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The value of knowledge-based economy [Business]

The value of knowledge-based economy [Business]

The Morning Call

We are already in the middle of the year and usually people have embarked on holidays. Benchmark journals and large audit groups engage in a sort of classification to evaluate companies, the most profitable in the world, the most richest and so on.

The 2018 winners will be announced withins days. But let us spend a little time on the 2017 charts of auditing firm Price Waterhouse Coopers (PwC).

Relative to market capitalization, considered the market value of a publicly traded company, in 2017 according to Price Waterhouse Coopers (PwC).

Image 1 CAPITALIZATION

Let’s look at this picture together and realise that the top 5 is dominated by American companies whose main resource is human intelligence.

Apple

Alphabet (formerly google)

Amazon.com (which also deals with the distribution of goods and services among others)

Berkshire Hathaway (Finance)

Facebook

These companies sell phones, computers, software, promote the link, communication between individuals.
There are no mining or oil companies in the top 5.

The list is dominated completely by knowledge-based companies, the imagined and virtual.

For Algerian intelligence specialist Idriss Aberkane, the brain is about to supplant natural resources to become the true wealth of societies that still want to count on the contemporary world.

“I would like to remind you that the natural resources of a nation is not the key to its economic growth.When we observe South Korea carefully, it exports more than Russia.
South Korea is a very small country compared to Russia but today South Korea is very rich . It exports more than Russia, while Russia has natural gas and oil (. ..) Despite that, South Korea exports more than Russia. Because it exports its intelligence, It sells us Samsung, LG hard drives, software. But in the 1950’S AND 60’s, they were not good in these areas.They developed very late so it is important to note that knowledge represents more wealth than oil and other resources and those who sell knowledge are richer than those who sell natural resources”.

Interesting isn’t it! Even Fortune magazine’s 2017 record confirms the dominance of the knowledge-based economy.
For the 6th year running, Apple has been ranked as the most profitable company in the world. It’s net profit for 2016 was over $ 45.6 billion dollars. A figure which is very amazing for us Africans. Apple’s profit is 78 times the budget of Nigeria in 2017. According to the African Development Bank (ADB), Nigeria is the richest country in Africa based on their Gross Domestic Product (GDP) figures.

IMAGE 2

We are fortunate in Africa that thanks to ICT, we can make a qualitative leap and play on equal terms with the major industrialised nations.
The right environment must be created: – invest in infrastructure – fiber optic cables – implement significant legislations – encourage and support start-ups who need to financial assistance to grow.

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The Morning Call

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The Morning Call

The Morning Call is about you. We want to share your opinions on our programme. If you want to contribute to The Morning Call, here are the best ways to get in touch : For more details on how to contribute, click here.