Lebanon is slipping behind other countries in the region and around the world in developing a knowledge-based economy, according to a recent study by the World Bank.

The World Bank's Knowledge Economy Index, released at the end of March, showed that Lebanon had fallen 16 places in the global rankings to 66th out of 140, and had slumped four rungs on the Middle East and North Africa (MENA) ladder to eighth out of the 17 regional countries surveyed.

The World Bank's previous knowledge economy study was conducted in 1995, at a time when Lebanon was only just emerging from 15 years of civil war. While the results of the study reflect the advances made by other countries in developing their knowledge economy base, pushing Lebanon down the rankings, they can also indicate that both the public and private sector have done little over the past two decades to help the country's cause.

The survey assessed each country's level of development in creating an environment conducive for fostering economic growth through the use of and access to knowledge. With a global score of 5.03 points out of 10, Lebanon came in under the international average of 5.93 points and below the MENA average of 5.30 points.

While holding its third-place ranking in the MENA region and scoring 56th worldwide for education and human resources development, Lebanon placed 75th globally in the economic incentives regime sub-index. The country rated 71st in terms of having an effective innovation system of firms, research centres, universities and consultants that could access global knowledge, adapt it to local needs and create new technology.

Somewhat better was Lebanon's ranking of 62nd on the information and communications technology (ICT) sub-index, though it was still below the global average for availability of ICT to support the effective creation, dissemination and processing of information.

Difficulties in providing effective internet service may be one of the things that is holding Lebanon back in the knowledge economy stakes. It was only in 2007 that digital subscriber line (DSL) services came to Lebanon, while asymmetric digital subscriber line (ADSL) services started last May. As such, Lebanon was one of the last countries in the Arab world to adopt what had become the standard technology for internet services.

Long delays in privatising Lebanon's two mobile phone service providers and in establishing a third licence have also placed restrictions on new investments and limited the expansion of internet and communications services.

Another contributing factor is the under-funding of Lebanon's education system, as well as challenges in attracting and retaining educational staff. On April 3, nearly 100,000 educators from schools and universities went on strike seeking an improvement in their wages and conditions. Salaries for teachers have not been increased since 1996, resulting in a high turnover of staff and loss of expertise.

Factors that limit the wider access to and implementation of technology, such as state control of land lines and red tape hindering the establishment of new companies, have not been fully addressed. In addition, a failure to enforce copyright protection means that many firms are left exposed to piracy and losses brought on by infringements, in turn discouraging investments in knowledge-based industries.

According to Nassib Ghobril, the head of research at Byblos Bank, Lebanon's fall in the rankings was due to a failure to provide the resources needed to make the knowledge economy a key contributor to economic growth.

"We need to create the right environment," he said in an interview with the local press. "Other countries in the region are focusing on it... The knowledge economy will play an increasingly important role to drive economic growth. The models for economic growth have shifted from the last century."