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| In this present day and age, intellectual capital has increasingly taken centre stage in the global economic theatre (Commons, University of Erfut) |
There was a time when progress in the world was measured by
how much output countries could produce, be it cotton, cars, raw minerals,
gross domestic output, et cetera. I
think this philosophy was most pronounced immediately after the industrial
revolution took off in Great Britain in the 19th century. So much
that it really didn't matter whether you're a communist or an uncaring
capitalist, if you didn’t make your quota then someone suffered the consequences
(be it dismissal or worse).
Countries strived for better production in larger quantities
for commerce and trade while seeking means to control as much of the natural
resources as possible through sheer military and political might. But while all
this was happening something else was occurring in the background. An
exponential increase in the rate of discovery was taking place. It would have
been impossible to power the industrial revolution without a knowledge base in
steam engines and thermodynamics. The same goes for all the engines that came
afterwards. Similarly, material sciences gave birth to new forms of metal
alloys including steel which was used to make bigger and stronger structures
like bridges and skyscrapers. A combination of the two and improved
understanding of timekeeping allowed the creation of the railway and
steam-powered ships which revolutionised commerce and trade throughout the
world.
Other discoveries like the telegraph and, eventually, the
telephone gave rise to the still powerful modern north Atlantic trading bloc.
The practical advantages of instantaneous communications continue to be seen
today with the internet, satellite and telecom industries. The knowledge market
is born. Knowledge is being created every day, bought, sold, transmitted,
gathered and organised every second. New methods of recalling, organising and
manipulating data for whatever means and purposes are required every day by
individuals and institutions and this is exactly what powers Silicon valley and
the like. Our brains are designed to comprehend things in the now with a
limited number of variables. But unfortunately for us, the world is composed by
thousands of variables that act in a non-linear manner. It’s a complex system
we’re dealing with here and our heads are simply unable to take it all in
without making serious asinine acts like the 2008 global financial meltdown.
And even with the assistance of humongous computing power, we are about as
graceful as a bull in a china shop. Wisdom is required to navigate this complex
world of ours.
Wisdom and knowledge in its many forms can be found in the
most unlikely of places. Most assuredly our ancestors were as smart as we are
today. They could observe, formulate hypotheses and test them for predicted
outcomes. The only difference is that with time, we have made the process into
an art. Whatever our forefathers could do, we can now do better. A perfection
of thought and acts that has allowed our race to prosper and grow at rates
never before experienced.
It has also brought forth a paradigm shift. As I said in the
beginning of this essay, progress was once measured by the output of heavy
industries. Now, however, heavy industries do not necessarily imply progress
(to the delight of green activists I’m sure!). What we now have today is a knowledge economy that now measures
progress primarily by how much intellectual capital you have. The rest can be
outsourced thanks to a highly networked economy. Such a system has allowed even
small countries like Israel, Rwanda and Switzerland to become highly developed
(or fast growing) economies. With limited resources, they as well as many other
institutions including companies are left sinking their money into people’s
education. The knowledge that grows from such investments is harvested and used
again for more growth. This time and era clearly belongs to the harvesters of knowledge.
