Badawi urges Arabs to transform commodity-based economy to knowledge-based

"Information and Communications Technology is a great leveler," Badawi said while pointing out that any nation which has a strong human capital base that is literate and is skilled in ICT, can compete with the most advanced states.

"People are the main drivers in a knowledge-based society," declared the Malaysian Prime Minister.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Minister of Defence, who had brought attention to the critical importance of developing human capital in his opening address.

In his keynote address on 'Human Development: The Engine of Economic Growth', the Malaysian Prime Minister said: "Knowledge, innovation and technology are the main drivers of a nation's economic growth."

Building blocks
He pointed out that ordinary people at all levels of society are the greatest resource or asset. "People are the building blocks of all that we do. Machines can be fixed, systems and policies may be revamped and organizations can be restructured. However, the success or failure of any endeavour is still largely dependent on the people involved.

"A First Class infrastructure is of no value if the man in charge has a Third Class mentality," Badawi said.

He said the world today faces many challenges - social, political and economic challenges. He referred to the Arab world and pointed out that only six of the 22 Arab nations are featured on the World Economic Forum's Growth Competitive Index. "Of these, only the United Arab Emirates was ranked within the top 20 at Number 16. The remaining five countries were ranked 28 and below.

Narrow-based economy
"This is an astonishing fact considering that two-thirds of the world's oil supply - a major source of economic wealth - comes from this region," Badawi said.

He said: "Because the majority of Arab countries are blessed with natural resources, they have concentrated only on a very narrow-based economy focused on oil or tourism. This arrangement may not last for very much longer unless immediate and effective measures are taken to address the situation," Badawi said.

"The economic foundations of Arab society and civilization will be gravely threatened once resources are depleted or as alternative forms of energy are explored and developed," he warned.

Education systems
The Malaysian Prime Minister said the Arab world needs to improve education and its systems. "The Arab world has made great strides in education since the 1960s. However, the problem is the quality of the education. This is compounding the difficulty of the Arab region in transforming its economy to become knowledge-based."

Badawi pointed out that adult literacy rate in the Arab world at only 63.2 per cent in 2002, is unfortunately, one of the lowest in the world. The average for developing countries is 76.7 per cent.

Women's participation
"People are the main drivers in a knowledge-based economy and women are no less important than men," said Badawi to applause. But he pointed out that this potential of one-half of the developing world's society has not been realized and called for greater participation of women in economic streams.

"The asset most precious to all nations - whether large or small, rich or poor - is the people. No investment is more rewarding or productive than investing in our own people. Ultimately, it will be the people who will help restore pride and dignity to the Arab world," the Malaysian Prime Minister pointed out in conclusion.

The Arab Strategy Forum has six Organising Partners and two Media Partners. They are Emirates National Oil Company Ltd (ENOC), Abraaj Capital, PricewaterhouseCooper, DaimlerChrysler, National Bank of Dubai and Gulf News, in addition to Media Partners Al Sharq Al Awsat and CNN. The Arab Strategy Forum will provide valuable insights, which will help in improving the status of the Arab World.