Technology and Economic Development

Technology is the backbone of all countries and their economies. The profound role it has played in the progress of every developed and developing country can never be belittled. We have seen that global trade has improved, industries have changed the way they operate, productivity has been enhanced, manufacturing processes have boosted, digital transformation has increased connectivity and a lot of other significant changes have occurred in just a decade. The way nations are heading towards economic growth and prosperity is incredible, so let’s see how technology has revolutionized them.

Automation of processes and improvement in productivity

With the rise in automation, mechanization and robotics, manufacturing and production of goods have become faster. In turn, the cost of production has reduced and efficiency has increased. Workers can focus on the tasks that are critical and of high value. Monotonous and repetitive activities can be performed by automated machines which allows companies to achieve better output. Overall, the country's GDP per capita increases which in turns raises the standard of living of people. Countries become competitive enough (in terms of quality and quantity) to take part in global activities such as trade.

Global Reach for SMEs

Technology and digital platforms have eliminated the barriers to entry. Therefore, small and medium enterprises can market and sell their products and services to their global target market or customers. The growing use of cloud computing and technologies such as Software as a Service (SaaS), has helped companies in activities such as finance or operations. Also, this has minimized cost and created employment opportunities for people. 

Reshaped Industries

The emergence of a number of technologies such as Augmented Reality, Internet of things (IoT), Artificial Intelligence, Big Data Analytics and Blockchain have improved sectors such as healthcare, transportation, education, finance and agriculture. With all this, service delivery has become more efficient and decision making is now more effective. Digital governance has streamlined activities and it has become easier for businesses to work and operate. Government can keep a check on corruption and considerably reduce it. In turn, more investors will be attracted which will give way to economic development (i.e. foreign direct investment contributes to infrastructure development) and reduces the unemployment rate.

In a nutshell, countries all around the globe are installing advanced technologies and investing in them in order to update all of the sectors of their economy. This has allowed them to achieve economic growth and be more competitive, globally.