Guest blog written by Fred D. Koilor
This is a blog series written by the alumni of the Leading Economic Growth Executive Education Program at the Harvard Kennedy School. Participants successfully completed this 10-week online course in July 2020. These are their learning journey stories.
What if this was a one-week journey? Well, many things about the Leading Economic Growth (Online) course probably would not have been the same. Firstly, I can certainly say that students would not have had ample time to digest the course materials and make adequate appreciation of knowledge acquired during the ten weeks. Secondly, the one week on campus would not have given us the opportunity to reach out to institutions and development stakeholders for vital pieces of information, which helped to shape our understanding of the lecture materials discussed during the course. During the ten-week period, I had the opportunity to meet with two departments within the Central Bank of Liberia (CBL) for data and analysis on aspects of my growth strategy. Thirdly, the span of ten weeks provided enough time for the lecture materials to be sequenced into ten weekly modules. This approach enabled the students to navigate the course in a consecutive order of logic, chronologically sequenced from week one through week ten. More importantly, it made learning a lot easier than it would have been in only a week.
In spite of my economic background, this course offered some key insights, which are not only novel, but also shaped my understanding of economic growth, especially considering the growth challenges of my country, Liberia.
The Scrabble Theory of Economic Development provides a fundamental explanation for why some countries are rich and others are poor. With the help of the scrabble metaphor, the theory explains, in very simple terms, that the wealth of nations or prosperity of economies is determined by the level of societal knowhow, which is represented as letters used to produce products, represented as words. Knowhow, described as what the society knows how to do, is not measured by the depth of knowledge individuals in the society possess, but the diversity of knowledge spread across different individuals at the societal level. With a higher level of diverse knowhow, otherwise known as letters, more complex products, otherwise known as words can be produced, thus increasing the complexity of goods and services produced by a nation. The intuition of this theory explains, to a large extent, why Liberia is economically poor, even though it is enormously endowed with natural resources. Liberia has vast deposits of rubber, iron ore, timber, gold, and palm oil, but these resources are mostly exported to other countries in their raw or unprocessed forms because the population does not have diversified knowhow (letters) to produce products of more complexity (words) that could generate higher export earnings, reduce or cancel out our balance of payments deficit, generate more foreign exchange, increase employment opportunities, spur growth of industrial activities, and improve the macroeconomic outlook. Liberia needs more knowhow to manufacture more complex products from its natural endowments. Local manufacturing will generate more jobs locally, add value to our local products, increase their worth as exports, and positively impact many macroeconomic indicators, including balance of payments, net foreign capital inflow, international trade, etc.
Continue reading Economic Growth in Liberia: 10 Weeks to Remember