World Bank suggests EU candidate countries make use of new technologies to improve economic competitiveness
The World Bank has released a report declaring EU's candidate countries need to acquire and use knowledge and new technologies if they are to reach the economic competitiveness levels of existing EU members when the join the Union. The report, 'A preliminary strategy to develop a knowledge economy in European Union accession countries', was prepared for the Knowledge economy forum, organised by the World Bank in coordination with the European Commission and the Organisation for economic cooperation and development (OECD). It involved government officials, academics, entrepreneurs and non-governmental organisations (NGOs) from 10 EU candidate countries and representatives from international organisations, and was held in Paris on 20 to 22 February. 'In addition to capital, labour and land, knowledge has become an important factor in determining economic growth in the advanced economies of the 21st century,' said Johannes Linn, the World Bank vice president for Europe and Central Asia. 'If Europe is to become the most competitive knowledge economy in the world in ten years, as stated in the 2000 European summit in Lisbon, the challenge we face is to work together as partners in making this a reality for all EU members.' 'Tapping into the knowledge economy goes beyond investing in communications and information technologies,' added Kevin Cleaver, World Bank Director and author of the report. 'It means having the capacity to use knowledge effectively by putting in place the right economic and institutional framework, giving people the skills they need to exploit these opportunities, and funding local innovation centres that guarantee the continuous flow of fresh ideas.' The World Bank reports that the EU accession countries are well placed to take advantage of the knowledge revolution on account of their trained labour force, considerable capacity in science and technology, relatively well developed communications facilities and an increasing openness to foreign trade. On the other hand, research and development (R&D) expenditure, enrolment in tertiary education, computer availability and the presence of Internet hosts are all low in accession countries compared with their EU counterparts. The report recommends that, in order to benefit optimally from their resources, the candidate countries need to create the necessary conditions to stimulate the effective use of knowledge. That is to say, an economic and institutional framework that promotes the efficient use of knowledge and the thriving of entrepreneurship, an educated and skilled population, a dynamic information infrastructure to facilitate the effective communication, dissemination and processing of information and a network of companies and research centres ready to tap into the growing stock of global knowledge. The World Bank is assisting some Central and East European countries to develop and implement their national knowledge economy strategies by promoting dialogue and information sharing with countries that are at the forefront of the knowledge revolution, such as Ireland, Finland and South Korea.