Knowledge-Based Economy and Youth Unemployment: The Role of the 21st Century Nigerian Universities Graduates

Introduction

Citizens’ economic empowerment is one of the major challenges facing most developing countries such as Nigeria. The visible problems of economic development in developing countries (Nigeria inclusive) which are equally the characteristics of underdeveloped economies enter-play and are responsible for the continuous existence of undesirable economic underdevelopment features such as high rate of labour unemployment, high poverty level, technology backwardness and low level of industrialization, high level of illiteracy, under-developed agriculture practices (e.g subsistence agriculture), balance of payment deficit problem, low per capita income, high population growth rate (Dan-Abu, 2016).

The economic underdevelopment problems associated with youth explosion and high level of unemployment among universities graduates in Nigeria have resulted into socio-political and economic problems such as high rural-urban migration in search of white-collar jobs, underemployment and illegal immigration across national and continental boundaries, drug trafficking, arm robbery, frauds, prostitution, incessant ethno-religious crisis e.t.c.

Unemployment was strange to Nigeria before the 1980’s. It was therefore not a headache to the nation as to how to solve this problem. But after the 1980’s, the need for human resources development started receiving serious attention after decades of neglects of the role of knowledge-based economy which in part has led to the growing unemployment challenge in the country today.

To reverse this trend, especially as it affects university graduates’ unemployment, the government of Nigeria in 2006 introduced entrepreneurial education as a compulsory curriculum in University with the aim of preparing graduates for entrepreneurial success through private sector initiative and participation. To reap the benefits of knowledge-based economic development strategies and reduce youth unemployment in the country, policy makers, educationists and of course Nigeria university graduates must differentiate, develop and continually apply knowledge that are new to the world, new to their  industries and new to the firms.

WHAT IS A KNOWLEDGE-BASED ECONOMY?

Although the meaning of what a knowledge-based economy constitutes varies, most definitions emphasize the importance of knowledge-based activities; others emphasize innovation and technological improvement. A successful knowledge-based economy in other words is characterized by close links between academic science and industrial technology with greater emphasizes placed on innovation for economic growth and competitiveness, increased significance of education and lifelong learning, and greater intangible investments like Research & Development and human capital development.

A knowledge economy is one that creates, disseminates, and uses knowledge to enhance its growth and development (World Bank, 2010). A knowledge-based economy in other words relies primarily on the use of ideas rather than physical abilities and on the application of technology rather than the transformation of raw materials or the exploitation of cheap labour in the production of goods and/or services.

Gerbrand Tholen, (2010) the fact is that the things we buy, and the methods we use to make them, rely more and more on the level of our knowledge (or technical know-how) and technology and less on manual labour. The 21^st century world economic development is increasingly dependent on production and services that are based on knowledge-intensive activities that contribute to an accelerated pace of technological and scientific advance and rapid obsolescence.

The World Bank Institute (WBI) has defined the knowledge economy as consisting of four pillars, which if strengthened can result in growth and development to include.

1. Business Environment: An economic and institutional regime that provides incentives for the efficient creation, dissemination, and use of existing knowledge.

2. Education and Skills: An educated and skilled population that can create and use knowledge

3. Innovation System: Firms, research centers, universities, consultants, and other organizations that can tap into the growing stock of global knowledge and assimilate and adapt it to local needs and use it to create relevant new knowledge

4. Information and Communication Infrastructure: This can facilitate the effective communication, dissemination, and processing of information.

Other key emphasis of the concept in other words is concerned with how well economies use appropriate knowledge to improve their productivity and increase the welfare of their citizenry.

We shall continue with review of related literature in the next post.