Knowledge as a Driver and Facilitator of Change Case Study: Egypt

1. Knowledge as a Driver and Facilitator of ChangeCase Study: Egypt Dr. Khaled F. Sherif Sector Manager Private and Finance Development Sector Unit Europe and Central Asia The World Bank

2. Background • Technological advancements over the previous two decades have had a greater impact on human behavior than all previous developments to that point in history • Within the Middle East, Egypt has always maintained a leading role in terms of development and stability, of which their position on ICT is a prime example • Despite the deliberate progress in moving towards increased knowledge adoption, its monumental impact has induced a state of ‘future shock’ within the general population

3. Bridging the Digital Divide • In 1985, Egypt embarked on a nationwide effort to bridge the digital divide by establishing a network of Information Decision Support Centers • As recently as 2001, Egypt’s internet penetration rate was a meager 1.5%, however, this figure has increased to 2.2% over the between 2002 and 2003 • Moreover, the designed infrastructure means that over 10% of the population currently has access to the internet, although a lack of equipment and awareness means that the majority of them have failed to capitalize on this opportunity

4. Bridging the Digital Divide • As Egypt works towards its goal of developing an information society, it must become an active catalyst in initiating & developing ICT technologies in the Middle East • This can be achieved via a greater focus on commercial and strategic research and development • Specifically, however, an increased focus on the applications and use of knowledge is needed • This will involve a transition from a concentration on providing access to ICT services, to the development of a knowledge management framework which is to underlie the national strategy for development.

5. Building Towards a Knowledge Workforce • Education and the effective use of knowledge is the key to providing individuals and organizations with the ability to compete globally • Egypt benefits from having a highly youthful workforce; one which boasts tremendous potential for the country’s future economic development • In spite of this, the major concern for Egypt remains the need to improve the level of human capital resources within the country. • With knowledge as arguably the most valuable resource in terms of generating economic prosperity in the world today, Egypt significantly lags the developed world in its ability to develop its workforce capacity for knowledge processing and generation

6. The Knowledge Worker • The most fundamental component of a successful knowledge-based organization, economy, or society is the knowledge worker • Knowledge workers are individuals who operate across three dimensions: Knowledge Creation Knowledge Dissemination Knowledge Utilization

7. Egypt and The Knowledge Worker • The process of developing a workforce which is highly comprised of knowledge workers begins with basic education at all levels, and extends further into dimensions related to: • This process begins with basic education and literacy: • In 2003, Egypt’s basic literacy rate was a meager 57.7%, placing it in the lowest 15% worldwide in this category (Six out of ten countries worldwide exhibit a literacy rate above 90%) • With Egypt firmly amidst a critical time in its history, and with the upcoming generation of workers likely to determine the fate of the country’s ability to better utilize knowledge as a resource, the focus will have to be on investing heavily in the country’s future generation, and seeking to improve the literacy rate to one which is globally competitive. Higher Education Lifelong Learning Specialized Training

8. Building Towards a Learning Organization • The process of organizational change is a highly complex and dynamic discipline • The application of the research conducted in this area is very limited in today’s Egyptian organization because of the perceived notion of its lack of transferability to Egyptian companies • This largely stems from the fact that “organizational culture” is at the heart of any organizational transformation process which focuses on building a “learning organization”: • The cultural dimension is one where Egyptian companies (and Middle Eastern companies more generally) differ significantly from the rest of the developed world

9. Building Towards a Learning Organization • The process of creating a learning organization, however, is one which focuses more on the fundamentals of competitive positioning and less on Western norms or ideals • In any competitive economy, the ability to respond faster to market needs, to better address client demand and to better position oneself vis-à-vis their competition is key to success • The challenge is on how to convey this message to Egyptian organizations in a manner which is consistent with their own organizational norms: • Not surprisingly, the reality is that simplifying the vast array of research that has been done in this area and brining it down to its basics is the easiest way for this to be achieved

10. The Way Forward • In the face of a multitude of global, regional and local challenges, the Egyptian Government and private sector have exhibited a growing commitment to the ICT • The focus now must be on leveraging this to better prepare Egyptian organizations and the Egyptian workforce for becoming learning organizations built upon effective knowledge workers • Education will be the key to providing individuals and organizations with the ability to compete globally • In moving forward, Egypt will need to invest more in the application of widely available technologies (and the adoption of research and ideas which are already used today) to enable the country to progress further to improving its knowledge capacity