The importance of knowledge for wellbeing of society in the contemporary world

Abstract

Following the recent wave of globalization, the possession of different types of knowledge became even more important for economic development than the possession of physical resources. The ability of a society to adopt existing and create new knowledge thus gained fundamental importance for its wellbeing. In this paper, we identify important aspects of the relationship between education, creation of knowledge, economic growth, as well as both material and immate?rial wellbeing of a society. We describe potential problems that prevent societies from maximizing the benefit from the effort its members invest in acquiring knowledge. The problems of failure of the national markets for education as well as the global migrations which lead to drain of knowledge towards economically highly developed countries are especially analyzed. In the long run, they lead to a decline in both national competitiveness and different aspects of the immate?rial wellbeing. As the basis for solving these problems we propose a combination of economic theory and the concept of solidarity between more and less devel?oped countries, individuals and societies of their origin, respecting the free will of individuals.