DETERMINANTS
OF ECONOMIC
DEVELOPMENT
ECONOMIC FACTOR
TECHNOLOGY
Technology generally refers to better techniques or
methods of production.
It can also be applied in other fields like public
administration, educational or social work.
Research
has
contributed
much to the development of
technology.
HE
P OINT E D
OU T
TH AT
THE
P RACTI CA L
APPLIC AT ION OF AN IN VEN T ION TO PRO DU CTI ON
FOR THE MARKET IS INNOVATION .
Reseach and development require
big funds. Through these better
ways of doing things or producing
goods are discovered.
The rich countries can afford to
undertake necessary and expensive
research and delopment projects.
The less developed countries
merely copy or imitate Western
technology.
TECHNOLOGY FOR LESS
DEVELOPED COUNTRIES
• Importation of technology saves both money and time.
• The imported technology should be suitable to local conditions.
• Professor Gunnar Myrdal, author of Asian Drama, noted that Western
technology has been adopted in Southeast Asia without proper
consideration of the local climate and soil conditions.
In the case of the industrial countries,
they use machines or capital-intensives
technology, because labor is scarce and
therefore expensive.
For the poor countries, they have an
oversupply
of
unemployed
and
underemployed individuals. They should
therefore use labor-intensive technology.
Schumacher, author of 'small is
beautiful',
suggested
an
intermediate technology for less
developed countries.
This type of technology is
between a primitive technology
and modern technology.
ROAR