UNUnited Nations Economic Commission for Europe

Press Release

[Index]      

UNECE Transition Economies
on their Way to a Knowledge-Based Economy

Geneva, 5 November 2002

Nine out of twenty-seven UNECE economies in transition (Armenia, Belarus, Bulgaria, Georgia, Kyrgyzstan, Latvia, Slovakia, Russian Federation and Yugoslavia) participated in the project “Towards a Knowledge-Based Economy” launched by the Commission earlier this year.

The country assessment reports prepared by the national experts revealed diverging development patterns in all the areas, constituting the foundation of a new economy: the information system, the innovation system, the ICT physical infrastructure, and human resources development. They also exposed various digital gaps within and between the economies in transition and between them and the most developed countries of the UNECE region.

At the same time, the country reports provided strong evidence that such gaps are reversible. They testify that any country, regardless of its size and the initial level of the development of the major components of the knowledge-based economy, could close digital gaps. This could be achieved by effectively utilizing internal comparative advantages, complementing them, if necessary, with external factors, which are, however, subject to the availability and accessibility. An instructive example at point is the Latvian case.

Latvia has been able to carve a niche in the emerging European knowledge-based economy effectively employing the local arsenal of means, qualified labour force, good schooling system, educational and scientific tradition and potential, desire to join the European Union on a more equal footing, the proximity to and support of the neighbouring Nordic countries.

Armenia, although after a prolonged delay, is now trying to do the same by focusing on the intellectual determinant of the knowledge-based economy, thus utilizing its highly qualified pool of scientists and engineers inherited from the past.

The challenges facing most of the countries that participated in the project are formidable, and the major constraining factor identified by the country assessment reports is the low level of per capita income. There is an urgent need to find an innovative solution to this problem. The unprecedented development pace of a global knowledge-based economy is such that it makes the risk of marginalization extremely high. This is equally true for the countries with a relatively large potential.

One country stands aside the sample. This is the Russian Federation. Its huge potential is both an advantage (a large pool of scientists and engineers; the size of the population, the average level of education of the population, etc.) and a constraint (the size of the territory; the size of the population, etc.). As a result, the Russian Federation is ahead of the rest of the sample countries by some criteria (like the production of ICTs or the absolute number of people being digitally literate and having access to ICTs) and behind of some of them by other criteria (like the total number of PC per pupil). This country, by the law of large numbers, is a strong candidate for the leadership in the areas relevant to the knowledge-based economy and could have an enormous impact on the neighbouring CIS countries by providing the missing elements needed for their development and participation in the emerging pan-European knowledge-based economy. The Russian Federation could benefit from both sides of its potential: the supply side (or the production of ICTs) and the demand side (or the consumption of ICT products and services).

Rapid changes unfolding in most countries of the sample evidence that the understanding of the importance of the intellectualisation of economic activities and its consequences for the entire modus operandi and modus vivendi of humanity is here. What still needs to be worked out is the dilemma as old as the human civilization itself – how to free this new knowledge-based society of all traditional social ills, including inequality, inequity and exclusion. In other words, how to bring in all the members of the society into the virtual reality.

It is expected that the rest of the UNECE economies in transition will follow the example over the next year. Developed countries of the UNECE region are also invited to participate in the project and submit their national reports. They could serve as a reference source for policy-makers of economies in transition as well as of other countries, who are looking for suitable policy options.

The reports of the nine countries and the Regional Assessment Report can be seen on the web site of the Coordinating Unit for Operational Activities:

http://www.unece.org/operact/


For further information, please contact:

Mrs. Larissa Kapitsa, Director,
Coordinating Unit for Operational Activities
United Nations Economic Commission for Europe
Palais des Nations, Office 436
CH - 1211 Geneva 10, Switzerland

Phone: +41(0)22 917 42 21
Fax: +41(0)22 917 01 78
E-mail: [email protected]

Ref: ECE/OPA/02/16