11 Competitiveness of MICs Cairo Conference March 2008 What is needed is not aid, but building the the competitiveness of the MICs This requires investment in S&T and Innovation STI Knowledge as a Regional Public Good Good models are out there. No need to necessarily re-invent the wheel ! The two institutions are developing strategies to support the MICs in this regard

22 Years Growth Growth due mainly to Investment in Human Capital, Science and Technology & Innovation Growth due mainly to Exploitation of Raw Materials and Natural Resources Ghana South Korea $150 $24,600 $1,400 $100

33 Korea Area: 98,477 sq. km; Arable Land: 17% Population: 49 million (early growth rate of 0.42%) Schooling: Primary 99%; Secondary 95%, Literacy 98% Mining and Manufacturing 26%; Services 67% Nominal GDP: $788 billion in 2005, estimated at $897 billion in 2006 Economic Growth rate of 4.5% average Natural Resources: Limited Coal, iron, limestone, kaolinite and graphite Exporter of Electronic products: Semiconductors, Cellular phones & Equipments, Computers, Ship building, etc. 11th Largest Economy in the World

44 Ghana Area: 238,538 sq. km; Arable Land: 70% Population: 22 million (yearly growth rate of 2.7%) Schooling: Primary 70%; Junior Secondary 24%; Senior Secondary 6%; Literacy 62% Mining and Manufacturing 16.2%; Services: 5.9% Nominal GDP (2005): $9.5 billion Economic Growth rate of 4.3% average Natural Resources: Gold, Timber, Diamonds, Bauxite, Manganese and Fish Exporter: Cocoa, Gold, Timber, Diamonds, Manganese

55 Cases of Growth Other Similar Examples of Income Per Capita (est. in 2007): Morocco: US $3,300 Tunisia: US $7,500 Egypt: US $5,400 Algeria: US 8,100 Malaysia: US $14,400 Japan: US $33,800 In most of these countries, industry and services accounted significantly for the growth These require skills and innovation