Knowledge key to success in globalisation

Fortune favours the bold, according to Professor Lester Thurow of the Sloan School of Business.

In his keynote address to the fourth annual MIT Pan-Arab Conference 2003 held here yesterday, Thurow said fortune will only favour those who acknowledge the need to take a bold step such as joining the process of globalisation, where knowledge is the key to success.

Thurow examined the need for globalisation and the need to build a knowledge-based organisation.

He cited the example of Bill Gates who takes great pride in his new identity as chief knowledge officer of Microsoft.

His job is to control the channel of knowledge at Microsoft, said Thurow, who emphasised the need for companies to have their own knowledge officer in a key position.

Making a case for globalisation, Thurow said it's time for the global community to decide whether to join the process of globalisation or to stay away from it and fall behind.

He cited the case of China and India. Both countries opened up their economies and have gained from the integration of their economies with the world economy.

Despite having the largest share of the world population, China has witnessed a phenomenal nine per cent annual growth in its economy in recent times.

It has manufactured the products required by the developed countries and attained a higher level of growth in the process.

On the other hand, countries from Sub-Saharan Africa have hardly achieved anything because they have refrained from the process, noted Thurow.

Any attempt to oppose the process of globalisation will mean losing out on foreign trade and foreign direct investment for the global community, he said.

With nearly 80 per cent of the world's gross domestic product in the hands of the developed world, which is estimated at $31,000 billion, it would be difficult for any country to isolate itself from the process of globalisation.

A simple willingness to participate in the globalisation process is not enough.

In fact, it's just the beginning of a long process in which a lot more is needed.

According to Thurow, resource mobilisation, effective leadership, motivation for the people and social capability are some of the important factors which will contribute towards overall success for these countries.