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Human capital is what counts at all times

That conversation though sparked a couple of questions in my mind: can an oil economy and a knowledge-based economy coexist? Or does an oil economy, or any natural resource-fuelled one, precede a knowledge-based economy? Here’s the thing. When the economy is driven by revenues from oil or other natural resources, those revenues are mainly channelled into one, spending in the economy, which could be to create jobs, to increase demand via pay raises, and to spur growth ultimately; and two, saving for the future and investing in it. For the sake of this article, I am interested in further elaborating on the second part, especially that such savings and investments could deter a country’s resolve in attaining a knowledge-based economy. …

To eventually create a knowledge-based economy, a country must invest earlier on in its human capital, with revenues from natural resources being a facilitator rather than a reason to sit back and relax. With or without natural resources, developed human capital in different fields are the true economic drivers. And in its pursuit, countries must know what skills and specialisations they would require in the coming decades. Laying the ground for tomorrow’s balanced, continuous economic growth by today’s implementation of policies that would warrant that those skills are home-grown. A knowledge economy is one that is driven by people who understand what it takes to move away from oil and other natural resources, not desire to further invest in them. A knowledge-based economy is also one where different policies are scrutinised via a rigorous cost-benefit analysis that does not take revenues from oil and other natural resources for granted.  Rest

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