This World Bank report describes the role higher education plays in building developing countries' capacity to participate in a knowledge-based world economy and outlines policy options to promote economic development. It confirms the shift in the World Bank's attitude to education support as a driver of socioeconomic growth.

The authors ask why higher education is important for development, how developing countries can best utilise their higher education systems, and how the World Bank and other donors can support local governments. They argue that knowledge is essential for development — and higher education is essential to create and apply knowledge.

They conclude that developing countries risk marginalisation because of their weak higher education systems, and stress the need for government and donor support.

These selected proceedings from a regional research seminar in Morocco, hosted by the UN Educational, Scientific and Cultural Organization (UNESCO), examine the state of higher education in Arab states. They highlight the impact of globalisation on local systems and discuss the role of funding agencies in supporting them.

The authors tackle a range of issues including the nature and extent of the 'knowledge gap' in Arab societies, current funding patterns and implications for future support, and the effects of international agreements such as the General Agreement on Trade in Services. Munir Bashshur, member of UNESCO's regional scientific committee for Arab states, presents a summary report of the conference, in both English and Arabic.