Question

According to the World Bank, what are the four pillars supporting human capital-based economic development in a knowledge economy?

1. An educated and skilled labor force capable of continuous learning and effective application of skills.
2. A robust information infrastructure that ensures easy access to ICT, lowering transaction costs and improving information exchange.
3. An effective innovation system that fosters high levels of innovation within firms, industries, and nations.
4. A supportive institutional regime that provides incentives for entrepreneurship and the use of knowledge.
5. Abundant natural resources and a large manufacturing base.

• A. None of these
• B. 2 only
• C. 1, 4
• D. 1, 2, 3, 4

Answer 1

Answer:

D. 1, 2, 3, 4

The World Bank identifies four key pillars for a knowledge economy focused on human capital:

1. An educated and skilled workforce: essential for continuous learning and applying knowledge.

2. Information infrastructure: accessible ICT is crucial for efficient information and knowledge sharing.

3. Innovation system: high levels of innovation are necessary to adapt to global technological advancements.

4. Institutional regime: a supportive environment that encourages entrepreneurship and knowledge utilization.