Academic journal article Economics, Management and Financial Markets

Economic Growth in Knowledge-Based Society

Academic journal article Economics, Management and Financial Markets

Economic Growth in Knowledge-Based Society

Article excerpt

ABSTRACT.

In the present paper, we are going to analyze the concept of economic growth as a factor in the revitalization of the knowledge-based society. Although the whole economic and human development occurred under the auspices of knowledge, making progress possible in all its aspects and particularities, nowadays, its dynamics has changed the priority order of the factors of economic and social growth and development, or has brought forth modifications in their structure, in order to make easier their adaptation to the new realities. Though we are witnessing now some obvious changes in the economic and social pathology, growth remains a phenomenon that is both fundamental and systematically analyzed, being regarded as the engine phenomenon for the future progress.

JEL Classification: O10, O40, 049, Rl 1

Keywords: knowledge based society, knowledge, economic growth, economic development

INTRODUCTION

This paper aims at analyzing the extent to which economic growth determines transformations at the economic and structural levels in the current society: the knowledge-based society.

Over the paper, we want to demonstrate that economic growth has had a major impact, being the primary factor of progress, not only at the economic, but also at the social level, by increasing the standard of life, of culture and of civilization, as a result of the access to the those products that are absolutely necessary to facilitate the work, and to varied and complex information, especially in the developing countries. Like any other processes, economic growth has advantages and disadvantages, according to the perspective we adopt: that of a developed or that of a developing country.

At the end of the 20th century, most of the industrialized countries opted for a development based upon communicational and informational infrastructures, that was transposed into a dynamism of production that led to a saturation of the internal markets and to the rise of pressure upon the developing countries to open their frontiers for the great companies of the developed countries activating in the fields of telecommunications, communications and information technology, so that they could capitalize their surplus of production and maximize their profit, prolonging at the same time the life duration of the products. This combination of circumstances substantiated by the augmentation of the extent of economic growth and by the technical-scientific progress favored the acceleration of the process of economic globalization, significantly increased the degree of dependency between countries (a not necessarily favorable aspect) and entailed significant changes and new challenges1.

Within the framework of the knowledge society, the process of economic growth needs modifications of the ruling framework, with a view to increasing the market access for the capital, the goods, the services and the labor in everybody's advantage.

The methods I use in this approach are interpretative, specific to fundamental research, of both deductive and inductive type. I used, as research methods, both observations, seizing economic reality in different countries, and comparisons, that I introduced into a descriptive approach.

ECONOMIC GROWTH VS. ECONOMIC DEVELOPMENT - CONCEPTUAL DIFFERENCES

The process of economic growth has always preoccupied the theorists and the entrepreneurs, ever more nowadays as the conclusion was reached that this is the basis of development and of progress at the organizational, macroeconomic, regional and world levels.

For a long time, growth was assimilated to development, the two processes (or phenomena) being equaled. Over time, the delimitations have become increasingly clearer and better argued, so that today we do not take growth for development any more.

Leszek Balcerowicz, one of the theorists that have dealt in detail with the economic development, makes the difference between this phenomenon and that of growth. …

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