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Building Capacity For Digital Development In The Arab World: The Role Of Education

The digital economy is identified with the 4th industrial revolution reflecting the importance of the digital technologies for development. In particular, the 4th industrial revolution holds prospect for developing countries to benefit from new opportunities brought by the new digital technologies spurring knowledge creation, innovation, skill intensification of the work-force and productivity enhancement. Economic development is a process of structural transformation that requires knowledge creation, knowledge sharing and knowledge acquisition. Digital technologies facilitate access to global markets allowing developing countries taking advantage of the information age to strengthen knowledge creation, innovation diffusion and information dissemination. Education plays critical role in building capacity for development in the digital economy. Participation in the digital economy requires new managerial and technical skills to stimulate technological learning and facilitate cooperation and collaboration. Education increases the country stock of capital essential for building capacity for innovation and supporting sustainable development. In other words, education drives knowledge creation, technological breakthrough and new product development. This paper focuses on the role that education plays in strengthening the fundamentals for digital economy. In most Arab countries, development is factor-driven -- dependent largely on natural resources and labor. This paper examines the contribution of education to development in the era of the 4th industrial revolution.