Knowledge Society and the Knowledge Gap

Knowledge has been widely recognised by economists as the most important factor of production in a “new economy”. The production and utilisation of knowledge is therefore essential for development. Some countries, Malaysia among others, have embarked on an ambitious plan to use knowledge as a base for economic development, by-passing earlier stages of industrialisation. Some commentators have, in contrast, asserted “that it is doubtful that the knowledge revolution will let developing countries leapfrog to higher levels of development” as “the knowledge economy will actually expand the gap between rich and poor” (Avinash Persaud in Foreign Affairs 80, 2, 2001:108). The paper will discuss this controversy by showing that the development of a knowledge society and an epistemic culture is a precondition for knowledge-based economic growth. Socio-economic indicators will be used to investigate whether or not the existing knowledge gap is widening between Southeast Asia and the OECD countries. Factors explaining the situation will be outlined.