Transition towards a Knowledge Society: Malaysia and Indonesia in Comparative Perspective
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This document compares the progress of Malaysia and Indonesia towards becoming knowledge societies against countries like South Korea, Germany, and the Netherlands. It finds that while Malaysia and Indonesia have increased investments in education and technology, they still lag significantly in knowledge indicators compared to other developed countries. The transition to a knowledge economy benefits those with high skills but risks exacerbating inequality as well as a "knowledge gap" between developed and developing nations without sufficient policies to promote widespread access to education, information, and innovation.
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Transition towards a Knowledge Society: Malaysia and Indonesia in Comparative Perspective
- 1. Transition towards a Knowledge Society: Malaysia and Indonesia in Comparative Perspective Hans-Dieter Evers by: Bobur Nazarmuhamedov
- 2. On the Way towards a Knowledge Society? How far have Malaysia and Indonesia approached the status of aHow far have Malaysia and Indonesia approached the status of a Knowledge Society?Knowledge Society? Comparisons have to make sense, especially if the comparisonComparisons have to make sense, especially if the comparison extends beyond a binary comparison.extends beyond a binary comparison. We have selected Korea, a country that was often mentionedWe have selected Korea, a country that was often mentioned together with Malaysia as one of the Asian tiger economies andtogether with Malaysia as one of the Asian tiger economies and the Netherlands and Germany for comparison.the Netherlands and Germany for comparison. The Netherlands is comparable to Malaysia in terms of itsis comparable to Malaysia in terms of its population and shares a common history with Indonesia;population and shares a common history with Indonesia; Germany can be compared to Malaysia in terms of its land sizecan be compared to Malaysia in terms of its land size and is the largest economy in the European Union, as isand is the largest economy in the European Union, as is Indonesia in ASEAN. Both Germany and the Netherlands areIndonesia in ASEAN. Both Germany and the Netherlands are part of the world’s largest economy, the European Union.part of the world’s largest economy, the European Union.
- 3. Knowledge Society IndicatorsKnowledge Society Indicators Indicators to capture specific aspects of knowledge societies, especially on the scope of knowledge specific to knowledge societies, have not yet been developed. The Malaysian Economic Planning Unit has calculated a “Knowledge Development Index” to monitor Malaysia’s position in relation to other countries. The United States and Japan top the ranking list. Looking at the five countries under consideration in this paper, Malaysia and Indonesia take the 17th and the 21st place out of 22 countries in the year 2000.
- 10. Strategic Groups in a Knowledge SocietyStrategic Groups in a Knowledge Society The introduction of ICT (information and communication technology) into industrial production and even into the service sector is changing the occupational structure and culture of the emerging knowledge society. The supermarkets have been built in the wake of industrialization and have replaced many of the small stores, shop-houses and wet markets where people used to shop in Malaysia and Indonesia. The unskilled workers are replaced by skilled technicians servicing the computer driven equipment, new industries have sprung up to supply the machinery for the high-tech mega- stores, and software houses apply knowledge to produce the software to drive the organisations.
- 11. Strategic Groups (cont.)Strategic Groups (cont.) Social contacts in markets vanish; the senses are no longer stimulated by the foul smell of markets, the feel of freshly slaughtered chicken, the movements and colours of the hustle and bustle of the early morning market. All this richness of feeling, sound and smell is replaced by the virtual world of the internet, the coldness of the plastic packaging, the computer generated voice and the ‘animation’ of dead images.
- 12. Who gains and who loses in a KS?Who gains and who loses in a KS? Gold has been one of the great and shining resources of the pre- industrial and early industrial periods. When rubber became an essential item for the production of motor cars, the plantation boom in Malaya and elsewhere enticed the imagination of investors, claiming as much land as they could lay their hands on. The manhunt for intellectual talents is on, ICT specialists and bio-informatics scholars are recruited and induced to cross national borders to accept new and better-paid positions. Recruitment companies for highly skilled labour have sprung up in Kuala Lumpur, Jakarta and Singapore wherever knowledge is produced.
- 13. Who gains and loses (cont.)Who gains and loses (cont.) Though it is extremely difficult to come up with any predictions on who is going to gain and who is going to loose in an emerging knowledge society, at least a likely scenario can be developed. If managers and financial analysts, but also the “labour aristocracy” of highly skilled workers were the gainers of the late stages of industrialization, then the “knowledge workers” are likely candidates for gaining access to the additional wealth created by the knowledge economy.
- 14. Strategic Groups of Knowledge WorkersStrategic Groups of Knowledge Workers
- 15. The Knowledge Gap and the Digital DivideThe Knowledge Gap and the Digital Divide Today the advancement of information technology, the reduction of transaction costs, and the infusion of new knowledge into the production process allow mergers and alliances creating mega-companies. These companies control budgets exceeding those of many governments. Among the biggest one hundred economic units in the year 2000 are 49 countries and 51 corporations (Der Spiegel 23-07-2001).
- 17. The Knowledge Gap (cont.)The Knowledge Gap (cont.) the benefits of globalisation and the “knowledge revolution” have remained in the hands of the managers and shareholders of large corporations and the OECD states, mainly the US. The gap between rich and poor nations has widened leaving one rather sceptical whether the knowledge gap will be closed and the digital divide bridged. The glamour of dot.com companies has waned and the computerisation of the poorer sections of all societies has been minimal. Patents and Nobel prizes are concentrated on a few countries and regions.
- 18. ConclusionConclusion Much research is needed to explore the reasons behind the unequal distribution of knowledge. Governments and civil society organizations have to decide how to channel the stream of knowledge into their own backyard, how to utilize local knowledge and local cultural traditions, and how to gain a competitive advantage by maintaining their cultural identity. Knowledge does not consist of ICT alone. Without an appropriate social, political, and cultural context a knowledge economy will not flourish.