Information and communication technologies : a World Bank Group strategy

Knowledge has always been central to development. It is necessary for markets and governments to function, for the process of innovation, and for the application of new ideas. The green revolution that has more than doubled yields of staple crops in Asia and South America over the last 50 years, is an example of the development and application of knowledge through a range of local, national, and international institutions making a dramatic impact on the incomes of the poor. Between 1973 and 1994, the average real income of small farmers in southern India increased by 90 percent, and that of the landless by 125 percent, largely because of the introduction of labor-intensive, high-yielding crop varieties. The successful use of knowledge lies behind much of the growth of the East Asian 'miracle' countries over the past half century. Conversely, weaknesses in the application of knowledge are a major factor behind stagnation in income growth in Africa. The accumulation of physical capital-machinery, roads, and buildings, explains less than 30 percent of the variations in growth rates around the world over the past 40 years. Much of the rest is accounted for by differences in the growth of educational opportunities, and in the diffusion and application of knowledge. Forty years ago, Ghana and the Republic of Korea had virtually the same income per capita. Today, Korea is approximately six times richer, and more than half of that gap can be attributed to Korea's greater success in acquiring and using knowledge.