KNOWLEDGE ECONOMYKNOWLEDGE ECONOMYBKE 2614. Year 2008BKE 2614. Year 2008

PRESENTED BY:TAN WENN YIT1061102248MICHELE CHANG YEN LING 1061102233BURHAN ADLI BIN YUSOFF 1061102507GOH YUE RUI 1061102305WONG NGIE JOONG 1061102103LOW AI LIN 1061102202NIK SAUFI BIN NIK MURAD 1061102534MUHAMMAD ZUHRI BIN HAMDAN 1061102460 CHEE SUET LENG 1041111312YIN SHAO HUAY 1041111306

INTRODUCTIONINTRODUCTION

UZBEKISTAUZBEKISTANN

Formal Name: Republic of Uzbekisten (Ozbekistan Respublikasi)Capital: Tashkent

A dry, landlocked country

of which 11% consists of intensely cultivated, irrigated river valleys.

UZBEKISTAUZBEKISTANN

INTRODUCTION TO INTRODUCTION TO UZBEKISTAN UZBEKISTAN ECONOMYECONOMY

Primarily on agriculture Relies mainly on commodity production : cotton, gold, uranium, and natural gas.Cotton: - world 2nd largest exporter - 5th largest producer - major source of export earningsGold: - major producer of gold - largest open-pit gold mine in the world.Ranking : 113th out of 177 countries in HDI (Human Development Index)

INDICATORSINDICATORS

Socio-Political Indicators Uzbekistan UK

Birth rate (per 1000 people) 26.45 10.65

Death rate (per 1000 people) 7.62 10.05

Net migration rate (per 1000 people) -1.3 2.17

Infant mortality rate (death per 1000 live births)

67.78 4.93

Life expectancy at birth 65.38 years 78.85

Literacy (age 15 and over can read and write) 99.3% 99%

Unemployment rate 0.8% 5.4%

Population below poverty line 33% 14%

Total population 28,268,440 60,943,912

Economic Indicators Uzbekistan UK

GDP- real growth rate (total GDP/no of population)

9.5% 3.1%

GDP- per capita $2300 $35100

GDP Composition by sector Agriculture Industry Services

29.4%33.1%37.4%

0.9%23.4%75.7%

Inflation rate (consumer prices) 12.3% officially 2.3%

Info-Structural Indicators Uzbekistan UK

Telephone- main lines in use 1.793 million 33.602 million

Telephone- mobile cellular 5.8 million 69.657 million

Internet users 1.7 million 33.534 million

FEATURES OF FEATURES OF KNOWLEDGE KNOWLEDGE

ECONOMYECONOMY

ICTICTDefinition: Includes all technology for

the manipulation and communication of information

A revolutionary vehicle or toolCommunication, information and

knowledge distribution = easier, faster, cheaper

Global village

Allocation of ResourcesAllocation of Resources

Efficient production relies on information and knowledge components

Greater importance is placed on knowledge sector (higher productivity) than agricultural sector (low productivity)

Higher productivity = Higher returns

Increasing ReturnIncreasing ReturnKnowledge workers as key

production factorReducing production costs,

increasing productivity and yields higher return

Advancement of ICT eliminates distance costs

Economies of scales (EOS)

Constant Demand for Constant Demand for Knowledge WorkersKnowledge Workers

Firm’s source of competitive advantageEssential for the growth of the K-

Economy Why?

◦Productivity higher◦Reducing costs, increasing return and profit◦Adds value and wealth creation ◦Producing knowledge goods and services

Knowledge Production, Knowledge Production, Distribution and ManagementDistribution and Management

Knowledge

Created / produced

DisseminatedManaged

efficiently & effectively

Upgraded

Combined

Dominant Role of Service Dominant Role of Service SectorSector

Service sector drives K-Economy Examples: Health, education,

business, etc.Combination of advancement of ICT

and knowledge components enlarge its size

New knowledge is generated

Globalization Globalization

Emergence of a collaborative and competitive global economy

Markets are globalizing rapidlyNo boundariesIdea-driven innovation cycles are

crucialICT makes all markets interconnected

and more competitive

CHALLENGESCHALLENGES

GeographyGeographyTopography

◦Land use– 80% desert◦Environmental factors

Inadequate sewage disposal Soil contamination

Transportation & Transportation & TelecommunicationsTelecommunications

Landlocked◦Hard to reach high seas

Internet◦Prices to access is high

Government & PoliticsGovernment & Politics

Lack independence judicial and legal system

Abuse of powerFreedom of press refrained

SocietySocietyEducation & Literacy

◦Lack of budgetary support ◦Private school are forbidden

Health◦Entitlement to free medical attention

affected by bribery◦Insufficient medical supplies◦HIV, drug abuse

EconomyEconomyLabor Market Risk

◦Insufficient training◦Lowly paid wages◦Not able to meet market demands ◦Limited jobs in private sector

60% rural area◦Agriculture cannot develop

National SecurityNational SecurityTension with neighboring

countries◦Kyrgyzstan◦Tajikistan

Terrorist activities

RECOMMENDATIONSRECOMMENDATIONS

Lean towards a more democratic system- independent judicial and legal system,

more privatizations, lesser government control, etc…

Improve network and telecommunication- Lessen internet and telecommunication control,

increase line of communication, increase technology, etc…

Improve international connection- more communication with outsider,

more treaty, etc…

Improve education system.- Reformation,

early education system, post-graduate education, etc…

Research & Development.- Research old problems,

develop new solutions, improve service sectors, lands, etc…

CONCLUSIONCONCLUSIONNeed to improve the country system.Accept international connection.Knowledge must be disseminated

throughout the country.To emerge as a knowledge based

economy.

THE ENDTHE END

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