnect. He assesses the THE SOCIAL LIFE OF INFORMATION, byJohn Seel Brown and question of the crisis of the Paul Duguid. Harvard Business School PTess. 2000 university with respect to issues such as globalization, the information age, the nation state, academic capitalism, The Social Life of The authors plunge into the gap cultural politics, and changing relationships between Information between the hype of the research and teaching. .-_ 4 Information Age and its reality. Brown, the chief scientist at Xerox and the director of its WHERE ON EARTH ARE WE Research Center, and Duguid, a GOING?, b.Maurice Strong. # 4 x_historian and social theorist, Texere, 2001 measure how IT interacts with the social fabric. Thev cast their The book is a vivid portrait of gaze on many trends and ideas, the world stage, giving a such as software agents. the thoughtful account of the electronic cottage. and the rise of knowledge scenario that lies ahead for the management. Their aim is to help remedy the tunnel Earth by the year 2031 if human vision that prevents technologists from seeing the social consumption and pollution context that their ideas must ultimately inhabit. continue to occur at their 38 Development Outreach WORLD BANK INS I'I'UTE current rates. The author explains how he came by his THE 2000/2001 ASTD DISTANCE LEARNING YEARBOOK: opinions and how he became an authority on the THE NEWEST TRENDS AND TECHNOLOGIES, byKaren subject. Maurice Strong's apocalyptic prophesy for the Mantyla, ed. McGraw-Hill Professional Publishing, 2000 future-environmental disaster, global warming, reemergence of diseases, and political turmoil-is a call Distance learning is the hottest to action for all who care about the state of the earth in 'I l-L trend in the training industry the near future. His goal is to shape a peaceful and 2 0 0 0/2 0 0 1 today. But rapidly changing equitable future for all humankind. ASTD technology and powerful new ISTA NCE developments make it difficult I NG for human resources REPUBLIC.COM, by Cass R. Sunstein, Princeton University GI K professionals and trainers to Press, 2001 B OK stay current in the field. Now a $AnD single annual reference brings -------- -- -------- - The author focuses on the K A R E N NI A N r Y 1L A together "the best of the best" increasing volume of extremist articles and information, voices that have found a forum summarizing the state of the distance learning field. This on the Internet, and expresses book includes information on creating distance learning concern about a new Babel proposals and pilot programs; Internet-based training, obfuscating information, videoconferencing, and other technologies; setting up and rather than enhancing it. administering a program; career development for republic cor I He weighs free speech against the trainers, and more. caOS SlunSeinj need for meaningful and responsible communication. His prose is clear and accessible-the kind of reasoned E-LEARNING: STRATEGIES FOR DELIVERING KNOWLEDGE discourse that he values and wants to preserve. IN THE DIGITAL AGE, byMarcJ. Rosenberg. McGraw-Hill Sunstein proposes a program of government- Professional Publishing, 2000 sponsored public media spaces which, although unlikely, points to some serious problems that we M,,k, p RosrNBVRi "If there is any reason to fear e- have to confront. learning, it is that we will fail to understand why we are doing it. This book combines the right INSTRUCTIONAL AND COGNITIVE IMPACTS OF amount of reflection on why with a WEB-BASED EDUCATION, by BeverlyAbbey, ed. heavy dose of sound advice about Idea Group Publishing, 2000 SrrsElsE how to. It has a lot in common KNOULMoGE with its subject. It is just what we Web sites are increasingly being need just in time" (John W. Cone, used by educators in place of vice-president, Dell Learning, traditional content media and T ' Dell Computer Corporation). , hstmdndmicapif, Ih Ihxws$ofWeh -WEducaf instructional approaches, such Rosenberg presents all aspects of e-learning from the K 4 atwiy~ey as texts and lectures. This new process of learning to technical deployment, and gives the .. f: 0 , 0 .m. teaching philosophy has led to providers a good set of resources to deliver knowledge nF 'Ghw ,&v2 a myriad of questions concerning electronically. i i L instructional design principles, C, I learnersi cognitive strategies, human- Internet interaction factors and instructional characteristics of Web media that transverse political, geographic and national boundaries. This book is a compendium of materials by noted researchers and practitioners that addresses national and international issues and implications of Web-based instruction and learning. F A 1 L 2 0 0 1 39 OCTOBER 2001 6 geforum@ilo.org. www.ilo.org 4-6 International Youth Conference 15-19 IWA 2no - Berlin World Water Congress Tigertops,Chitwan.Nepal wN-v.environmental center.com wwwAy.iepal.org, Ghauyen Lai Shresthai 17-19 r.nd World Knowledge Forum, Seoul. Korea Secretary-General chauven@col.com.np, www. wkfo rum. org iyccn@hotmail.com, samrat@col. com.np 22-23 The Stop '[ B Partners' Forum Washington, DC 5-9 World Food Summit Rome, Italy ww-w.stoptb .org food- summit@fao.org, Awww.fao. org 24-27 World Education Forum Porto Alegre, Brazil 7-9 EDventure's 12th Annual High-Tech Forum, Berlin w-ww forummundialdeeducacao.com.br w-kww.edventure-comrhtforu m 25-27 Fourth Water Information Summit Panama City, 9-13 FourthbWTO Ministerial Conference Doha, Qatar Panama www.waterweb.org w-w-w.-wtodoha.org 27-31 ioth International Conference for People Living with HIV/AIDS Port of Spain, Trinidad DECEMBER 2001 w-w.gnp plus.net 29-31 World Economic Forum East Asia Economic I World AIDS Day. Geneva, Switzerland. Summit 2oot Hong Kong, China Andrew Doupe doupea@ounaids.org, ww-w.unaids.org www.weforum. org 9-12 GDNET Third Annual Global Development Network Conference Rio de Janeiro NOVEMBER 2001 wAww.gdnet.org, info@gdnet.org. 9-13 i2th International Conference on AIDS and STDs 1-3 ILO Global Employment Forum in Africa Ouagadougou. Bourkina Faso Geneva. Switzerland 4 cismagoci@cenatrin.bf . D E V' E L O P N t E N 'I' 1 uv tretac Subscription Order Form Please pr|nt or type faell informaron 2 NAME TITLE __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~~ Y E S, sig n m e u p ~ ORGANIZATION _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ for Devel0pment ADDRESS___ for just $24 :0000;0ti CITY AND STATE OR PROVINCE ( f ou r : i s s u e s00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 p e r t0 $ 0 C O U N T R Y calefnda year)* ZIP / POSTAL CODE 'Note fPlease nioteatsubscriptionas are PHONE for a calendar year (JanuayDembr). 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Washington, DC 20433 USA 1Ist Internabonal Workshop on Enhancing Training Quality Through Customer Service (QCS-1): 4th Trainers' Workshop on Caring for Clients Before, During and After Training Improving Training Quality (ITQ-4) through Ba I, Indones a: June 5-1 1, 2002 Interactive Learning Technologies and The EXCEED YOUR CLIENTS' EXPECTATIONS: Distance Mentoring w Woerld SATISFIED CUSTOMERS WILL BECOME February-December 2002 s Bank YOUR REPEAT CLiENTS & BEST SALES AGENTS ______ World Bank Institute (WB )/the World Bank in partnership with the University of Surabaya, The ARh Indonesia ws jo at y organ ze th s QCS-1 Workshop as collaborative earn ng opportunity for - *I W iII* tra n ng execut ves, managers & practit oners to d scuss concepts/methods for creative customer *. / L,, J i fo rid care and personalized c ent sernvice app cable to train ng institut ons and services/products. Bi ank In a comperttive giohal training market of the 21st century it Is not enoigh for tra n ng inst tutions to only provide high qual ty instruction or technical contents del very, Poor y managed training nstitut ons wh ch do not prov de qual ty and persona ized cus tomer service before, during, and after tra ning, are unlikely to survive. Only by prov d ng train ng clients and their employers with a memorable tota " learning exper ence o r r x I I NI C I ri T I TI IT I C NI which exceeds the r expectat ons, can we expect such sat sf ed customers to become STO0 r 1 u u T- I- I IN I IN G I IN S I I UTI I O IN ,,repeat" c ients and "Knowledge Champions". FROM BECOMING A DINOSAUR Fo fAther irformatc or a this toirksohp and/or c, ortamn the Appilca-non Form, p ease contant Ronny Adhikarva Eric Wibisono Wor d Bank Institute (WBIlyThe World Bank, in partnership with University World Bank snincte (WBI) Otfice of Inernatonal Affairs Science Malaysia (USM), National Center for Supercomputing The8 H d Ree naN w. rya Kal rungkut Applications/University of Illinois, and Asian Institute of Techno ogy (AIT), Wash ngton. DC 20433, USA Surabaya 60293, INDONESIA will organize this ITQ-4 workshop as a collaborative peer learning opportu- Fax: (1-202) 522-1492 Fax: (62-31) 298-1301 n ty for serior trainers to study and work together, through real and virtual E-mail: radhikarya@woridbank.org E-mail: ew bisonoQia.ubaya ac id group nteractions, to improve their mastery of noovative training design, Workshop Website: www.worldbank.org/wb /qcs-1 curriculum development, interactive learning methods and technologies Workshop Sponsors applicationis. This probleini-solvirig arid output oriented learning program will be delivered in 5-phases: 0/12ios6rs - ~@)~ ~ 0G3 KOMPAS @ Phase-1: Pre-Workshop Internet/Web-based Briefing & Discussion RadrS,IIw Ba, tp : a~> ,h LIt'L7A TFLKOM (4 weeks starting February 4, 2002 at own institut on/home-base) Phase-2: Peer Learning & Group Training Activity ID KO N414M (Xmas ;