Role of Technology in Economic Development in Pakistan
Discuss role of technology in the economic development of Pakistan. How problems being faced in diffusion can be removed.
Answer: INTRODUCTION OF TECHNOLOGY
Economic development in the objective of all the nations of the world. Economic development depends upon number of factors. Technology is an important factor for economic development of a country. All the developed and under developed countries are now making efforts to install improved technology in all sectors of economy agriculture, industry, transport, banking, health, education etc.
MEANING OF TECHNOLOGY:
Technology is a knowledge or techniques of facilitate the production of goods and services from economic resources.
ADOPTION OF TECHNOLOGY:
The developing countries can not adopt the technology and the products developed by the advanced countries. The industrially advanced countries are backed by large markets, high incomes, abundant capital resources, good managerial and technical skills, while less developed countries have small incomes, shortage of capital, abundant unskilled labor. The advance technology, therefore, cannot be opted for these countries. The developing countries should adopt appropriate technology which is based upon the need for providing employment. It should be according to the stage of development and within the prevailing economic policy framework of the country.
IMPORTANCE OF TECHNOLOGY:
Technology is important due to following reasons:
INCREASING IN LABOR PRODUCTIVITY:
With the use of the technology the productivity of labor increases. If we take the example of agriculture sector a farmer can work more than ten farmers with the help of tractor.
MORE HUMAN CAPITAL:
Human capital means skilled and educated labor force when we increase the use of technology the skills in labor also increase; it leads to human capital formation.
PROVIDING BETTER LIVING STANDARD:
We judge the living standard by per capita income and facilities to enjoy life. By the use of technology, national income and per capita income increases, this leads to better living standard.
As labor productivity increases the production level increase of country. This cause increase in national income of a country.
RAPID INCREASE IN SUPPLY:
According to Keynes rapid increase in supply is possible with the help of technology. If demand of a commodity increase, it is possible to match the demand with the help of technology. It removes the danger of inflation.
The basis of international trade is “a country exchanges its excess production with the excess production of another country”. So with the use of technology production and international trade also increase.
ADVANCEMENT IN INFRASTRUCTURE:
Technology itself is a component of infrastructure. However with the use of it infrastructure developed. Such as use of atomic energy, use of gas in place of petrol, use of computer etc.
NO WASTAGES OF RESOURCES:
Technology helps in removing wastages of resources in production. It is possible to have more output with same inputs in the presence of technology.
According to “Gallbraith”, as the use of technology increases in a society, the specialization also increases. This results in increase of national income and controlling the cost.
ECONOMICS OF LARGE SCALE:
Economies of scale mean advantages that are attached with high production level. As we know with the use of technology production increases, this causes decreases in cost need increase in profit.
OVERCOME VICIOUS CIRCLE OF POVERTY:
With the use of technology income of country increase, due to increase in income savings increase, demand increases and as a result investment and capital formation also increase, it helps to break the vicious circle.
IMPROVEMENT IN QUALITY:
When we use technology or machines it causes a big improvement in the quality of the products. If we take the example of textile industry, it shows that quality of machine made cloth is better than the hand made.
PROBLEMS BEING FACED IN DIFFUSION OF TECHNOLOGY:
Problems being faced in diffusion of technology are given below:
PROBLEMS OF ILLITERACY:
The literacy rate of developing countries is very low. In Pakistan literacy rate is 52% which is not satisfactory. Due to illiteracy people are unaware about the importance of technology. They don’t know how to use technological items.
RESOURCES ARE MISALLOCATED:
Misallocation of resources decreases the productivity of the resources low productivity creates the problem of low income and saving capacity of nation, so the people are unable to purchase modern technology.
In less developed countries population growth rate is almost high, over populated countries cannot use the modern technology due to the fear of unemployment.
BURDEN OF HIGH IMPORT COST OF TECHNOLOGY:
Due to high import cost of technology it is not used in all sectors of economies in under developed countries.
LACK OF CAPITAL:
In under developed countries there is lack of capital due to low per capita income. They cannot import necessary technology.
EFFICIENT ADMINISTRATION IS NOT AVAILABLE:
In developing countries like Pakistan, most of the officers who have no technical training are appointed and they no idea about the importance of use of modern technology.
Due to limited markets and slow turn over use of modern technology is not affordable.
There is lack of incentive in Pakistan so people having extra ordinary abilities prefer to work abroad.
In developing countries like Pakistan, people have the habit of hoarding precious metsl, stories and currency, hoarding.
MEASURES TO REMOVE PROBLEMS:
Following measures can be adopted to remove the problems being faced in diffusion technology:
Proper guidance should be provided to investors in technical, financial and marketing matters. Many people have funds but are unable to invest due to ignorance.
In under developed countries maximum educational facilities should be arranged for the people. Educated people can invent and innovate.
AVAILABILITY OF INFRASTRUCTURE:
Basic infrastructures facilities should be provided in the form of roads, electricity and telephone for implementation of technology.
SERVICES AND TRAINING CENTERS:
Training centers should be promoted in economy to equip the labor with training and technical skill.
USEFUL LABOR FORCE:
Skilled labor can only use the modern technology.
REMOVAL OF TAX:
To encourage business savings, tax concessions should be allowed to those who save higher ration of their profits and invested for import of technology.
EFFICIENT CAPITAL MARKET:
If we have an efficient market i.e. banks and financial institutions then people would be induces towards savings and use for import of technology.
By concluding we can say that the importance of the technology cannot be denied in order to achieve economic development.