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Chapter Eight Introduction 8.1 Examining
the Potential for Moving Malawi into a Predominately Information
and Knowledge-base Economy and Society
Although there is no standard accepted definition of what constitutes an information and knowledge-based economy, it could be argued that such an economy should first and foremost be a reasonable high economy dominated by the development, production and the trading in ICT products and services. Furthermore, an information and knowledge economy is likely to be an economy:
It could be argued
that given the above characterization of what constitute and information
and knowledge-based economy and society, there is no doubt that
most of industrially advanced countries will only need to put in
place specific ICT deployment programmes and national information
infrastructure (NII) development programmes to move their advanced
and globally competitive economies into information and knowledge-based
economies. Developing countries like Malawi on the other hand will
however need to do more to achieve the same. 8.2 Assessing
Malawi's Potential to Develop an Information and Knowledge-base
Economy
It will be possible to transform the predominately agricultural and industrially weak economy of Malawi into one dominated by the trading in ICT products and services, without the need for Malawi to be first fully industrialized. This can be achieved mainly through developing the service sector especially the ICT services sub-sector and promoting the development of an ICT industry by putting in place specific policies backed by sound development plans, packages and policy instruments and mobilizing the necessary financial and technological resources to support the development of these sectors.
It is possible for Malawi to develop her economy into that characterized by a large commercial service sector with a reasonably large and vibrant, ICT service sub- sector and industry by putting in place sound sectoral development policies and incentive packages. Full industrialization is therefore not a pre-requisite for developing this aspect of the information economy in Malawi.
It has been acknowledged that: in the emerging technology and knowledge-driven new economic order the most efficient and competitive industrialized economies are those that are moving away from traditional industrial processes and methods of production to the deployment of knowledge-driven or knowledge-programmed processes and methods within their industrial, production and delivery set-ups and systems. Although subsistence agricultural based and industrially-weak economies like that of Malawi lack the necessary resources and know-how to develop and deploy cutting-edge knowledge-driven industrial processes and methods, it will be possible for Malawi to mobilize and train the necessary human resource capacity that will serve as the necessary pool of knowledge and know-how to facilitate the process of developing and supporting a technology-base knowledge-driven industrial sector. In other words, although not industrialized, it will still be possible for Malawi to embark on the process of developing a technology-based knowledge-driven industrial sector with the right policies, programmes and the mobilization of the required financial and technological resources
Malawi's predominantly agricultural economy can be transformed into an economy in which the majority of the working population are either directly or indirectly involved in information and communications related activities without the need to be first fully industrialized The development of sectors like the service sector and ICT industry can for example substantially contribute to increasing the number of the working population involved in information and communications related activities. Furthermore the development of these ICT-based sectors can facilitate the widespread deployment, exploitation and utilization of ICTs in other sectors of the economy which will in turn impact on the number of the working population that are directly or indirectly involve in information and communications related activities.
It will be possible for counties like Malawi to transform their subsistence agricultural dominated economies into that with a modern efficient and competitive agricultural sector with the right policies backed by the mobilization of the necessary financial and technological resources. Full industrialization is therefore not a prerequisite for the modernization of the agricultural sector. Malawi in her pursuit to develop her economy and society into an information and knowledge based economy and society, cannot abandon the agricultural sector which much currently depends on, it must however make this sector modern, efficient and competitive. ----- However, the point have to be made that even such an efficient, modern and competitive agricultural sector cannot be capable of being the engine for accelerated economic growth and development in the emerging information and technological age.
Under-developed economies like those in Africa can with the right ICT policies, plans, packages and the necessary financial and technological resources can be transformed into economies in which a reasonable proportion of the population has access to information and communications technology products and services without the need to be first industrialized. For example, the necessary legal, regulatory and institutional framework necessary for facilitating the development and the provision of ICT services to improve and spread access in the community can be put in place as part of government effort towards this goal. Also, sectoral development policy packages and instruments targeted at the development of rapid growth sectors could lead to the expansion of these sectors which will in turn contribute to the rapid development and growth of the economy to facilitate increased access to ICT products and services by a large section of the population.
It will be possible for Malawi to promote and facilitate the deployment and the exploitation of ICTs in all sectors of the economy and society to facilitate the provision of goods and services without first of all being fully industrialized. For example, this can be achieved through specific policies backed by special programmes, initiatives and incentive packages in the areas of tax and investment promotion incentives and packages to encourage public and private sector organization and business to invest in ICTs to support their operations. A booming economy led for example by the service sector including the ICT service sub-sector as well as the broader ICT industry will also facilitate the spread of ICTs in businesses and organizations as they take advantage of the favourable economic climate to modernize their operations through the deployment and exploitation of ICT products and services.
The Malawian economy can be transformed into an economy in which the provision and delivery of services by government and its administrative machinery are to a large extent facilitated by information and communications technologies without the need to industrialized first. This can be achieved by mobilizing the required financial and technological resources to put in place a programme to modernize their civil and public service, a component of this could be the computerization of all government Ministries, and public organizations.
Without the need to industrialized first it will be possible for developing countries, including Malawi to mobilize the necessary financial and technological resources to build, rehabilitate and expand the information and communications infrastructure of the country to support the development of the economy towards information and knowledge-based economy. Policies could for example, be put in place to promote private sector (domestic and foreign) investment in this sector and putting in place the necessary legal, regulatory and institutional framework to encourage the development and growth of the sector.
Malawi can achieve the goal of becoming a fully literate society by putting in place appropriate educational policies, human resource development policies and programmes and mobilizing the necessary financial and other resources to implement them. Businesses and organizations in a growing economy will also be investing in skill development, especially in ICT skills as they train the necessary manpower for their operations. The Government could also put in special incentive packages to promote this process, which in addition to its other efforts could develop Malawi into a literate society with high proportion of ICT literate without first being fully industrialized
Based on the analysis carried out in section 9.2, without doubts, it will be possible for Malawi to over time transform its predominately agricultural economy and society into a predominantly information and knowledge-based economy (PIKE) without the need to fully industrialize provided:
However, the extent to Malawi will benefit from the information revolution and transform her economy will depend very much on her readiness and capability to develop, deploy and exploit ICTs within the economy and society as part of a comprehensive policy. The role of government is crucial in this respect. The government will have to develop in consultation with key stakeholders the necessary vision, missions and strategies to provide direction as well as provide the enabling environment conducive for the promotion, deployment, exploitation and the development of ICTs to support the socio-economic development efforts in the country. It is also their role to put in place sound socio-economic policies, plans as well as policy programmes and incentive packages and policy instruments that will facilitate the process of accelerated development and economic growth towards an information and knowledge based economy (IKEs) using ICTs. In addition, it is the responsibility of the government to provide the necessary legal and regulatory framework that will facilitate the development of the economy towards an IKE. Also the responsibility of providing good governance and a conducive socio-political environment also lies very much with these governments. The diagram below
provides an illustration of the key factors that need to be taken
on board and addressed to facilitate the process of transforming
Malawi's subsistence agriculture based and industrially weak economy
into information and knowledge based economy through the development,
deployment and exploitation of ICTs. These key factors are grouped
into three broad areas: enabling environmental factors, which need
to be address to provide the necessary enabling environment for
aid the process; facilitating factors ---- for facilitating the
socio-economic process towards an information and knowledge based
economy and society and policy actions, programmes and packages
for aiding, influencing and supporting the development process towards
a PIKE. It is of interest to note that even if the enabling environmental requirements identified in the diagram above were addressed, not very much can be achieved by way of moving the subsistence agricultural economy of Malawi towards a predominately information and knowledge-based economy (PIKE) unless steps are taken to address the other key requirements forming part of the facilitating factors including:
However it is again worth pointing out that addressing the above facilitating factors and requirements, will not necessary guarantee that subsistence agricultural-dominated economy of Malawi will be transformed into a PIKE unless the government put in place relevant policy programmes, incentive packages and policy instruments specially designed for aiding, influencing and supporting the developmental process towards achieving PIKE. Some examples of these programmes and policy instruments are listed in the diagram above by way of an illustration. However, it could
be argued that suitable programme and policy packages can only be
identified and formulated as part of an overall process of developing
comprehensive integrated ICT-led development policy and plans aimed
at transforming the Malawian economy and society. The development
of a suitable integrated framework for guiding such a policy and
plan development process is the subject matter of Part III of the
report. 8.3 Isolating
the Critical Success Factors for Developing and Implementing Malawi's
ICT Policies and Plans
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