A country’s economic development depends on several factors, in which technology is an essential factor. Technology plays a vital role in all sectors, such as agriculture, health care, education, banking, and transport. It is improving rapidly to stay competitive in the world. Developed countries use technology to enhance their sources and moderate their influences, whereas developing economies need to look out for the beneficial uses of technology to boost the economy. They must use technology to create more job opportunities and improve their existing sources. This article discusses the important role of technology in states’ economic development.
Technology and developing economies:
Adoption of technology by developing economies has a significant effect on their economies such as reducing the national cost of production, devising better and cheaper ways of producing goods and looking out for inexpensive and more sustainable sources for producing products. A developing economy in a struggle phase needs raw materials and methods to support its economy more affordably and positively. Need for new jobs and business ideas must be introduced and technology plays a vital role in this regard. Using technology such as creating tech companies, discovering new devices and setting up new businesses, and creating more employment opportunities for the young generation ultimately boosts the country’s economy.
Importance of technology in the economy:
- Technology has led to globalization which has helped to create several job and business opportunities for the public. People can start their setups over the internet and online platforms or use different advanced methods and devices, which has increased employment opportunities and ultimately improved the state’s economy. The marketplace can be assessed, which helps to attract a more comprehensive customer range and selling of products. A few days ago, a new product, a 1080p HD video camera, was launched by a famous brand and sold at an exponential rate. The internet and advanced communication have helped to spread globalization even quicker.
- It has encouraged the growth of new businesses by providing new methods such as high-tech machinery, which has helped produce items faster and with better quality. Better products increase the country’s export, which boosts the state’s gross domestic product (GDP), ultimately leading to economic development.
- It has led to the discovery of inexpensive raw materials for the production of products. In the past, only raw cotton was available as a raw material for production but now many synthetic fibres have been synthesized, such as PVC, which can form the same product but at a more affordable price. This all has been made possible because of growth in technology.
- Technology has led to increasing the efficiency of business outputs rate. Larger quantities of products and services can be rendered with the minimum initial input. The new industrial equipment is so designed that it can produce a more extensive range of products in a limited span of time and a better quality. The fabric prepared over the span of weeks now can be produced in a maximum of 1-2 days because of the latest machinery. This development has led to an increase in the country’s economy.
- Technology has led to more research in science and business, which has helped different companies benefit from it. New methods have been designed which are able to manufacture products at a cheaper and faster rate.
- It has helped in international trade. In the past, products such as food, clothing, decoration items etc. were only limited to the country where they were produced, but now with the help of the internet and the latest transport available, they can be transported globally, which has helped for businesses to grow and ultimately helping the country’s economy. One of the best examples in this regard is online shopping websites such as Facebook marketplace and Amazon.
- It has helped to save time because time is money. The rise of different transport ships and the discovery of new routes has helped to cover long distances of months in weeks. It has led to faster selling of products in the different markets, which thus helps the country’s economy.
- The rise of the computer era has significantly led to an increase in boosting the economy. Mobile phones, the internet and social media platforms have devised new methods for people to earn their bread and butter, increasing the employment rate and boosting the economy.
Technology has helped to boost the economy, especially at the state level. It has helped increase the employment opportunities for the people, leading to an increase in economic growth.
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