Around the Globe,Technology Widens Rich-Poor Gap

by Philip Emeagwali

Oil has made us billions and fuelled our economic stability, but oil has also become the bane of our existence. For some, it is a curse that has caused poverty and corruption, but for others it is an essential source of untold wealth and power. But as the gap between rich and poor countries continues to expand, it is clear that intellectual capital and technology rule the world, and that natural resources such as oil, gold, and diamonds are no longer the primary determinants of wealth.

Surprisingly, nations with few natural resources demonstrate greater economic growth rates than OPEC countries. Japan’s economic growth, driven by technological superiority, outpaces that of Saudi Arabia; South Korea is growing faster than oil-rich Nigeria; and Taiwan’s economy has moved well beyond that of oil-rich Venezuela. The United States and Norway are also rich in oil, yet their staggering economic growth comes from intellectual capital.

In reality, it is not money but intellectual capital that drives prosperity. More important, perhaps, is the reality that poverty is driven and sustained by a lack of intellectual capital. The intimate relationship between intellectual capital and economic growth is as old as humanity itself, and is well illustrated by this parable from ancient Babylon (modern-day Iraq). A man asked his children:

“If you had a choice between the clay of wisdom or a bag of gold, which would you choose?” “The bag of gold, the bag of gold” the naïve children cried, not realizing that wisdom had the potential to earn them many more bags of gold in the future.

Seven thousand years later, Iraq — the cradle of civilization — has its own private bag of gold as it sits perched atop the world’s third largest oil reserves. Meanwhile, Israel, tucked away in the hostile terrain of a barren desert, has the clay of wisdom — the weightless wealth of intellectual capital embodied in the collective mind of its people.

The striking economic gap that persists between rich and poor nations has increased sevenfold over the past century to what is now an all-time high. The accumulation of intellectual capital by rich nations has helped broaden this gap because it has enabled them to control technology and collect hidden taxes from less affluent nations. For instance, Nigeria pays a 40-percent “royalty” tax on its petroleum revenues to foreign oil companies that are ripping out its family jewels — the huge store of wealth in its oilfields. These oilfields started forming when prehistoric, dog-sized humans — our common ancestor with the apes — walked African grasslands on four legs.

It’s a shocking reality, but the deep oil reserves laid down by Mother Nature millions of years ago and nurtured through the millennia in Africa have been whittled away within decades. And, for the dubious privilege of surrendering its natural resources forever, Nigeria is required to pay half its petroleum revenue in the form of “royalties” to the rich kids on the global block, the United States and the Netherlands. That oilfield has been exchanged for a bowl of porridge, and the black gold that should serve the underserved in Nigeria is helping wealthy Westerners get wealthier.

Today, half the world’s population — three billion people — live on an average of $500 a year. In contrast, Bill Gates earns $500 every second. By controlling technology and taxing computer users, Gates has become wealthier than each of the 70 poorest nations on earth and using his financial might has conquered more territory than Genghis Khan, Julius Caesar and Alexander the Great combined. 

While Bill Gates is the new millennium’s Prince of Technology, he is by no means the first to have taken on the huge potential offered by the realm of technology. The Romans used roads and military technology to expand their empire. And, for centuries, Britain ruled a quarter of the Earth due to its unparalleled ability to command maritime technology and conquer the Seven Seas.

Britain undoubtedly established itself as the world’s first superpower through its rapid and ruthless colonial expansion program. The British raised the Union Jack over Canada and Australia, India and Hong Kong, Egypt and Kenya, and countless other countries — even the United States. The Union Jack cast its shadow in every global time zone, giving rise to the saying, “The sun never sets on the British Empire,” a fact that was cold comfort to the colonized nations.

In the same way, the United States has embraced its technological supremacy, both offensively and defensively, to build its own global empire without a physical presence in any of its “colonies.” The sole remaining superpower is at the forefront of every major technological advancement, which it has used to become deeply embedded in three-quarters of the globe. The US has accomplished a virtual economic colonization manifesting its presence throughout the globe by harnessing the power of technology and capitalizing on its clay of wisdom.

Africa’s inability to realize its potential and embrace technology has left it at the mercy of the West. The time has come for Africa to seize the day and resist the efforts of America and others to leave their imprint and plunder its natural resources.

Numerous examples throughout history support the idea that technology can be used as a tool of oppression. And there’s little doubt that America’s technological advancement has allowed it to exploit natural resources around the world. This is particularly evident in Africa, where the US is exploiting oilfields beneath the pristine rainforest — and being rewarded with a 40-percent tax at the expense of the African people. This lends credence to history’s assertion that those who control technology oppress those who do not, eventually enslaving them and, finally, wielding power around the globe.

Transcribed from a speech delivered by Philip Emeagwali at the African Diaspora Conference in Tucson, Arizona. The entire transcript is posted at emeagwali.com.

Philip Emeagwali has been called “a father of the Internet” by CNN and TIME; praised as an “unorthodox innovator [who] has pushed back the boundaries of oilfield science” by a leading European oil and gas industry journal; extolled as “one of the great minds of the Information Age” by former US president Bill Clinton, and voted history’s 35^th greatest African by New African. He won the 1989 Gordon Bell Prize, the Nobel Prize of supercomputing.

Robot  # 1 | 17.01.2009 10:45

Around the Globe,Technology Widens Rich-Poor Gap images/stories/Authors/Emeagwali.by Philip Emeagwali Oil has made us billions and fuelled our economic stability, but oil has also become the bane of our existence. For some, it is a curse that has caused poverty and corruption, but for others it is an essential source of untold wealth and power. But as the gap between rich and poor countries continues to expand, it is clear that intellectual capital and technology rule the world, and that natural resources such as oil, gold, and diamonds are no longer the primary determinants of wealth. Surprisingly, nations with few natural resources demonstrate greater economic growth rates than OPEC countries. Japan’s economic growth, driven by technological superiority,...Read the full article.

G-force  # 2 | 17.01.2009 13:00

Yes, I have been of this opinion many times, and this is even reflected in some of my posts. The world has moved away from a physical platform-led growth and development to a non-physical platform-led growth and development. Countries that have become giants have been largely without the most coveted natural resources in the world as of the time. At least, a very recent example is China which we all know is not the world's highest producer of oil, nor blessed with the largest oil reserves, but currently turning the world awash with China-mania, a phenomenon simply anchored on a technological development platform, stemming from a higher form of self, mental and talent consciousness. Good news for Africa: We have the ability to replicate and even exceed the progress made by China and other Asian countries as well Western powers. Bad news for Africa: We don't have a present institution that supports this sort of non-physical platform led growth and development. The solution: We need to create such an institution right now. In modern day events powered by globalization, the slogan is " Innovate or die !! "

Igboamaeze  # 3 | 17.01.2009 13:52

Prof, Small small abeg. How u go post 4 articles within one week? How u wan make we take digest am? Abeg, small small...

Danmeka  # 4 | 17.01.2009 14:52

Thanks for the article Prof Philip Emeagwali,it is a shame that your country Nigeria does not even value your expertise. A country where the basic infrastructures is nothing to write home about, even our President will be going abroad for treatment. Why can he treat himself in Nigeria? Does he not trust our doctors? "Our enemies are the political profiteers, the swindlers, the men in high and low places that seek bribes and demand 10 percent; those that seek to keep the country divided permanently so that they can remain in office as ministers or VIPs at least, the tribalists, the nepotists, those that make the country look big for nothing before international circles, those that have corrupted our society and put the Nigerian political calendar back by their words and deeds." How can we use technology to reduce poverty in our country when the common barber does not have power to do his business,our schools and universities that produced Emeagwalis, Soyinkas, Achebes,etc is nothing to write home about that even our graduates still want to come abroad to broaden their education. Until we get the basic infrastructures right, forget about reducing poverty

charles4u  # 5 | 18.01.2009 07:45

....Some people keep talking everyday about issues of Nigeria while some dont care, some people keep thinking they can make corrections while some dont care, some people are trying to see how we can turn thing back around while some dont care. What can I say ? Nigeria will collapse while we keep talking and I know whatever happens next will still become history. ...Tech is just for people to have something to do, not to make everybody equal so its normal some getting richer while some getting poorer. The case in Nigeria is purely government/leaders.

HONEST  # 6 | 18.01.2009 11:12

What does the future hold for a country that does not value education? what does the fure hold for a country that does not value and celebrate intellectuality? how can we be better when we are ruled by intellectually retarded, morally bankrupt and socially malevolent fellows? how can we attain technological prowess as witnessed in china when our tertiary institution is in a dire state of disrepair? Most importantly how can we be better when we fold our arms, complain and talk without a follow up action to realize our dreams of an ideal society "a country we can be proud of". the time has come for us to build a country we can be proud of and it will take our collective responsibility. YES WE CAN

chykeforever  # 7 | 18.01.2009 14:13

I have a Proposal.....

charles4u  # 8 | 18.01.2009 14:45

=chykeforever;314697>I have a Proposal..... For Nigerians or ?

emenanjo  # 9 | 19.01.2009 10:18

Some months back, there was a documentry on one of the Uk sky channels, on China. In that series it was revealed that the total number of graduates produced annually by {ONLY} the departments of Engineering in China's universities, is greater than the total number of graduates produced by universities in the whole of Europe. Translate this into economic performance and we can see why the Chinese are becoming a giant that even America is beginning to shiver.

charles4u  # 10 | 19.01.2009 11:09

=emenanjo;314944>Some months back, there was a documentry on one of the Uk sky channels, on China. In that series it was revealed that the total number of graduates produced annually by {ONLY} the departments of Engineering in China's universities, is greater than the total number of graduates produced by universities in the whole of Europe. Translate this into economic performance and we can see why the Chinese are becoming a giant that even America is beginning to shiver. Population - good governance/leaders. And mind you, you can never compare Europe with China even if China seems to be economically growing. Europeans focus and work on ALL aspects...I can give you endless list.