**2. Defining the knowledge society**

Knowledge has been widely recognised by the economists as the most important factor of production in a "new economy". The production and utilisation of knowledge is, therefore, essential for development. In other words, knowledge is the most important factor of production and its growth is essential to propel a country into self-sustained growth. The information society as well as the knowledge society is seen as the successor to the industrial society. The term, information society was introduced in the early 1970s by Yojeni Masuda in a book: *The information society as post-industrial society*. In this book, he referred to information society as the highest stage of societal evolution, seen in analogy to biological evolution. However, similar concepts had already been discussed in the 1950s and 1960s. For example, Daniel Bell was the first person to put forward the concept of a "postindustrial society" in 1959. In 1979, Bell renamed the post-industrial society as information society. Similarly, behind Bell's contribution was the discovery that between 1909 and 1949, in growth rates among the non-agricultural sector, skills contributed 87.5% towards growth, while labour and capital contributed a mere 12.5%.

In the early 1990s, the Institute of Information Studies made up of the Aspen Institute and other agencies in the United States published an almanac in 1993-1994. Its main title was the *Knowledge-based economy: the nature of the information age in the 21st century.* The United Nation endorsed the term immediately afterwards, and gave it a clearer definition in 1996. It defined a knowledge-based economy as an economy whose most important elements are the possession, control, production, and utility of knowledge and intellectual resources. The knowledge society produces commodities of high knowledge value. Similarly, the term "knowledge-value society" was introduced by Taichi Sakaiya (1991, 2001). The term was defined as "a society where the value of knowledge is the primary source of economic growth and corporate profits". Ever since then, most countries, especially in the developing countries, where knowledge gap (K-Gap) tremendously exists, have been striving not only to reduce this gap but also embarking on an ambitious plan to use knowledge as a base for economic development. World Bank (1999) observed that education, especially tertiary education, remains one of the crucial variables for achieving a knowledge society. This is because tertiary education contributes to social and economic development through four major missions:


Tertiary education, these days, is much more diversified than in the time past when it was more commonly referred to as higher education symbolised by the universities. Today, tertiary education encompasses new types of institutions such as polytechnics, university colleges, technological institutes, and more recently, open and distance learning. Suffice it to

process of open and distance learning institutional development to meet the challenges of

Knowledge has been widely recognised by the economists as the most important factor of production in a "new economy". The production and utilisation of knowledge is, therefore, essential for development. In other words, knowledge is the most important factor of production and its growth is essential to propel a country into self-sustained growth. The information society as well as the knowledge society is seen as the successor to the industrial society. The term, information society was introduced in the early 1970s by Yojeni Masuda in a book: *The information society as post-industrial society*. In this book, he referred to information society as the highest stage of societal evolution, seen in analogy to biological evolution. However, similar concepts had already been discussed in the 1950s and 1960s. For example, Daniel Bell was the first person to put forward the concept of a "postindustrial society" in 1959. In 1979, Bell renamed the post-industrial society as information society. Similarly, behind Bell's contribution was the discovery that between 1909 and 1949, in growth rates among the non-agricultural sector, skills contributed 87.5% towards growth,

In the early 1990s, the Institute of Information Studies made up of the Aspen Institute and other agencies in the United States published an almanac in 1993-1994. Its main title was the *Knowledge-based economy: the nature of the information age in the 21st century.* The United Nation endorsed the term immediately afterwards, and gave it a clearer definition in 1996. It defined a knowledge-based economy as an economy whose most important elements are the possession, control, production, and utility of knowledge and intellectual resources. The knowledge society produces commodities of high knowledge value. Similarly, the term "knowledge-value society" was introduced by Taichi Sakaiya (1991, 2001). The term was defined as "a society where the value of knowledge is the primary source of economic growth and corporate profits". Ever since then, most countries, especially in the developing countries, where knowledge gap (K-Gap) tremendously exists, have been striving not only to reduce this gap but also embarking on an ambitious plan to use knowledge as a base for economic development. World Bank (1999) observed that education, especially tertiary education, remains one of the crucial variables for achieving a knowledge society. This is because tertiary education contributes to social and economic development through four major missions:

The building of knowledge bases (primarily thro ugh research and knowledge

The dissemination and use of knowledge (primarily through interactions with

The maintenance of knowledge (inter-generational storage and transmission of

Tertiary education, these days, is much more diversified than in the time past when it was more commonly referred to as higher education symbolised by the universities. Today, tertiary education encompasses new types of institutions such as polytechnics, university colleges, technological institutes, and more recently, open and distance learning. Suffice it to

the 21st century knowledge driven society.

**2. Defining the knowledge society** 

while labour and capital contributed a mere 12.5%.

The formation of human capital (primarily through teaching),

development),

knowledge).

knowledge users), and

say that open and distance learning, as a component of tertiary education, is much more crucial to the realization of knowledge society. If this is to be accomplished, it simply connotes that open and distance learning must be re-engineered, in its institutional development, to meet the challenges of the 21st century. This paper thoroughly discusses the major characteristics that a 21st –century distance and open learning institutions are expected to possess in a knowledge-based society.
